Doing this for the first time - where to start?

modsandmockers

macman wrote: »

Most of the cheapest tariffs require monthly DD payment, though not all

Are you completely sure of that? I am happy to stand corrected, and it is only recently that I have noticed that the three suppliers with whom I have dealings make no distinction between their prices for monthly fixed DDs (which can be changed at any time if the supplier so decides), and quarterly variable DDs which simply pay the full amount of each quarterly bill. On the Tariff Information Label, check whether the required payment method is 'Monthly (Fixed) Direct Debit', or simply 'Direct Debit'.

Another important point is that bills based upon estimated meter readings are extremely unreliable and should be avoided. Most suppliers will either ask the customer for meter readings prior to generating a bill, or will re-calculate the bill if the customer submits actual meter readings as soon as the estimated bill is received.

The_Laisy_Daisy

Thanks for all the useful info! I'm currently on hold to them again. They're driving me a little mad (well, more so than before) and I haven't even signed up yet haha! :-)

The_Laisy_Daisy

modsandmockers: if you're interested, I got the discount for a variable quarterly DD as per your suggestion. The man on the phone didn't offer it though. He made it sound as though I would have to pay monthly and it wasn't until I asked if the discount would still be applied that he confirmed.

Thanks everyone for your input, I felt confident enough to speak like I had a clue.

Just hope I haven't been ripped off!

Nada666

Don''t forget that with quarterly Direct Debit payments you do have to make sure you read your meters and have saved up enough to pay for a winter's quarter on demand. If you don't prepare and have three months (and more) available that month in your bank account you can be bumped off the cheaper tariff and rebilled on a higher tariff. With monthly Debits any catch-up will at least be spread-out interest free at the original price.

I'm not saying it is not a very good option - but you do need to know what you are doing and to be able to afford the seasonal payments.

System

Each to their own. Monthly DD payments are not to blame for estimated bills. The truth is that this is down to energy companies not using actual meter readings or customers not bothering to read their household meters and/or monitor their account. A quarterly bill paid for by a variable DD may attract a DD discount but it does require a high degree of financial willpower not to dip into the pot for other purposes.

The_Laisy_Daisy

It's all new to me! And I'm far too easy to confuse at the best of times!

Once my internet is arranged I'll be getting YNAB so hopefully if I put what we were previously paying monthly into a category for utilities and let any extra money rollover, this should cover the winter payment.

Wishing myself luck and willpower...

System

The_Laisy_Daisy wrote: »

It's all new to me! And I'm far too easy to confuse at the best of times!

Once my internet is arranged I'll be getting YNAB so hopefully if I put what we were previously paying monthly into a category for utilities and let any extra money rollover, this should cover the winter payment.

Wishing myself luck and willpower...

Yes, and no. As mentioned by another poster above, the key to good energy account management is frequent monitoring of the numbers on the dials. I see the secondary advantage of monthly DDs is that it encourages me to look at least once per month at the energy that I am using. I have just switched (again) and with a July start, I expect my energy account to run into debit - probably in February/March - before the debit reduces close to zero balance in July. With a monthly DD, most energy companies will accept a small debit balance.

If you anticipate paying, say £800 pa for energy, then putting £67 per month away from now on ( a July start) will not necessarily cover your winter bills. You will have to find some additional money in early 2016, with a smaller bill to follow covering the period April through to June £216.

Just because one poster doesn't like monthly DDs, it doesn't mean that the millions of people who choose to pay this way are in the wrong. The same protections are there for all DDs and we only pay for the energy that we use.

modsandmockers

The_Laisy_Daisy wrote: »

modsandmockers: if you're interested, I got the discount for a variable quarterly DD as per your suggestion. The man on the phone didn't offer it though. He made it sound as though I would have to pay monthly and it wasn't until I asked if the discount would still be applied that he confirmed.

Thanks everyone for your input, I felt confident enough to speak like I had a clue.

Just hope I haven't been ripped off!

I'm flattered that you thought about what I said, and pleased that you have already jumped one of the hurdles which the energy companies routinely place in their customers' way. As another poster has pointed out, if you are planning to operate your own monthly payment plan then, at least for the first year, you will have to monitor it closely and be prepared to make adjustments. You may well have to make some top-up payments in year one, but by year two you will have a better idea of your annual consumption (which will enable you to refine your calculation of an average monthly cost). And, yes, it is vital that you avoid paying any bill which is based on an estimated meter reading. Energy suppliers will either ask you for a meter reading before issuing an estimated bill, or else they will recalculate their estimated bill if you submit an actual reading as soon as you receive the estimated bill. The willpower issue will be resolved if you open a current account which will be used only for your energy bills, and then pay in your chosen monthly payment by standing order from your main account. Some newly-opened accounts offer a free overdraft for a limited time, which might help you during year one.

modsandmockers

Hengus wrote: »

Just because one poster doesn't like monthly DDs, it doesn't mean that the millions of people who choose to pay this way are in the wrong. The same protections are there for all DDs and we only pay for the energy that we use.

Unfortunately, most of those millions don't know that they are 'making a choice', and they don't know that other options are available. They also don't understand the protection which the DD guarantee provides. In my experience, most energy customers regard the apparently random fluctuations in their monthly DD payments as completely inexplicable and unavoidable. I'm hoping that Laisy Daisy will be able to avoid falling into the energy suppliers' trap.