Energy Company Refuse Payment by Fixed DD!

JarJar123

Hi, we have recently moved into a house where the energy is supplied by Scottish Power. We decided to stick with them as my dad is also with them and had nothing bad to say about them, and the tariff is reasonable.
However, when it comes to paying they won't allow us to set up a fixed direct debit, only a variable one. I know this is so our bills are more accurate but we don't have the flexibility in our budget to do this. We need the security of having our bills the same each month.
In previous houses we have lived in we have always done this - the energy company has estimated our bill and divided the amount by 12 monthly fixed direct debits, and this has always worked best for us. Scottish Power refuse to do this for us though, saying they can't estimate our bill since they have no history of our usage to base it on. Yet other energy companies have never had a problem doing this for us!
Is this right or should they be able to set a fixed direct debit for us?

Richie-from-the-Boro

Accuracy, the reality of your usage is your responsibility. They will if they can get away with it charge you like everyone on these islands the most they can get away with. I agree with you that a fixed 365 ÷ 30 is the best stable payment system. SP have a CAC [calculated annual consumption mode] payment model, I've been on it with SP and others for many decades, but that does depend on them knowing your consumption which neither you nor they will have for 12 months.

You could, or should have your previous history of kWh consumption. Make them aware via 'customer services free callback page' of your average kWh usage per annum and request a ÷ 12 month fixed payment plan. How well tuned [accurate] that repayment is will depend on you giving regular 6 or so week meter readings to your online account. Best of luck.

molerat

"Variable" DD is a "fixed" monthly payment that can be varied if necessary in the case of under or over estimated energy consumption, exactly the same as you had previously.

backfoot

Whenever I switch, which is often, I provide my annual consumption through the switching site.

That invariably produces an annual cost divided by twelve to become the monthly DD.

In my experience, I do not know any supplier who offers a totally fixed DD and why should they as they need flexibility to recover any additional consumption over the original estimated annual consumption.Which supplier and on what tariff have you previously been offered a fixed DD?

As you are entering into this new contract at the end of the winter period there should be no reason for your consumption to be so high as to trigger a revision to the starting DD.

I don't see what problem you have.

[Deleted User]

The only thing which are fixed are the tariffs if you elect to go on a one or two year fixed deal. I remember Powergen/Eon doing a fixed monthly tariff a good few years ago. It was a subsidised tariff for OAPs and was in fact an all you can eat use as much as you like tariff .Eon quickly changed that when they took over Powergen, my mum used to get her moneys worth and leave the heating on 24/7 ,but since then I dont think any supplier would be stupid enough to market that again. All suppliers will start off at a tariff which reflects your annual consumption but will change it as meter readings come in throughout the year.

System

I can understand a supplier accepting a 'fixed' DD where previous usage can be evidenced but in this situation the OP is in a new house. They have no evidence of their usage in this house to provide as evidence. Things could be totally different in this house, electric heating instead of gas CH, same for cooking, house has different thermal efficiency etc.

backfoot

!!!!!! wrote: »

I can understand a supplier accepting a 'fixed' DD where previous usage can be evidenced but in this situation the OP is in a new house.

I can't because consumption of energy is variable.For many it will be within a tolerance where the DD does not need to change but from an administrative point of view a variable DDis the best arrangement for everyone's benefit.

For example, a different payment/refund method will be needed for a final bill.

If you don't like DD choose another payment method.

I am not aware of any supplier offering a totally fixed DD so it's a rather academic argument.

Cardew

I am not sure I understand the OP's problem.


If you have no history of consumption, then a fixed DD is the same as a variable DD. You have to guess the amount for a fixed DD and in the same way you have to guess the initial amount of a variable DD. In either case the DD will need to be adjusted if the amount is insufficient; in the case of the variable DD the company does the adjustment for you.


In essence the OP wants a Standing Order which not all tariffs accept.

undaunted

I was also wondering if you meant you wanted to set up a standing order rather than a direct debit?


If so they can't really stop you doing so but it may mean that you end up on a standard tariff rather than a direct debit one. If you don't like it all you can really do is try elsewhere I'm afraid

macman

A fixed DD is in effect an SO, and I know of no supplier who will accept such an arrangement on a competitive tariff. Almost all the leading discount fixed deals require monthly DD payment.
Your reluctance is illogical-should they change your DD without informing you beforehand then you simply invoke the DD guarantee and your bank will immediately credit you the unapproved payment.

Richie-from-the-Boro

won't allow us to set up a fixed direct debit, only a variable one. I know this is so our bills are more accurate but we don't have the flexibility in our budget to do this.

The O/P answered their own question, they are already aware that their "bills are more accurate" but the O/P doesn't want accurate bills they hope to artificially lower their monthly payment, hence the reason SP refused them. In the event that they find themselves in credit-excess they are allowed to go to their e-account and reduce their monthly direct debit themselves. A very risky strategy if they use a menu of E7 etc tariff.