Scottish Power - when paying for your energy used isn't enough!

zagfles

Nada666 wrote: »

No, that is dated November 2011. On that very table "spring annual review date" is acknowledged as an option. Scottish Power are free to adopt this system if they like. Nowhere does your leaflet say that that is not permitted. The table explicitly includes the footnote "Correct as at Nov 2011. Consumers should check with their supplier for their current policies."

So please point me at SP's current policy.

Cryztal

I agree with Simon on this one - Ive just had a similar problem with Scottish Power, they wanted to increase my DD from £58 per month to £125 per month because they have decided Im going to use almost twice the amount of energy this year than Ive used each year for the last 10 years. No idea what theyve based this on, my energy usage so far has been less than previous years for various reasons

However it was very easy to resolve without having to ring Scottish Power and disputes what they said to Simon about not being able to reduce the Direct Debit amount.

If you sign into your Scottish Power online account then go to manage my account it allows you to access your direct debit information. It says you can make a one of payment (presumably to offset against any perceived debit) and then reduce your Direct Debit - there is a sliding bar scale which works it out, I was able to make a £5 payment and keep my direct debit at £58

ETA - the £5 payment came off my bill, it isnt an admin charge

Simon7685

I did go into my account online to see if I could do that when I put my readings in but it wouldn't allow me to alter anything. I have just gone in now and I can't change my DD amount. I can change pretty much anything else but not the amount of the DD. Maybe its something to do with my account showing a deficit, I will try again on the 20th after this months payment goes in, when my account will be in credit.

Its good to know that other people are getting similar experiences with SP (if you know what I mean) and I think it does back up my position.

zagfles

Cryztal wrote: »

I agree with Simon on this one - Ive just had a similar problem with Scottish Power, they wanted to increase my DD from £58 per month to £125 per month because they have decided Im going to use almost twice the amount of energy this year than Ive used each year for the last 10 years. No idea what theyve based this on, my energy usage so far has been less than previous years for various reasons

However it was very easy to resolve without having to ring Scottish Power and disputes what they said to Simon about not being able to reduce the Direct Debit amount.

If you sign into your Scottish Power online account then go to manage my account it allows you to access your direct debit information. It says you can make a one of payment (presumably to offset against any perceived debit) and then reduce your Direct Debit - there is a sliding bar scale which works it out, I was able to make a £5 payment and keep my direct debit at £58

ETA - the £5 payment came off my bill, it isnt an admin charge

Weird! A £5 one off payment and they chop £67 per month off the DD? How does that make any sort of sense?

I tried that option but it says it's not available! I wanted to make a £10 one off payment to reduce my DD to zero :rotfl:

It really makes you wonder what the reasoning is behind such a strange scheme!

Simon7685

I have also just done some interesting calculations using my usage over the last few years but with current prices...........

Oct 2009 - Oct 2010 = £1140 or £95.00 a month
Oct 2010 - Oct 2011 = £1186 or £98.83 a month
Oct 2011 - Oct 2012 = £1172 or £97.65 a month
Oct 2012 - Oct 2013 (using my estimate of the next 3 months) = £1141 or £95.08 a month.

So based on that an average for the last 4 years is £1160 or £96.66 a month.

So why would I not be angry at SP expecting me to pay £120 a month!

Cardew

zagfles wrote: »

If the review date is the spring, and people join them in autumn, they clearly need to pay considerably more than annual usage/12 for the first 6 months to achieve a zero spring balance, don't they?

I not sure they do aim for a zero Spring balance in the first year when a customer joins in Autumn. I had a large debit balance in April, my DD payment went in 01 May and I had a debit balance(£69) on 04 May which was added to my 05/13 to 05/14 estimate.

So why can't they just be upfront with customers about the date they use?

Agreed


I don't believe they have a spring annual review anyway, my recent recalculation was based on the next 12 months, not the next 9.

However IF they use a Spring Review for your account, they can adjust in the forthcoming 3 month reviews! Also they can, like my account, Review in Spring and carry forward a debit balance.

Yes, but so what? This isn't about the value of the DD discount, it's about being upfront with customers about how the calculation is done. Is that too much to ask?

This has been discussed before and this thread includes a SP Rep's post:

https://forums.moneysavingexpert.com/discussion/comment/57253183#Comment_57253183

In the OP's case his gripe is they used a computer generated estimation, because they have no annual history of his consumption.

He calls this estimate 'completely ficticious' because it doesn't conform to his unusual consumption pattern - e.g 70% on Economy 7 when I believe the average is 55%.

