paying well up front???

mod-boy

I don't know if any other MSE'er has come across this...

2 quarters ago, I got a rather large electricity bill and asked to pay it in installments, a plan was set up and a card given to me. I made the payments so far so good.

Then, when it was paid up I got lots of 'you have fallen behind' letters, I made calls to supplier to confirm I owed nil this was confirmed, then I got bailiff letters etc saying I owed money to the supplier - I did not- this was cleared up after a call to the supplier and end of. It had been a 'mistake'

My next bill arrived, bit larger than expected, I asked if I could split it into three payments and they said yes - sent me another payment card, my reason to be in three installments being so that when the next quarterly came in I would then be a nil owed, then the new bill would pay it in full as previously I had - (until getting one massive bill followed by one quite big, I removed the offending electric gobbler therefore will be in theory back to normal.)

Hope you follow.

Now the payment card was sent to me but no 'plan' ie a list of dates when I must pay each installments. No - instead a bailiffs letter and you have fallen behind with payments - (yet I hadnt been instructed as to when I must pay and was still waiting for further instruction. I re iterated this to several staff i was 'passed around' nobody knew what had happened until one said oh yes because there has been no request to set up a payment plan then you owe the lot still and must pay it I said yes there had been a request and that theyd sent me the new card but no list of payment dates. They then said that I could not pay 3 installments, but that being as they had worked out (from using the unusually high previous bill) that I use £50 per week of electric, then I must pay my installment plus that amount as well ....:( I thought what the heck are they on with here?

Its like you go to tesco for your groceries, at the checkout your bill for your weeks food is £180, then they say "ok then mr mod-boy, we have worked out that you spend £180 weekly on your grub so therefore in addition to paying this bill for your food you have right there with you, we anticipate that next week you will buy the same so we want that money upfront..."

Its outrageous that for the 'privilege ' of paying your bill in installments they can (are) demanding you also start paying up for the next lot which you havent even used yet) Furthermore thyd like to put in a pre payment meter so that I would then have to pay double for my electric ...greedy barstewards cashing in on others poverty and in some cases creating it.

Has anybody else witnessed this same scenario I wonder?

And no I won't use direct debit as what has happened is I am a very tight budget and got bank charges when the company took more out than they should and on a different day date so no I won't ever use it again..the banks say this is quite ok and happens...well i don't think it is ok at all...

Richie-from-the-Boro

mod-boy wrote: »

I don't know if any other MSE'er has come across this...

2 quarters ago, I got a rather large electricity bill and asked to pay it in installments, a plan was set up and a card given to me. I made the payments so far so good.

Then, when it was paid up I got lots of 'you have fallen behind' letters, I made calls to supplier to confirm I owed nil this was confirmed, then I got bailiff letters etc saying I owed money to the supplier - I did not- this was cleared up after a call to the supplier and end of. It had been a 'mistake'

My next bill arrived, bit larger than expected, I asked if I could split it into three payments and they said yes - sent me another payment card, my reason to be in three installments being so that when the next quarterly came in I would then be a nil owed, then the new bill would pay it in full as previously I had - (until getting one massive bill followed by one quite big, I removed the offending electric gobbler therefore will be in theory back to normal.)

Hope you follow.

Now the payment card was sent to me but no 'plan' ie a list of dates when I must pay each installments. No - instead a bailiffs letter and you have fallen behind with payments - (yet I hadnt been instructed as to when I must pay and was still waiting for further instruction. I re iterated this to several staff i was 'passed around' nobody knew what had happened until one said oh yes because there has been no request to set up a payment plan then you owe the lot still and must pay it I said yes there had been a request and that theyd sent me the new card but no list of payment dates. They then said that I could not pay 3 installments, but that being as they had worked out (from using the unusually high previous bill) that I use £50 per week of electric, then I must pay my installment plus that amount as well ....:( I thought what the heck are they on with here?

Its like you go to tesco for your groceries, at the checkout your bill for your weeks food is £180, then they say "ok then mr mod-boy, we have worked out that you spend £180 weekly on your grub so therefore in addition to paying this bill for your food you have right there with you, we anticipate that next week you will buy the same so we want that money upfront..."

Its outrageous that for the 'privilege ' of paying your bill in installments they can (are) demanding you also start paying up for the next lot which you havent even used yet) Furthermore thyd like to put in a pre payment meter so that I would then have to pay double for my electric ...greedy barstewards cashing in on others poverty and in some cases creating it.

Has anybody else witnessed this same scenario I wonder?

And no I won't use direct debit as what has happened is I am a very tight budget and got bank charges when the company took more out than they should and on a different day date so no I won't ever use it again..the banks say this is quite ok and happens...well i don't think it is ok at all...

