What to do with built-up credit

StinkerPinker

I'm now in the midst of switching from British Gas to nPower. My "year" in British Gas ran from May to May and I paid by fixed direct debit. Consequently, over the summer I've built up a cushion of credit just shy of £500.

Once my nPower account is up and running, should I prime it with the remains of this cushion (after Final Bill deductions), or just emerge from the winter and spring quarters with a humongous debt to nPower instead? Would they stand for that without putting my DD through the roof, even though it would come right if they waited until October again (hopefully!).

Thanks.

Andy_WSM

Me personally - If I was changing supplier this time of year and destroying any credit I'd built up for Winter I'd make a one-off payment to the new account and put it in credit so I didn't have to spend the Winter worrying about how much debt I was getting into!

StinkerPinker

Yep, I think you're right, Andy. That's what I'll do then, if the nPower billing system allows. I've been seeing posts about how error-prone their system is compared to, say, BG, but too late now! Just have to keep everything crossed!
Thanks, Andy.

matelodave

I'd put it in the bank, get a bit of interest on it - don't spend it though, and it's then available to draw on if they can't get their billing sorted out.

That what I'm going to do as our change is in progress at the moment and, because we are all electric, my winter bills can be up to ten times my summer ones (last December we used 1500kw but in May it was only 147kw) it evens out over the year but the DD system really has a struggle to cope and tends to go up & down like a yo-yo. I expect it to be slightly worse this year as my new contract won't start until early November so the early bills will look quite high.

My estimate for the past 12 months was out by just 138kw = £15.18 however due to the fluctuating DD they'll actually owe me about £150 when the account closes. Ours started at £82, increased to£119, then down to £85 and now they've just dropped it to £52 even though winter is right on our doorstep, so they don't really know what they are doing - my estimate was £78 all through.

I do read the meter weekly and give the supplier a reading on 1st of every month so I can keep track of what's going on but I don't argue about the dd unless they get silly about it by cranking it up too high as I know it will come down again in the summer.

molerat

+1 for putting it in the bank. Why give the (already over rich) energy company the benefit. Use spreadsheets, regular meter readings and forecasts, take control of your finances do not let them control you.

Dan-Dan

StinkerPinker wrote: »

I'm now in the midst of switching from British Gas to nPower. My "year" in British Gas ran from May to May and I paid by fixed direct debit. Consequently, over the summer I've built up a cushion of credit just shy of £500.

Once my nPower account is up and running, should I prime it with the remains of this cushion (after Final Bill deductions), or just emerge from the winter and spring quarters with a humongous debt to nPower instead? Would they stand for that without putting my DD through the roof, even though it would come right if they waited until October again (hopefully!).

Thanks.

which are ?

StinkerPinker

Well, there will be a penalty of £30 for leaving the tariff I'm on before scheduled expiry in Feb 2014. Then there is the November bill coming up, versus the november direct debit, plus the extra for any usage between that bill and the actual day of change of supplier.

But as for the £30 penalty, I'll be getting £25 back as a cash bonus for switching "today", as the website put it, so not too much of a hit.

StinkerPinker

matelodave - yes, I find that my gas usage can vary by a factor of 10 too. I use gas for heating, hot water and cooking. In high summer with the heating turned off, I was using 2 units a day - 1 for cooking, 1 for hot water.

My heaviest use in deep winter in the snow and ice was 22 units, but more often winter is in the high teens or 20 units per day.

Like you, I am also in the habit of giving a meter reading to both my gas and electricity suppliers on the first of each month. I found that BG had a habit of wanting to drop the DD too far if a cushion built up, so that I just knew I'd end the year with a large shortfall. I would always override their recommendation and set my own amount, based on my own records of yearly usage.