If it is not about the possibility of him paying too much initially and building up a credit balance; why doesn't he pay by one of the other methods?

Cardew

Simon7685 wrote: »

I have also just done some interesting calculations using my usage over the last few years but with current prices...........

Oct 2009 - Oct 2010 = £1140 or £95.00 a month
Oct 2010 - Oct 2011 = £1186 or £98.83 a month
Oct 2011 - Oct 2012 = £1172 or £97.65 a month
Oct 2012 - Oct 2013 (using my estimate of the next 3 months) = £1141 or £95.08 a month.

So based on that an average for the last 4 years is £1160 or £96.66 a month.

So why would I not be angry at SP expecting me to pay £120 a month!

Do you really not understand that SP do not have that consumption history in their records?

The £120 would be adjusted down in the 3 month reviews - eventually to below £96.66 a month.

You haven't even addressed, let alone answered, this point:

You state that 'they can stick the measly DD discount where they want'.

Also:

'I am happy to pay for what I have used over the year but not an amount on top just to keep them money in the bank.'

In which case why don't you elect to pay by Variable Direct Debit, Quarterly Direct Debit, Online by Direct Debit, Quarterly by Cash, Cheque or Postal
Order?

You can even get a 'prompt payment' discount.

Simon7685

Their reasoning is simple I think...........

1. Energy firms operate just like a cartel, one puts up the price and the rest follow. They know we can't go anywhere else outside their relatively small group of companies and we need the energy. so they perceive they have everyone over a barrell and they can operate as they please.

2. Ofgem is a waste of space and they have little power now compared to what they used to have before a previous Govt took it away. Yes they dish out fines here and there but what is a £5 million fine when you are making £500 million or more in profit? It is a drop in the ocean to them and they don't worry about it in the bigger picture.

3. All energy companies have one goal and that is to ensure that all customers are in credit with their accounts all year round. So they fix payments above where they need to be on a regular basis. They particularly don't want people to owe anything after winter, so increase payments to try and stop this, reducing them later in the year when you are using far less energy because of the seasons.

They are not interested in whether you can afford the payments they want or not, they just want more and more all the time.

There is nothing wrong with any company making a profit, that is what it is all about but when their profits fall, even though they are still making a good profit what happens, prices go up. They blame the wholesale price but when that drops their prices don't.

They need more regulation and bringing into line. Personally I think prices should be linked to the wholesale price with a margin for reasonable profit added on. Though no doubt they would find a way round that as well.

Despite the worst economic situation for years, when did you last see an energy supplier go bust? you didn't because it will never happen. I am a great believer in free enterprise and the private sector but the worst thing we ever did was privatising the energy firms.

Cardew

What has the above post, even allowing many of the points are true, got to do with your situation with Scottish Power?

Simon7685

I have more than answered the point. It is up to SP to now come to me and explain how on earth they can justify me using over 4000 units more than I have ever used before. Just because they do not have a usage history, that does not make it right!

On 20 July when this months payment goes in my balance will be nil. So my payments of £97.65 from last October to this July have been correct. They have covered my usage.

I do not care if it suits there system or not, my anniversary date is October. Allowing for payments in August and September of nearly £200 I will not owe them anything in October as my usage from now until then is not going to exceed that.

So come 16 October 2013 I will not owe them anything, therefore the payments I have made have covered my usage, what is so hard to understand in that?

If I owe anything in October I will pay it but I wont and 4 days after my anniversary they will be getting another £97.65.

I do not care what their computer says the simple facts are they are wrong, they cannot justify over 4000 units more in consumption.

At the end of the day come October I will be proven right when I do not owe them anything at the end of my first year. I cannot opt out of a monthly direct debit without it costing me £30, so unless I want to further increase their profits, I have to go with monthly DD.

However if it gets to a point where they refuse to reduce the DD even after complaining I will cancel and force them to take me to court for the £30. No court in this land will uphold their case, when I can put my accurate facts on the table and I am certain of that.

If your bank came to you and said we are going to hold £20 a month from your money every month because we think you may go overdrawn, would you stand by and say. Oh that's fine, as long as I get it back later down the line? I think we all know the answer to that one.

It is pretty clear to me, I am not the only that has been put in this position by SP, it seems to be a common problem with them when you look back on this forum and others. So in your view all these people are wrong, I don't think so!

When I prove in October that I owe them nothing, I will prove my payments were correct. They will then have 12 months usage to calculate the next 12 payments from. So in theory they cannot ask for more than that dicided by 12 but I can guarantee they will and it will not just be by a few quid either.