Your CAC ± discounts + VAT ÷ 12 = monthly payment plan, how much per month were you paying and did you pay every single month

- or -

Are you saying you had a big bill because you hadn't paid the previous one in full, and asked for a payment plan, but never actually made any payments ?

SwanJon

mod-boy wrote: »

Furthermore thyd like to put in a pre payment meter so that I would then have to pay double for my electric

Prepayment prices are very close to (if not the same as) paying the bill when it arrives, not double (not sure where you got that from).

You don't say who you are with, but with BG there is no official option to pay a bill in 3 installments. The options are pay the bill when it arrives, or set up a plan to pay the balance and cover ongoing consumption. This is probably where the confusion has arisen. The first card was for a plan, and once you stopped paying the plan was behind (even if you hadn't been billed yet for your ongoing consumption). If no new plan was set up (and it sounds like you don't want one), there was nothing to stop the reminders etc.

A regular plan might be easier to manage than the quarterly bills, and you can save money by using DD.

mod-boy wrote: »

Its like you go to tesco for your groceries, at the checkout your bill for your weeks food is £180, then they say "ok then mr mod-boy, we have worked out that you spend £180 weekly on your grub so therefore in addition to paying this bill for your food you have right there with you, we anticipate that next week you will buy the same so we want that money upfront..."

I take it you haven't tried going to tesco with your £180 shopping and offering to pay £60 a week for the next few weeks, but also to carry on coming in each week for your shopping?

mod-boy

Thanks for replies......

Swanjon said "The options are pay the bill when it arrives, or set up a plan to pay the balance and cover ongoing consumption. " Yes - that was partly what has happened, I chose the option to pay installments (on my previous bill) to pay the balance due in installments, - this did not include paying the additional costs of what i 'might' use in the future and adding this on. right. (although clearly now they are trying to do this)

And my point is, rather than pay for ongoing consumption - I will pay for the ongoing consumption when the bill arrives for that next quarter ie in that I am paying either in full/or installments the bill WHEN it arrives rather than BEFORE it arrives when the amount they ask is what they are ESTIMATING you will use - and furthermore using a non typical HIGH bill to base their calculations on, if that makes my point clearer.?

I'm afraid pre payment meters are indeed set at a MUCH higher rate, meaning if you are on a meter then you do pay much more for your unit than if you were not on a meter and this amount is double, when I can find again where I have seen that fact I will post it.

Swanjon - why did you think "it sounds like you dont want one" - referring to a payment plan, ? when I'd already said "Now the payment card was sent to me but no 'plan' ie a list of dates when I must pay each installments" Clearly indicating that I had indeed opted for a payment plan, received the card but no list of payment dates.....

But swanjon i did like your very drole take on paying upfront at a supermarket....(what you suggest technically you could do that if you used a credit card) ie pay it in installments...:rotfl:I take it you are someone high up in management of a utility company...And tesco have not yet suggested I pay upfront for what I 'might' buy next time, unlike the electric supplier......

At the end of the day all I want to do is pay the bill, in installments. Like I have done before....Then when the next bill comes pay that either in full or installments, before the next arrives.....I always had paid it off in one go, quarterly until the time the unusually high one arrived. When I did this I was not asked to also pay for what the next bill might be as well.....so why am I being asked now?

NB I got the installments set so that the amount due was paid off before the next bill arrived, thus setting it back to zero, then preparing to pay the next bill off in the same way or all in one go....

I hope this makes it clearer.....

mod-boy

Richie-from-the-Boro wrote: »

Your CAC ± discounts + VAT ÷ 12 = monthly payment plan, how much per month were you paying and did you pay every single month No my first plan was £38 a week for a period of ten weeks - to enable it to be paid up before the next bill arrived, this I did and all went fine....

- or -

Are you saying you had a big bill because you hadn't paid the previous one in full, and asked for a payment plan, but never actually made any payments ?

i had a big bill because of a faulty electrical item being constantly on - unfortunately - which is now fixed (immersion) so you can imagine.....the timer had developed a fault. I did make payments, I made all payments and the bill was paid in full by making installment payments on a regular basis just as instructed by using the card which they sent me which could be paid at a paypoint.

mod-boy

Richie I dont understand this calculation:

Your CAC ± discounts + VAT ÷ 12 = monthly payment plan

what is CAC? and who gets discounts and how/why?

My payment plan, you see, was set to 10 weeks at my request, in order to have a clean slate for when the NEXT bill came in.

