Good to go Direct Debit?

Gnid

Is going monthly direct debit a good thing with electricty companies?

I just ask EDF to go direct debit and from seeing the forums, it seems that those electricity companies overcharge and does not refund money sometimes....what has been your experience..

Is the frustation really worth the £10 yearly saving?

EDIT: to clarify this is MONTHLY direct debit

moonrakerz

Depends what you mean by Direct Debit !

I would never pay my utilities bills by monthly direct debit, you only have to look at this site to see the number of people that end up owing huge sums of money, or complaining that their monthly DD has gone up from a fiver to £250 !

By all means work out what you should be paying each month and then put that in a decent instant access account. Then pay your quarterly bill by Direct Debit, BUT - check the meter reading first !

Gnid

Oh no!

How should I cancel my monthly direct debit?? I've just joined EDF and gave my bank account number stuff like that...

I don't feel that great if they are going to overcharge me...

If I switch, would it help with them not overcharging me??

KittyBoo_2

I don't like the idea of paying this way. I put the money away and then pay the bill online. I know it's meant to be cheaper if you pay direct debit but I don't want my bills dividing into equal monthly payments. I like to see the gas bill going down in the summer and I want the money in my account getting interest and not in theirs. Just my way of looking at it. I pay all my bills this way - I save a bit each month and then pay the bill when it's due. My Gran and Mum all put money away each week towards their bills so it's what I grew up with.

Gnid

I am getting confused...isn't monthly direct debit a payment that is based on electricity already used. I.e. it is not a prepayment??

I am getting scared on EDF overcharging me now...what is the best way to cancel direct debit?

moonrakerz

Gnid wrote: »

I am getting confused...isn't monthly direct debit a payment that is based on electricity already used. I.e. it is not a prepayment??

The idea is that you overpay in the summer and underpay in the winter, so after 12 months you have exactly paid for your useage. The only problem is that most times this doesn't work, you end up paying too much or too little with the results that you can see on this site !