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First Utility putting price up

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I'm hoping someone can explain this because I don't understand it. When we got our house in July last year we were on £56 per month to First Utility for both gas and electric. We weren't living in the house until November but used the steamer for wallpaper stripping etc and had built up a bit of credit.

In November or there abouts First Utility decided we weren't paying enough to cover our bills for the rest of the year - slightly unfair as they used the few winter months to calculate this even though we never actually went over our bill - and it's now going to cost us £70pm. Now our contract is ending so we upgraded the tariff to them but at a slightly lower cost it said would cover it - this is to start on 1st Oct. Today they have sent a message saying they're putting our price up AGAIN to £82 starting the 2nd oct! Now I can't tell what price we will be paying when october comes, but in the email with my "personalised" video it says;

"To make sure your fixed Direct Debit payment is right for the
amount of energy you use, every six months we run a
payment review to ensure you’re not building up too much
credit or debit."

We are currently £233 in CREDIT to them, how can they say we're not paying enough? There's only two of us, maybe I'm just bad at maths but I can't see the reasoning behind this?
«13

Comments

  • Nada666
    Nada666 Posts: 5,004 Forumite
    It's only the middle of September. Most people have not put the heating on yet. £233 plus five or six times £12 is not that much to cover winter. Call that an extra £50 a month on top of the 70.

    If you have not being reading your meters yourself to know how much extra you will be using it is hard to call - it is possible you will have a modest usage - it is also possible you will use more.

    Once the heating is on check you usage - it's six of one whether it will be correct - but on the face of it it is not an unreasonable instalment.
  • You could always choose to pay by variable direct debit: they send you a bill every month and then ~10 days later take the precise amount. Then you are *never* in credit with them; but you do have to be able to manage the higher payments in winter and the lower in summer.
    You can change to variable direct debit online, but you *can't* then change back later without calling them.
    My postings reflect my lifetime's experience and my opinion. You are quite welcome to respond with your experiences and option, whether similar or different.
  • System
    System Posts: 178,343 Community Admin
    10,000 Posts Photogenic Name Dropper
    GalaxyStar wrote: »
    When we got our house in July last year we were on £56 per month to First Utility for both gas and electric. We weren't living in the house until November but used the steamer for wallpaper stripping etc and had built up a bit of credit.

    The exam question is 'what was the DD amount based on' in terms of kWhs/year? In its own right a monthly payment is meaningless: it is just a credit on account.

    The problem with choosing a smaller supplier is that these companies cannot afford to have too many debtors on their books. Moreover, as you are a recent occupant of the property the supplier has no personal usage patterns to refer back to so it uses historical consumption as a DD setting guide:


    When you joined XXXXXX, we checked your details on a central database that includes a list of energy records for every address in the UK.

    We were given your Estimated Annual Consumption (EAC) for your electricity and Annual Quantity (AQ) for your gas, based on all the readings from your property over the past two years. So it gives us an accurate picture of how much energy you usually use in a year. We then worked out how much energy you’d use over the year and set your Direct Debit payments.

    As you’re likely to use more energy in the colder months, we add about 10% to your Direct Debit payments if you join us in the autumn or winter, to stop your account falling behind.

    FWiW, I have a credit balance on my account of £300 with a monthly payment of £63 per month. I am not expecting to get much back when my gas/electricity accounts are reviewed in April. The longer that you live in the property the more accurate your monthly DD payments will become.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • If it makes a difference we have to do monthly meter readings ourselves, over the year from being on £70 per month our actual cost of the energy used goes like:

    25 Aug 15 £28.25
    26 Jul 15 £27.45
    25 Jun 15 £35.97
    25 May 15 £32.21
    25 Apr 15 £53.61
    25 Mar 15 £51.64
    25 Feb 15 £66.40
    27 Jan 15 £85.23
    27 Dec 14 £82.45
    27 Nov 14 £52.66

    Only twice have we gone over £70 actual energy usage does this change anything?
  • It is good that you do your own readings and keep track of the energy charges. I do the same. Here's mine
    Energy cost Monthly DD
    September £87
    August £49.58 £87
    July £45.06 £87
    June £56.39 £71
    May £73.96 £71
    April £98.67 £71
    March £124.64 £71
    February £145.57 £71
    January £146.98 £83
    December £132.25 £83
    November £102.25 £89
    October £62.39 £89
    September £41.17 £89

    You can see there is no resemblance to the monthly DD amounts requested by First Utility and the monthly energy charges. They reduced me from £89, to £83 then to £71 per month, when the energy charges were high, and then reverted back to £87 per month in the summer when the energy charges were low.
    After the May bill and before the June payment I was £45.20 in arrears, and now after the September payment and before the September bill I am £135.77 in credit.

