Energy prices increased despite lower tarriff

50Twuncle

I managed to get signed up for Scottish Powers ONLINE ENERGY FIXED PRICE MARCH 2016 deal but my DD has increased from £32 to £54 - This is despite both Gas and Electricity prices reducing considerably in the mean time (I was on FIXED PRICE APRIL 2015 NSC) - unless the Standing charge cancels out any gains from the lower tarrif ??
Can anyone explain why this should increase my costs ?

macman

Because your estimated usage (as seen by their system) is higher than previously.
SC/NSC is a red herring-unless you a very low user, they cancel each other out and it makes just a few pence difference per year.
What matters is the annual cost, not the level your DD is initially set at.

JJ_Egan

You have meter readings and a tariff so you can work out how much your costs are .

50Twuncle

My estimated annual costs add up to £484 which is acceptable - but if I do 12 * 54 - that adds up to £648 - so how do they estimate an monthly payment ?

Pagett

50Twuncle wrote: »

My estimated annual costs add up to £484 which is acceptable - but if I do 12 * 54 - that adds up to £648 - so how do they estimate an monthly payment ?

Most suppliers simply divide the estimated annual cost by 12 (although some suppliers will scope it, especially if you join winter time)

They also usually allow for previous overpayments, or underpayments, when reassessing the monthly amount, in order to bring the account back into balance.

50Twuncle

Pagett wrote: »

Most suppliers simply divide the estimated annual cost by 12 (although some suppliers will scope it, especially if you join winter time)

They also usually allow for previous overpayments, or underpayments, when reassessing the monthly amount, in order to bring the account back into balance.

I have emailed SP to ask why they have overestimated my billing (I have been with SP for 6 years and our annual consumption has remained pretty stable throughout this time.....)

Pagett

£32 a month is very low for gas and electricity combined.

What annual usage do you assume?

How does this compare to the last annual usage statement the supplier would have provided you with?

50Twuncle

Pagett wrote: »

£32 a month is very low for gas and electricity combined.

What annual usage do you assume?

How does this compare to the last annual usage statement the supplier would have provided you with?

We are "careful" - £32 per month dual fuel is a genuine figure
Annual useage is assumed the same as previous years (about 5 units per day electricity and 10 per day gas - on average through out the year)

Pagett

^^^^^^^^^^

Pagett wrote: »

How does this compare to the last annual usage statement the supplier would have provided you with?

Nada666

50Twuncle wrote: »

We are "careful" - £32 per month dual fuel is a genuine figure
Annual useage is assumed the same as previous years (about 5 units per day electricity and 10 per day gas - on average through out the year)

[STRIKE]Which costs £600-odd and not £32 per month. So their charge seems more correct than your estimate.[/STRIKE]
Never mind. Prices out, they have come down. Still, your usage on the previous tariff should cost far more than what you claim to have spent.

Pagett

50Twuncle wrote: »

We are "careful" - £32 per month dual fuel is a genuine figure
Annual useage is assumed the same as previous years (about 5 units per day electricity and 10 per day gas - on average through out the year)

I don't know which supply region you are in, but in the East Midlands, even that low usage would cost:

FIXED PRICE APRIL 2015 NSC (I assumed online) - £551p.a. (£46 p.m.)

ONLINE ENERGY FIXED PRICE MARCH 2016 - £430 p.a. (£36 pm)

So if you've only been paying £32 for the past 12 months, there's probably quite a big debt now owing, that would be included in the latest monthly payments.