About to switch supplier - when should I get claim back a direct debit refund?

Helen36

Hi all,

Having a day of working on sorting my finances! I'm about to change my electricity supplier and leave British Gas as I can get a cheaper rate. I pay by direct debit and my account is about £200 in credit. Should I claim this back now or wait for British Gas to refund me after the switch goes through? I'd hate for anything to go wrong and lose any of the money.

Many thanks,

Helen

MK55

Helen36 wrote: »

Hi all,

Having a day of working on sorting my finances! I'm about to change my electricity supplier and leave British Gas as I can get a cheaper rate. I pay by direct debit and my account is about £200 in credit. Should I claim this back now or wait for British Gas to refund me after the switch goes through? I'd hate for anything to go wrong and lose any of the money.

Many thanks,

Helen

You're probably not in £200 credit, you need to give a meter reading and get billed to date, then whatever is remaining wil be refunded after you change supply if you're still in credit.

Helen36

I've put in my meter readings, and I am this much in credit as we overpay during the summer to then cover our higher winter bills. We've also been using less energy than BG had estimated, which has increased our credit further. We're on a standard tariff as our plan ended earlier in the year, so I'm hoping that there won't be any final unexpected costs. Think this is the only place where I am in credit!

amiehall

When your closing reading is processed they should generate a final bill and refund you automatically. Don't close your direct debit!

jalexa

Helen36 wrote: »

I pay by direct debit and my account is about £200 in credit. Should I claim this back now or wait for British Gas to refund me after the switch goes through? I'd hate for anything to go wrong and lose any of the money.

You won't "lose" the money (given enough time) but I cannot say that nothing will go wrong.

The amiehall advice is correct, however there are other ways you can look at this. If you have not yet started the switch you are fully entitled to request the refund of a surplus which the supplier must agree to or explain why not. Alternatively if the switch is progressing then I would inquire if British Gas returns surpluses to the direct account. If so, as amiehall advises, do not cancel the DD mandate. If you have a substantial post-reading surplus (as you report) it may be possible to get the regular monthly DD collection suspended. I do not know about British Gas but SSE advisers and billing system can cope with that request.:T

The other thing to be alert to is the new supplier taking direct debits while you are still paying British Gas.:( Up to you really. You will not lose money but final bills can take up to 30 working days from the transfer date.

Helen36

Thanks for the advice. I'm not planning on stopping the direct debits. I've started the switch now, and went to my BT account and put in for a £58 refund, which it recommended as my plan status showed that I was paying too much. It'll still let me transfer the remaining £150 credit back into my account, and I'm not sure whether to get the money back now as it's not paying off my credit card sat there, or if I should leave it in case taking it out now causes problems with the switch. For experienced switchers, I take it that British Gas are usually pretty trouble free on giving refunds if you leave them? Any suggestions?

Helen

Terrylw1

Have you been given your switch date by your new supplier?

If so and it has passed (and you gave the switch reading), you could calculate your own final bill.

If they owe you most of it, ask for it back hut leave the account in credit to cover the final bill. If they argue to keep it, negotiate yo keep the final bill value + X value as a safety. Then they can refund the smaller safety net to you later which you won't be as bothered about.

MK55

I'd say take it back and just leave dd active and let them take final bill of XX balance.