Spark Energy - monthly DD calculation

ElwoodBlues

I switch to Spark Energy about a year ago - onto their monthly DD tariff, which is/was competitively priced, you just had to pay a month in advance, which I'm fine with. All was well until recently.

They set our monthly dd amount at the start of the contract, I think it was based on our previous supplier's bills. It was right about what I thought we should be paying (when averaged out over a year), and close to what we were paying previously.

So far, our account has always stayed in credit, so the monthly payments must be sufficient. Our last bill (1 month ago), stated their estimate of our costs for the next 12 months, and this works out at £2 more than our current monthly payment, which sounds quite reasonable.

But, they've just increased our monthly dd amount by 50%, which doesn't make sense considering their estimates. I've sent them an email requesting details on how they calculated the new amount, but no reply yet.

Is there an industry standard way of calculating the monthly payment? Can Spark just make up any amount they like? Their introductory information states:

"The new amount should cover the cost of electricity and gas we think you're going to use over the next 12 months, without building up too much credit or debt."

Bark01

Check your bill, there should be a personal projection on it that estimates your costs of the next 12 month. Providing your not in credit/debt the DD should be that figure/12.

Sounds like you need to give them a call.

System

Check your Ts and Cs. Starting a new 'credit' year just before the start of the Winter season is not ideal. The smaller energy companies do not like customers to build up a debt and reserve the right to increase the DD payments to 50% during the Winter months. Ovo works in this way.

Former Spark Representative

Hi ElwoodBlues


Normally we'll use your previous usage to calculate the year ahead, but I think a 50% rise sounds quite high especially if your projected usage on your bill is lower than the DD amount we're proposing, so I'd like to have a look at this for you.


If you forward your email to the address on my profile, I'd be happy to help you.


Hope to hear from you soon.


Jenny
Customer Relations Manager

ElwoodBlues

Bark01 wrote: »

Check your bill, there should be a personal projection on it that estimates your costs of the next 12 month. Providing your not in credit/debt the DD should be that figure/12.

Sounds like you need to give them a call.

Check my opening post - there is an estimate on the bill, and their new monthly payment is 50% more than that. I have contacted them, by email, but they haven't replied yet.

Hengus wrote: »

Check your Ts and Cs. Starting a new 'credit' year just before the start of the Winter season is not ideal. The smaller energy companies do not like customers to build up a debt and reserve the right to increase the DD payments to 50% during the Winter months. Ovo works in this way.

They never actually provided any terms and conditions. There are some available to download on their website, but they are for newer tariffs, although probably very similar. The current t & c don't mention anything about how monthly DD amounts are calculated.