    I'll need that credit for the bills coming through in the winter. During that period I have changed tariff twice to get better prices.

    It's swings and roundabouts. It smooths itself out. But if you don't like it you can pay in full every month.
  • Nada666
    Nada666 Posts: 5,004 Forumite
    GalaxyStar wrote: »
    If it makes a difference we have to do monthly meter readings ourselves, over the year from being on £70 per month our actual cost of the energy used goes like:

    25 Aug 15 £28.25
    26 Jul 15 £27.45
    25 Jun 15 £35.97
    25 May 15 £32.21
    25 Apr 15 £53.61
    25 Mar 15 £51.64
    25 Feb 15 £66.40
    27 Jan 15 £85.23
    27 Dec 14 £82.45
    27 Nov 14 £52.66

    Only twice have we gone over £70 actual energy usage does this change anything?
    In your case it does seem you are paying too much. Contact them and ask for the instalment to be reduced or for a refund.
  • System
    System Posts: 178,343 Community Admin
    10,000 Posts Photogenic Name Dropper
    edited 19 September 2015 at 8:01PM
    GalaxyStar wrote: »
    If it makes a difference we have to do monthly meter readings ourselves, over the year from being on £70 per month our actual cost of the energy used goes like:

    25 Aug 15 £28.25
    26 Jul 15 £27.45
    25 Jun 15 £35.97
    25 May 15 £32.21
    25 Apr 15 £53.61
    25 Mar 15 £51.64
    25 Feb 15 £66.40
    27 Jan 15 £85.23
    27 Dec 14 £82.45
    27 Nov 14 £52.66

    Only twice have we gone over £70 actual energy usage does this change anything?

    If you are providing the supplier with actual monthly readings then these added to the property history. With respect, you seem to think that an increased monthly DD equates to a higher price. This is not the case. What the supplier is attempting to do (and it may not be doing it very well) is to achieve at ZERO account balance at the annual review. If you disagree with the increase then speak to the supplier. Most will allow a reduction (within limits) provided you accept that there might be an amount to pay at the annual review. The supplier CANNOT change your tariff prices without telling you first.

    Edit

    This is how First Utility calculate your annual consumption.

    I’ve just joined First Utility - how have you calculated my Personal Projection?

    As a new customer, your Personal Projection is calculated using estimated annual consumption for your home and your chosen tariff rate.
    When you switch to First Utility we are provided with an annual estimate of your electricity consumption which is known as the Estimated Annual Consumption or EAC. The gas equivalent is an Annual Quantity or AQ. This consumption data is maintained by an industry body often referred to as ‘the industry’ which records all meter readings taken from the day your meter was installed. These readings are then fed into a central database and used to create a history of your consumption from which an EAC or AQ is calculated. For electricity this information is updated regularly using the most recent meter readings available. For gas it is updated once a year during the industry’s annual review.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Swipe
    Swipe Posts: 5,608 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I much rather be in credit all year round instead of in arrears as it covers me if we have another 2010-type winter. Either way, you'll get it back when you switch. It's only £10 / month extra
  • My readings display a similar pattern to JBuchanan above but lower in summer. I'm too lazy to copy-paste.


    I've been with them a year now and had very few issues. My DD wasn't taken 1 month but thats it. Have to say I do enjoy paying just £30 a month over the summer. Heating the conservatory raises that to over £100 in the winter. I'm about to renew for another year - maybe 2.
  • I'm interested in how the First Utility monthly variable DD scheme works. Presumably it requires regular monthly meter reads from the customer. Does the company send a monthly email asking for the meter reads, or does the customer have to remember? What happens if the meter reads are occasionally not sent, or sent late?
    mad mocs - the pavement worrier
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