Setting of DD amounts with new supplier

Biggles

The last couple of times I changed suppliers, my estimated usage has provided the basis for my monthly DDs with the new supplier, occasionally adjusted as further meter readings are provided.

However, I have read on here that suppliers have access to historical records of usage; does this mean that they may unilaterally adjust your DD amount upwards (based on historical use, not current meter readings)?

The reason I ask is that my fix is coming to an end, and the year just gone has, for a one-off reason, been very expensive in terms of gas usage. I would want my payments for the forthcoming year to be based on my estimated gas consumption, not on the previous twelve months.

modsandmockers

Biggles wrote: »

The last couple of times I changed suppliers, my estimated usage has provided the basis for my monthly DDs with the new supplier, occasionally adjusted as further meter readings are provided.

However, I have read on here that suppliers have access to historical records of usage; does this mean that they may unilaterally adjust your DD amount upwards (based on historical use, not current meter readings)?

The reason I ask is that my fix is coming to an end, and the year just gone has, for a one-off reason, been very expensive in terms of gas usage. I would want my payments for the forthcoming year to be based on my estimated gas consumption, not on the previous twelve months.

Biggles - the last thing you want to do is build up a large credit balance with an energy supplier! The solution is to avoid monthly payment plans altogether. Find a tariff which will allow you to pay 'whole of bill' via a variable direct debit authority. Many suppliers will charge slightly higher prices, but some do not (EDF and FirstUtility spring to mind). The variable DD option is not the same thing as 'pay on receipt of bill'.

Biggles

Yes, my main aim, obviously, is to avoid a credit balance; I usually run at a reasonable debit balance and settle up at the end.

Hence I'm trying to find out whether any (or all?) suppliers use historical records in preference to my estimate + current meter readings.

Yes, I'd be just as happy paying the bill monthly or quarterly but these tariffs are never the cheapest.

modsandmockers

Biggles wrote: »

I'd be just as happy paying the bill monthly or quarterly but these tariffs are never the cheapest.

You pays yer money and you takes yer choice! It's surely worth checking out the difference in cost...

I find that paying by variable direct debit is so much simpler to monitor and manage that I shall never again sign up to a monthly payment plan.

Biggles

modsandmockers wrote: »

I find that paying by variable direct debit is so much simpler to monitor and manage that I shall never again sign up to a monthly payment plan.

I find them all perfectly simple to manage, but was hoping someone could answer my original question: Do energy suppliers have access to historical usage (with any previous supplier) and use it to set DD amounts?

System

Biggles wrote: »

I find them all perfectly simple to manage, but was hoping someone could answer my original question: Do energy suppliers have access to historical usage (with any previous supplier) and use it to set DD amounts?

On switching the new supplier is given the Estimated Annual Consumption (EAC) and Annual Quantity (AQ) for electricity and gas for the past two years. How it uses this information is up to the supplier. Some make it clear in their ts and cs that this data is used when calculating future energy projections and setting revised DD amounts.

dogshome

These comments are based on EDF procedures
Your supplier has an 'Annual Accounting' year, which probably won't be based on the date you joined them - The date of yours may be on the bill, but if it's not phone and ask.

The D/debit demands will not be based on current year, but on the previous year as that is the last 'Account Year' period the supplier has complete figures for.
Depending on the dates of your unusual high demand and your accounting year, the high consumption period could be haunting your D/Debit payments for well over a year.

Of course if you Switch supplier, that supplier will base your D/D's on whatever consumption figures you give them

System

dogshome wrote: »

Of course if you Switch supplier, that supplier will base your D/D's on whatever consumption figures you give them

For a period of time 'yes'; however, I have just had a ruling from the EO that a supplier CAN use 3 months of winter usage to recalculate the DD based on 'X kWhs/3 times 12' equals revised annual usage. The justification for a proposed 25% DD increase after 3 months was 'the supplier has a licence obligation to ensure that a customer does not go into debt'.

As I posted in another thread, the implication of the EO's decision is that anyone switching suppliers in the cold months of the year cannot complain if their monthly DDs increase. The days of 'it will all balance out over 12 months seem to be no more.'

modsandmockers

Hengus wrote: »

For a period of time 'yes'; however, I have just had a ruling from the EO that a supplier CAN use 3 months of winter usage to recalculate the DD based on 'X kWhs/3 times 12' equals revised annual usage. The justification for a proposed 25% DD increase after 3 months was 'the supplier has a licence obligation to ensure that a customer does not go into debt'.

As I posted in another thread, the implication of the EO's decision is that anyone switching suppliers in the cold months of the year cannot complain if their monthly DDs increase. The days of 'it will all balance out over 12 months seem to be no more.'

If it's true that 'the supplier has a licence obligation to ensure that a customer does not go into debt' then how can the customer benefit from a monthly payment plan? Are the marginally lower prices really worth the frustration of waiting weeks or months to get the credit balance refunded whenever you switch supplier?

victor2

Hengus wrote: »

For a period of time 'yes'; however, I have just had a ruling from the EO that a supplier CAN use 3 months of winter usage to recalculate the DD based on 'X kWhs/3 times 12' equals revised annual usage. The justification for a proposed 25% DD increase after 3 months was 'the supplier has a licence obligation to ensure that a customer does not go into debt'.

As I posted in another thread, the implication of the EO's decision is that anyone switching suppliers in the cold months of the year cannot complain if their monthly DDs increase. The days of 'it will all balance out over 12 months seem to be no more.'

That might explain why my supplier (EDF) proposed reducing my DD amount a few months back, When I had calculated it to be 1/12 of my annual predicted cost. I didn't let them reduce it and am still on track to cover my annual cost.
Similarly, I know a new E.On customer who had her DD increased significantly in the summer, mainly because her "annual review" date (when they aim for a zero balance) is February, when a customer on the good old even monthly payments plan is likely to have the biggest debit balance. It should even out after February with a reduced DD, as the customer will have effectively built up enough credit so that her account never has a debit balance.

System

modsandmockers wrote: »

If it's true that 'the supplier has a licence obligation to ensure that a customer does not go into debt' then how can the customer benefit from a monthly payment plan? Are the marginally lower prices really worth the frustration of waiting weeks or months to get the credit balance refunded whenever you switch supplier?

The exact words used were " XXX is obligated by its license conditions to ensure that it does not take action that would leave its customers in debt. Whilst I accept that the EAC and AQ ratings show lower usage, this does not mean that this will be the usage in the property. XXX is entitled to come to its own conclusion based on the evidence of your actual consumption that it has.'

Make of that what you will. I switched suppliers within days of XXX coming up with its wacky annual projection. I had joined them in February: paid them 4 monthly DD payments and was £10.02 in credit.

I am currently over £250 in credit with my new supplier.