SwanJon

mod-boy wrote: »

Swanjon said "The options are pay the bill when it arrives, or set up a plan to pay the balance and cover ongoing consumption. " Yes - that was partly what has happened, I chose the option to pay installments (on my previous bill) to pay the balance due in installments, - this did not include paying the additional costs of what i 'might' use in the future and adding this on. right. (although clearly now they are trying to do this)

And that is what I said isn't available (at least with British Gas). Your suggestion would mean that you would clear the balance over 2 months after it became due. If you are billed quarterly you have already had up to 3 months 'credit' as you have been using the electricity before the bill is generated

mod-boy wrote: »

I'm afraid pre payment meters are indeed set at a MUCH higher rate, meaning if you are on a meter then you do pay much more for your unit than if you were not on a meter and this amount is double, when I can find again where I have seen that fact I will post it.

I won't hold my breath. Plenty of comparison sites out there but you won't find a comparable PP tariff that is double a quarterly one.

mod-boy wrote: »

Swanjon - why did you think "it sounds like you dont want one" - referring to a payment plan, ? when I'd already said "Now the payment card was sent to me but no 'plan' ie a list of dates when I must pay each installments" Clearly indicating that I had indeed opted for a payment plan, received the card but no list of payment dates.....

You opted to pay a due bill over three months - a payment plan is for ongoing consumption (see above).

mod-boy wrote: »

But swanjon i did like your very drole take on paying upfront at a supermarket....(what you suggest technically you could do that if you used a credit card) ie pay it in installments...:rotfl:And tesco have not yet suggested I pay upfront for what I 'might' buy next time, unlike the electric supplier......

And option is available to you for tour electricty bill (although unadvisable)
Tesco also ask you to pay for all your shopping before you use it...prepayment if you will.

mod-boy wrote: »

I take it you are someone high up in management of a utility company

Sadly no, much lower down.

Thanks for the clarification - I think I was right first time.
You are looking for an option that (IMO) isn't available, and as such the first agent tried to set you up on a payment plan (to cover the balance and ongoing consumption) to stop any reminders. The second agent grasped that you didn't want this but failed to explain that your idea wouldn't stop the reminders and that the bill is due when it is recieved.

undaunted

I can see your frustration when on a limited budget & struggling to keep up but I can also see why your supplier doesn't want to extend 5 months credit (ie a quarterly bill + further 2 months to clear it beyond the 28 days they'd expect)

Have you looked at tarrifs & whether you are on the best possible, insulation, charis grants for any possible help etc?

Richie-from-the-Boro

The cheapest leccy is to use the comparison sites, to do that you have to be able to compare products, your personal preferred 'product' does not exist, its non standard, you will never be able to compare and save money.

Most savings to be had mandatorily mean :

- you go e-bill & e-account only
- you put your own monthly meter readings in
- you pay by direct debit, like it or lump it

People of a certain age, or on a budget so limited they are 'officially fuel poor' or are disabled, can get additional help and very advantaged tariffs and discounts.

what is CAC?

It just means Calculated Annual Consumption, you leccy company will know in advance to almost the penny how much you will use over each of the next 12 months. They will add to that any arrears you owe, any planned increases etc, and divide by 12, that is your payment plan.

My payment plan, you see, was set to 10 weeks at my request, in order to have a clean slate for when the NEXT bill came in.

Is your downfall I'm afraid as undaunted / SwanJon have explained. In your proper desire to seek control of your limited finances you may well have 'shot yourself in the foot'. You need a standard payment system to be able to get any advantage from any supplier, and a clean slate with your current supplier before you will be allowed to change suppliers.

Joyful

Another way is to start with a clear balance then use the card you have to pay adhoc amounts before the bill comes in and any remainder within a couple of weeks of the bill coming in. No supplier will let you pay each bill over 3 months although as a one off I can see it happening.

victoriav

I had a similar scenario, I was with npower and they let me pay the bill in installments. The staff on the phonelines were really nice and helpful too.... On more than one occasion....

Personally, I too, don't see when paying installments why you have to then pay upfront for the next bill at the same time either....!!! Thats like the energy company saying "heads we win tails you lose"....

Therefore in your shoes, I would pay your installments (from the bill that is currently owed) and then you've paid it off, then like that they cannot say you are refusing to pay the bill can they!! - (though they might try that....)

By what you are saying, I think then once you had paid what is owed,(in your installments) then later your new bill comes in and then you pay it in full to avoid them saying you owe something that you don't..as they will likely have set up a payment plan of their own misguided calculations, and will try to then get you to pay upfront, bailiffs letters and the like and if you find that you have overpaid then getting it back is impossible and there seems to be no body overseeing this sort carry on does there. Why? because it is in the energy company's best interest to extract as much as they can from each customer whether by false bills, demands for upfront, charging more for pre pay meters - a lot more, etc, etc...Then repeatedly putting up the cost of electricity using the most spurious of excuses with NOBODY doing a dam thing about it...I think one poster on this board on another thread who is possibly a meter reader says fuel theft is epedemic! Well, I am not suprised at all.