First Utility set payments too low

chris_h16

Hi
Just tried to switch from first utility, and been told we can't because we owe them £566! We pay by fixed monthly direct debit and I give a reading every month when requested, so how can we owe them so much money. I've actually checked back through the bills and can see last September they lowered our payment from £109 to £80 a month. This is coming onto the most expensive time of year and they lowered our payment, doesn't make sense. We have now accrued a mountain of debt to them, I can't move to a cheaper supplier until it's paid back. Are they correct in the way they've handled our account, allowing such a large debt buildup? Am I in my rights to divide the debt into 12 monthly payments?

jaybeetoo

chris_h16 wrote: »

I give a reading every month when requested, so how can we owe them so much money

In return for your readings every month, they provided you with a statement. How could you not notice the debt was increasing?

They were wrong to lower your monthly payments but you should have noticed what was happening before it became a problem.

I've been with First Utility for a few years - they notify you when they are going to change the monthly amount and you can ask them not to change it. At one point I asked them to increase it.

chris_h16

I didn't get statements as such, yes they were in my online account but just kept sending meter readings and paying the DD. It's up to them to manage the payments as to best manage the account not up to me

[Deleted User]

Just one point OP, you do not pay by fixed monthly direct debit.The only thing which is fixed is the tariff kwh rates if you elect to join a fixed one/two year deal.

matelodave

I'm also with FU.

I send them a reading and check my statements every month to ensure that they are using the reading that I give them, that my direct debit is being credited and that any over or underpayment is in line with MY predictions.

I also check my bank account every month to make sure that the DD is going out.

On a couple of occasions Ive had my DD adjusted - downwards and had them refund me some excess credit due to the winter being warmer than I anticipated and therefore I hadn't used as much leccy as I'd estimated.

If you don't keep an eye on what's going on then you cannot blame someone else for your shortcomings. Perhaps FU shouldn't have reduced your DD's quite as much but you should have noticed that less money was going out of your bank account and that it's really really easy to check your FU energy account on line.

chris_h16

I just pay what they charge. It's surely up to them to manage how much they want each month from their calculations of my meter readings, and putting the payment down before winter was stupid. It's up to them to ask for more money

CashStrapped

Surely when you have input an up-to-date meter reading, your online account immediately gives you an up to date account and shows if you are in credit or debit.

This would mean you should have seen the debt on the account growing every time you submitted a meter reading.

Another possible reason may be that you transferred credit out of the account at the end of Summer/Autumn. So when winter rolled around, you had no money saved for high winter bills.

Direct debits are meant to be an average for the whole year. In summer the direct debit will be too high (as energy use is low) and a credit will build up on the account.

In winter the direct debit is too low (because energy use is so high). However this is compensated by the summer credit on the account. This will be slowly used up and so by the time spring rolls around, your account should be at zero!

This idea is messed up if people transfer their summer credit out of the account as there will not be enough to cover winter.

However, returning to my original point. It is down to you to manage your account.

chris_h16

Didn't transfer anything out, and understand the whole buildup in summer for winter.
I don't think it's my job to tell them to put my payments up, companies have always put it up for what they think our usage will be.
Anyway, can they spread the debit over 12 months?

pathtofreedom

They didn't know you would be moving your account before the summer payments might have evened it out again. They also didn't know this has been a colder winter than last year so you'd have the heating on more.

This would have been the same with any company, if you're doing your meter readings every month, and especially if you're thinking of moving deals, you need to keep an eye on your credit.

I'm moving house soon and I don't know yet which supplier they have, but I've been keeping an eye on my statements, luckily I was still 10 quid in credit on the last one. If it does snow at the weekend though I might end up having to pay a few extra quid when I do my final readings but hopefully not.

Can you see if your current company has a different tarrif you can move to if you have found a cheaper deal with someone else. Check if your tied into a contract or not. If you're not you can just look in the summer again once you've paid off the debit and move it somewhere else then.

CashStrapped

Fair enough, going forward a good tip is to submit a meter reading the day after the DD has credited the account. This way the account will always be up-to-date. I would also set a mental debit limit, if it goes below -£50 either adjust the DD or send a one off payment to bring it back to credit.

With regards to paying off the debt, you need to contact first utility to look at payment plans.