Direct Debit for Utilities NOT cheaper

tabouleh

Since signing up to DDs for utilities over 2 yrs ago, I simply do not find it cheaper, although you're supposed to get discounts etc. compared with paying quarterly by cheque. I used to have money accumulating in my current account, but now it's always on a steady low balance. That's my real experience.

I have twice tried to get refunds on the credit balance on my Southern Electric account and so far failed, because the process is so long-winded - submit a meter reading, then some half-wit will send you an email saying your credit has changed, so I reply send me a refund of the adjusted amount, then another idiot replies that I need to ask again in 5 days' time and submit a new meter reading...and round and round it goes!

I am going to switch energy suppliers and go back to quarterly cheques. I don't want energy companies dipping into my account for free cash flow. I also think it's ridiculous that they can increase the amount whenever they feel like it, without your permission.

System

tabouleh wrote: »

Since signing up to DDs for utilities over 2 yrs ago, I simply do not find it cheaper, although you're supposed to get discounts etc. compared with paying quarterly by cheque. I used to have money accumulating in my current account, but now it's always on a steady low balance. That's my real experience.

I have twice tried to get refunds on the credit balance on my Southern Electric account and so far failed, because the process is so long-winded - submit a meter reading, then some half-wit will send you an email saying your credit has changed, so I reply send me a refund of the adjusted amount, then another idiot replies that I need to ask again in 5 days' time and submit a new meter reading...and round and round it goes!

I am going to switch energy suppliers and go back to quarterly cheques. I don't want energy companies dipping into my account for free cash flow. I also think it's ridiculous that they can increase the amount whenever they feel like it, without your permission.

Under current Ofgem supplier rules, discounts may only be given for DD payments and dual fuel contracts. It doesn't follow that suppliers that offer these discounts will give you the cheapest fuel.

The aim of regular payments is one of attempting to get a Zero balance at the end of a contract period. Suppliers have to notify you that they intend to change a monthly DD. If you are happy paying variable amounts on a quarterly basis then that is your decision. Not all suppliers offer quarterly billing so you may lose out on the cheapest deals on the market.

Finally, and I am sure that you know this already, DD payments are nothing more than payments made on account which are credited against the energy used. Your bill is based solely on the tariff that you have signed up to and the amount of energy that you use. Most people are happy to see an increasing credit balance in the summer as this offsets the cost of high winter usage.

[Deleted User]

You re trying to say that standard/variable tariffs are not cheaper than a one year fix on direct debit ?. I think the percentage gap has been widening to at least 33% and more cheaper by going for a one/two year fix.Prices have been lowering and may still lower more yet. Maybe you should examine what the kwr rates/standing charges you are paying with SSE.. In my example I m paying 8p/kwh electric on a BG deal when their standard tariff is 13p/kwhr and 2.6p/kwhr gas( no bargain ) when their standard tariff is 4p/kwh..My BG STC is cheaper too on a fix at 19p against 26p .
The dual fuel discounts are the same for fixes and standard tariffs. You need to forget about the direct debit amount and get your annual usage more or less correct then get the cheapest kwh /standing charges balance correct. Don t go back to standard/variable or you will be throwing money away.
I did see a cheap EDF one year fix which did nt discriminate about cheque payers tho so maybe they are worth checking out.

tabouleh

"Most people are happy to see an increasing credit balance in the summer as this offsets the cost of high winter usage."

Maybe this is why it doesn't suit me. I'm not one of those people who need a company to store my money for later because I will uncontrollably spend it if it's in my bank account. I'd rather pay what's owed at the time it's due.

tabouleh

I just know that when I was writing quarterly cheques, money would always accumulate in my account and i'd be shifting amounts regularly into savings accounts. When the bills arrived, I always had enough in the current account to pay them. However, since the DDs began, my current account is always at a steady low. I never have enough to move something over to savings. The bills don't actually seem any higher either. It feels like I'm being told that I am saving so much by doing DDs, when in fact I have never seen the supposed saving; it's the opposite.

Cardew

tabouleh wrote: »

"Most people are happy to see an increasing credit balance in the summer as this offsets the cost of high winter usage."

Maybe this is why it doesn't suit me. I'm not one of those people who need a company to store my money for later because I will uncontrollably spend it if it's in my bank account. I'd rather pay what's owed at the time it's due.

