Variable Direct Debits

Coedy

Hi all.

Today I got help with the latest big switch event from one of the Eon Reps and asked about variable direct debits, I spotted on another thread that EON remove the £35 per utility discount on standing charges for people paying this way which makes me not save as much as I initially thought.

Does anyone know what companies on the Cheap Energy Club site offer the actual savings suggested on there for people wishing to pay variable DD?

I've never switched before (only been in the house 2years and on the standard BG tariff! :eek:) and don't want to end up not saving as much as expected given I've punched in my exact Gas and Electricity usage

For example(hypothetically)
I could save £280 with EON on the bigswitch, but this would be reduced by £70 making it £210. :undecided
But I could save £230 with EDF and maybe they dont mess with the prices for variable DD, meaning it could actually be the better deal overall. :beer:

So if anyone knows a list of companies that don't subtract discounts for variable direct debits maybe we could build up a list? :money:

giraffe69

EON (and I guess others) set a rate for the DD and then amend it as your consumption changes. I've found them good at changing it downwards as and when required and it has been a painless exercise. Is having the variable DD that important?

MSE_Dan_L

Hi Coedy

It is relatively uncommon for suppliers to allow you to pay by variable direct debit each month. However quarterly direct debit where the amount is variable is much more common.

If you filter your payment type on cheap energy club you'll be able to see the costs of tariffs that allow you to pay by quarterly direct debit.

In terms of the Big Switch Event 3 tariffs, you're correct in that Eon offer a discount to the standing charge if you pay by a fixed monthly direct debit (although if you provide up-to-date readings its online system allows you to amend this by upto 20%). However Green Star's QDD cost is the same as its monthly direct debit cost.

For more on this and why MDD is cheaper, you might be interested to take a look at our guide.
http://www.moneysavingexpert.com/utilities/lower-energy-direct-debits#directdebit

I hope this information helps.

Cardew

Not certain what you mean by 'variable direct debits'.

Most companies have a Direct debit scheme where they initially fix the sum and vary this amount up or down depending on the balance of your account and predicted spend.

There are a couple of companies that take exactly the amount you have been billed for.

Coedy

Sorry, should have explained better. We give our own meter readings and BG spits out the monthly bill, that amount is then taken from our joint account (For example, BG bills us for £40.44p, on our billing date exactly £40.44 is taken from our account)

It's just the fact it's what we know and have been using the last 2 years to keep our finances in check.
Seeing our monthly payments creep up coming out of summer reminds us to chuck on a jumper instead of cranking the thermostat for a little longer, and because it's so cheap in the summer we have more money to go out and do things while the weather is nice.

That and keep seeing horror stories about people randomly getting letters through stating "Due to a technical error you owe us £600" etc. Or people saying "They wont let us lower/raise our DD and ive had to phone hundreds of times to get it altered" etc.
If I know what I've used, told them how much, they bill me for what Ive used and then they take how much theyve billed us for then surely that cuts out a load of colateral risk for myself.... Looks like I'm going to have to have a really long think about what to do... even if its a case of swapping to a different BG tariff but keep the "Energy Smart" bolt on that lets me pay for what I use...

Nada666

If you have the budget to pay by variable monthly or quarterly direct debit over winter then you have the budget to pay and wait for a revised 'fixed' monthly instalment to be adjusted again.

Or just stick with quarterly direct debit versions of the tariffs and pay the appropriate price - other comparison sites than the CEC make it easier to explore different iterations.

Shrimply

Hi Coedy,

I, like you, like to be able to manage my own money. And much prefer a variable direct debit. It also means when I want to switch I don't have to worry about trying to get my money back from the company.

It's very confusing when people refer to fixed monthly direct debits as monthly direct debits, especially when a company also offers a variable monthly direct debit....

I thought it was particularly wrong that the E.ON rep told you about being able to pay by variable direct debit, without mentioning the increased cost. Could have led to a not very nice surprise.

If it helps in your search, First:Utility are generally pretty competitive with their pricing and will allow you to pay with a variable monthly direct debit without penalisation. Their customer service isn't the fastest to get back to you but are helpful when they do. Apart from that I don't' have any complaints and their website is nice and easy to use.

How it can possibly cost a company more to generate a variable direct debit bill compared to a fixed direct debit bill is a bit beyond me. And to have to pay £70 for the privilege is ridicules.

alderpoint

Nada666 wrote: »

If you have the budget to pay by variable monthly or quarterly direct debit over winter then you have the budget to pay and wait for a revised 'fixed' monthly instalment to be adjusted again.

I much prefer MY money to be sitting in MY account offsetting MY mortgage, than sitting in the energy co's account and earning THEM money.

I've been with First Utility for quite a few years now, paying by variable direct debit, i.e. they send me a bill each month, and then two week later they take the full amount due by direct debit. This months payment will be £37.24.

JJ_Egan

My preference is to pay the DD based upon my yearly average .
That means i am overpaying in the warmer months but building up a cushion for the more expensive months .
With current interest rates the thought of me earning the pathetic interest does not enter my mind .
As i am with OVO i get 3% on my credit balances and come the end of winter if the DD is to high i can drop it and even withdraw part/all of the excess .

Coedy

Glad I'm not alone in thinking like this.

I'll have a look at First Utility and have a think, the name doesnt fill me with confidence but if its that or a standard rate BG tariff its pretty obvious what I should do...

Coedy

JJ_Egan wrote: »

My preference is to pay the DD based upon my yearly average .
That means i am overpaying in the warmer months but building up a cushion for the more expensive months .
With current interest rates the thought of me earning the pathetic interest does not enter my mind .
As i am with OVO i get 3% on my credit balances and come the end of winter if the DD is to high i can drop it and even withdraw part/all of the excess .

I did also consider OVO, partly for that 3% and partly because (sad I know) because the owner of OVO saved the Marussia F1 team...:rotfl:

It's not about the interest for me though, Its just if my bills are cheaper in the summer I can spend that money out and about the place doing stuff and over the winter when its miserable anyway I can stay in.