Can a fixed price be changed?

Mrs_Arcanum

On a fixed tarif until October 2013. Recently gave meter readings and they have put my DD up by over 25%.

Now as far as I was concerned you pay a bit extra for a fixed price so that there are no surprises. In addition by putting the DD up they are assuming the balance on the bill will not be cleared by the end of September?

Advice is appreciated.

HappyMJ

Mrs_Arcanum wrote: »

On a fixed tarif until October 2013. Recently gave meter readings and they have put my DD up by over 25%.

Now as far as I was concerned you pay a bit extra for a fixed price so that there are no surprises. In addition by putting the DD up they are assuming the balance on the bill will not be cleared by the end of September?

Advice is appreciated.

No, but as your usage has increased the DD must go up. It's been a rather cold winter this year so everyone has used a bit more than normal.

ic

The "fixed" part of the tariff applies only to the charges levied - so the cost per unit of gas/electric, the daily standing charge, any discounts that are applied, etc. The supplier can't change this for the duration of the fix. However, you be charged for what you use - use more, and you'll pay more, equally, use less, you'll be charged less. If your direct debit didn't go up, you'll just have a bigger outstanding debt to pay later.

Mrs_Arcanum

ic wrote: »

The "fixed" part of the tariff applies only to the charges levied - so the cost per unit of gas/electric, the daily standing charge, any discounts that are applied, etc. The supplier can't change this for the duration of the fix. However, you be charged for what you use - use more, and you'll pay more, equally, use less, you'll be charged less. If your direct debit didn't go up, you'll just have a bigger outstanding debt to pay later.

Here you are making the same assumption the energy company has. Which is why I get miffed. There is still the low use summer period to come.

The energy companies like to have you in a balance situation by the end of Spring, where my account is in balance by the beginning of Autumn.

macman

Oh dear, serious misunderstanding here. A fixed tariff is a fixed unit price, not an 'all you can eat for £x per month' offer!
Use more units, and your DD does not cover the increased costs, and so when your meter is read, the DD is increased to recover both the deficit and also the increased ongoing usage.

Mrs_Arcanum

macman wrote: »

Oh dear, serious misunderstanding here. A fixed tariff is a fixed unit price, not an 'all you can eat for £x per month' offer!
Use more units, and your DD does not cover the increased costs, and so when your meter is read, the DD is increased to recover both the deficit and also the increased ongoing usage.

So why didn't they up it for the previous quarter?

Cardew

Mrs_Arcanum wrote: »

So why didn't they up it for the previous quarter?

Have you asked them?

Your DD is worked out by a Computer and is usually 'untouched by human hand'

Almost without exception, if you contact the company and give valid reasons why your DD should not increase, they will reduce it back to the original.

Don't forget that a large number of complaints we get in this section is that the Utility company failed to increase the DD and the account finished massively in debt.

Pincher

Hmm, a "Eat As Much As You Want" price plan is what I'm on with Thames Water, since I have no meter.

Unlimited Broadband is EAMAYM as well.

I think E.On has a scheme where the annual amount is indeed fixed for a whole year, but it's reviewed every year, so you only get to go wild with your consumption once. Warm-something.

Ask your supplier for an Unlimited Energy price plan, like how you believe it should be. If they give it to you, please come back and tell us how much it costs per year.;)

Fire_Fox

Mrs_Arcanum wrote: »

Here you are making the same assumption the energy company has. Which is why I get miffed. There is still the low use summer period to come.

The energy companies like to have you in a balance situation by the end of Spring, where my account is in balance by the beginning of Autumn.

Monthly DD is a method of budgeting, the supplier wants you to be in credit or zero balance all year round. If you want to go into debit you need to choose a quarterly in arrears payment plan.

Nobody is assuming anything, the suppliers computer know you are going to use less over the summer but they want you in credit by September/ October to cover the next winter period not just having finally paid the previous winter's debt off.

If you don't want your bills/ DD to increase you need to moderate your usage, read your meters monthly, supply those readings and use less energy. Supplier only has to read your meter every two years, you are at home on a daily basis so can do it as often as you see fit - timely DD adjustments are reliant on customers doing this.

Fixed price is the same as having a guaranteed price of 10p per piece of fruit for the next year, if you eat more fruit you will still have a larger grocery bill. Fixed price tariff stops them increasing to 12p per piece of fruit.

macman

Pincher wrote: »

Hmm, a "Eat As Much As You Want" price plan is what I'm on with Thames Water, since I have no meter.

Unlimited Broadband is EAMAYM as well.

I think E.On has a scheme where the annual amount is indeed fixed for a whole year, but it's reviewed every year, so you only get to go wild with your consumption once. Warm-something.

Ask your supplier for an Unlimited Energy price plan, like how you believe it should be. If they give it to you, please come back and tell us how much it costs per year.;)

And then charge the rest of the street £100 a year each to plug in to yours...

Cardew

macman wrote: »

And then charge the rest of the street £100 a year each to plug in to yours...

I have heard of a person with unmetered water, with hoses running to his next door neighbours - who are metered.