With respect, you have changed tack.


The title of this thread and thrust of your opening post was that payment by DD is NOT cheaper. Now you are simply stating what suits you personally.


The majority of discounts for DD are not large these days, although they dwarf any loss of interest on a current account.
However most of the cheap tariffs insist on payment by DD - understandably to keep their cost down.


Whilst any company(not just energy companies) can technically
'increase the DD amount whenever they feel like it, without your permission', they have to give you advance notice of any increase, and you can dispute that increase if you feel it is not justified.


Many millions of people have several DDs by choice, IMO it is by far the easiest method of payment and I use it even where there is no discount(and no penalty) e.g. Water, Council Tax, phone, credit card etc etc.


Incidentally if you are 'not one of those people who need a company to store my money for later because I will uncontrollably spend it if it's in my bank account.' why are you bothered if your DD increases a little?

tabouleh

I guess I'm "bothered" because I think they've got a bloody cheek to dip into my money and increase their pay when they feel like it, but when I want my money back that is sitting there in their account (I would say sitting there idle, but we know they benefit hugely from the free cash flow we, the customers provide for them free of interest), it is near impossible. It's so much hassle that it's hardly worth doing and increases my hassle/stress levels, like now, that I think, oh bu**** it all; I'll keep myself warm over a fire in a dustbin.

I just wish energy was re-nationalised because it is NOT fun shopping around for cheaper tariffs, it's a pain in the a*** and I think their final bill charges are also b*****ks, yet apparently everything is fair and I'm saving a fortune...only I'm not.

System

tabouleh wrote: »

I guess I'm "bothered" because I think they've got a bloody cheek to dip into my money and increase their pay when they feel like it, but when I want my money back that is sitting there in their account (I would say sitting there idle, but we know they benefit hugely from the free cash flow we, the customers provide for them free of interest), it is near impossible. It's so much hassle that it's hardly worth doing and increases my hassle/stress levels, like now, that I think, oh bu**** it all; I'll keep myself warm over a fire in a dustbin.

I just wish energy was re-nationalised because it is NOT fun shopping around for cheaper tariffs, it's a pain in the a*** and I think their final bill charges are also b*****ks, yet apparently everything is fair and I'm saving a fortune...only I'm not.

I do not mean to show any disrespect but what you are posting is becoming a rant. Every £ that I pay to the supplier shows as a credit on my energy account. This money is not going to employees as additional pay, and there are no extra charges on Final Bills. That said, you have the right to ask for any credit to be refunded to you. Most suppliers will ask for an actual meter reading and they may make the refund conditional on a monthly DD payment increase. As I said earlier, suppliers try to achieve a Zero account balance at the end of the contract term.

If you are not saving any money at the moment, then I suspect that you haven't chosen the cheapest supplier/s. Looking back over the past 12 months, I have switched 5 times; i have reduced my energy costs by over £150 per year and received £90 cash back. My present suppliers do not pay third party sites any referral fees, offer me any discounts but they do give me the cheapest energy deal provided I pay them by DD.

macman

Refuse to pay by DD and you will screen out most of the cheapest tarrifs, which are only available for customers paying by DD. Suppliers cannot just 'take money when they feel like it', they are obliged to inform you in advance of any change to your DD amount, and if they do not then you can simply invoke the DD guarantee to get an immediate repayment from your bank.
If you are unable to have money in your account without spending it that is hardly the supplier's fault-how do you then budget for the much higher winter billing that you will get without using DD?

giraffe69

I just wish energy was re-nationalised because it is NOT fun shopping around for cheaper tariffs,

Much better to have no choice at all! I don't know whether my supplier is the cheapest or not but I have moved from time to time. My current supplier allows me to adjust my DD if I wish.
If you want to pay your bills each quarter its no problem. Simply make sure you are on a tariff which allows this but be aware, as said above, that some of the cheaper tariffs won't be available.

Autumnella

If you prefer to pay for the energy you've used only why not see if your supplier offers a quarterly direct debit and see if you still get a discount by paying by direct debit? If not switch to a supplier who does offer this.

You're probably better off calling to request a refund. It sounds like they need a reading on the day of request but not picking your e-mails up until a few days after.