monthly direct debits ( ...again and again...)

keiran

I entered my meter readings online with Scot Power today, and was immediately informed that I was in debit to the massive tune of £33 and they'd be increasing my monthly D/d from £50 to £57

Isn't the point of monthly D/D to smooth out these variations over the seasons? And surely the £33 amount will be covered by the much lower usage over the summer months? Isn't all this rather elementary?

Have we come to a position where power companies want us to be in credit at all times... Well then, declare so honestly, and operate accordingly...pl don't give us the BS of monthly D/Ds being meant to smooth out highs and lows

I genuinely despair at the behaviour of power companies.

A very long slow painful grilling in hell seems much too good for them

StuC75

The DD can only be varied once they know what your actual usage has been, after having a cold winter and prices going up the debt has occurred. Check you bill to see how you usage in KwH has varied year ro year.

Yes the £33 will be covered from the lower usage in summer, but paying the extra now will benefit next year.. in that its building in a provision for the higher prices \ usage other wise you may be say £70 behind in 12 months..

I know from my bills that my Year on year KWH has gone up 5% in usage terms, but 16% in total cost to me (so the difference being the cost per kwh)..

Dont forget if your using DD then you are getting a dual fuel discount.

use you actual Kwh readings on price comparison sites to see what could be getting elsewhere...

StuC75

also the £33 shortfall shows you need to be paying more,

So either pay up the shortfall as an extra payment now, and then look to reduce your usage over the next 12 months (to counter price increases), or accept that £33/12 = £2.75 shortfall in what youve use * 2 so effectively proving that you are then likely to use that over the next 12 months to = £5.50 being what your payments should be increasing by at the very least before there are any other price increases..

Wywth

keiran wrote: »

I entered my meter readings online with Scot Power today, and was immediately informed that I was in debit to the massive tune of £33 and they'd be increasing my monthly D/d from £50 to £57

Isn't the point of monthly D/D to smooth out these variations over the seasons? And surely the £33 amount will be covered by the much lower usage over the summer months? Isn't all this rather elementary?

Have we come to a position where power companies want us to be in credit at all times... Well then, declare so honestly, and operate accordingly...pl don't give us the BS of monthly D/Ds being meant to smooth out highs and lows

I genuinely despair at the behaviour of power companies.

A very long slow painful grilling in hell seems much too good for them

Don't despair. Read this and follow the advice given

http://www.moneysavingexpert.com/utilities/lower-energy-direct-debits

keiran

I'm actually getting a very good deal indeed as I took up a 3.5 yr fix, 18 months ago(until 31 Dec 2014) . Energyhelpline shows that I couldn't possibly be on a better tariff now.

I don't despair... I'm an informed consumer and of course I know that with D/Ds everything "comes out in the wash" eventually.

I do object to the sharp practices though. My £33 shortfall will of course be covered by the much lower Summer usage. I think the posters above haven't understood for some reason.

I really don't think we need defenders of power companies on here...

StuC75

We do understand that the lower summer usage will cover that up, many including me have been \ are in the same situation.

Its just a difference in timing that the suppliers expect to have a slight credit balance in spring, that is built up to a health credit at the start of summer, which then carries you back to slight credit after winter to be reviewed in the next spring.

Your plan \ view is out by 3 months from this 'strategy', but utilities dont want to provide credit to you (cover when you owe them), but want your payments to cover what you would be using - so you are paying in advance by building up the credit.

Why not pay the shortfall now, and call the supplier to say keep DD as it is and that you would repay any shortfall next year to keep on track.

Use your usage figures to work out what you are likely to pay over the next 12 months.

All that the fix has done is fixed the price you pay per kwh,not the price you pay by DD that is dependent on usage..

keiran wrote: »

I do object to the sharp practices though. My £33 shortfall will of course be covered by the much lower Summer usage. I think the posters above haven't understood for some reason.

I really don't think we need defenders of power companies on here...

Nada666

Have we come to a position where power companies want us to be in credit at all times... Well then, declare so honestly, and operate accordingly...

??? Suppliers have been declaring for years that they now expect customers on direct debit tariffs to continually be in credit. And March/April is the zero point - not the anniversary of your joining date.

An increase of only £7 on a £33 shortfall is not excessive - it is your new usage plus the £33 arrears claimed back over six months approx.. You have to pay double the £33 at first, not just £33.

It is not sharp practice - you are the one who wants to indulge in sharp practice - you think you should not have to remain in credit and should be treated differently from other customers.

Buzby

No I see you points - however, the suppliers twist it to their advantage (It is their ball, after all !). This is also the reason I don't pay them by DD.

Nada666

You're the one clucking to Foxy Loxy and Ducky Lucky for no valid reason. Please look at your figures again - you are creating this kerfuffle and fermenting and fomenting outrage over a £1 difference on a £57 instalment!!!!!

According to your own figures over the next twelve months you should be paying at least £55.50* per month. Rounding up to a whole pound that is £56. They are asking for £57. Outrageous!!!

* £33 / 12 = £2.75. £2.75 x 2 = £5.50

As to changing the debit more than once a year - you are seriously saying you would prefer in three months to bump up the debit by an even larger amount than seven pounds or in six months an even larger larger amount?

Of course it is better not to change the debit every quarter or every reading. But for every customer who hates the change another dozen would be more seriously disadvantaged by not having it updated. A balance has to be struck.

techno12

Just the way it is in my experience.

I've been with NPower for 10 years and the monthly DD varies wildly twice a year. They can't seem to fathom out an average monthly amount even though I use roughly the same each year.

So, last summer I was paying £66 pm, then when the bill came in Dec they dropped it to £32 as I was in credit to the tune of £200+. As it's the winter months the £32 added to my balance each month will be nowhere near enough to cover the huge winter bill once it arrives in June.

Hence, they'll roughly double the monthly DD again to clear the arrears and 'get ahead of the curve' and the cycle will repeat.

I'm used to it now and don't mind at all, as it has to be paid anyway.

DragonQ

I remember with E.On I was spending an average of £30pm whilst my direct debit was £36pm and eventually they wanted to drop it to £17pm or something silly. I got them to agree over the phone that it was far more sensible for them to reimburse me the difference and set the direct debit to £30pm.

After that it did actually rise a bit to £32pm and they wanted to increase it to £42pm! Talk about heavy-handed...