Quadrupling my Direct Debit - what can I do?!?!

Becsdawson

I have contacted my energy company a few months ago telling them I was concerned about the debt on my account, that I had provided them with regular readings and that I am not an the cheapest tariff - they came back to me with a one day only offer for a lower tarrif which I unfortunately missed because I was working and it completely went out of my head. They have emailed me today saying I have £1200 debt and that they are increasing my dd to £210 a month (4 x what it was). My annoyance is this was done in what they called a regular review of my DD which, if it had been regularly reviewed would have picked up a while ago that it wasn't covering things. Is there anything I can do - I want to change suppliers but guess that is unlikely without paying off the full amount in one go. Any advice gratefully received

footyguy

Becsdawson wrote: »

I have contacted my energy company a few months ago telling them I was concerned about the debt on my account, that I had provided them with regular readings and that I am not an the cheapest tariff - they came back to me with a one day only offer for a lower tarrif which I unfortunately missed because I was working and it completely went out of my head. They have emailed me today saying I have £1200 debt and that they are increasing my dd to £210 a month (4 x what it was). My annoyance is this was done in what they called a regular review of my DD which, if it had been regularly reviewed would have picked up a while ago that it wasn't covering things. Is there anything I can do - I want to change suppliers but guess that is unlikely without paying off the full amount in one go. Any advice gratefully received

Unless you have been sent a formal demand (e.g. a bill) for money owed, you do not actually have any arrears.

So, if you are so inclined, consult a comparison site and switch away

BUT...

if you do switch, you will be sent a final bill, which if your meter readings are up to date and accurate, sounds like would be in the region of £1200 which you will need to pay promptly.

If you don't want to pay off the amount in one go, I suggest you remain with the current supplier who are effectively giving you an interest free loan.

But you can still transfer to the lowest tariff with the current supplier, without worrying about getting a £1200 demand.

spiro

So you were paying £52.50pm/£630 pa on your original DD. Assuming they have just done your annual DD review it means you have used £1800 if it was done based on an actual reading which seems very high unless you are in a large energy inefficient property. They appear to be expecting you to use £1320 next year (219*12-1200) which is not quite so bad.
when you phoned them (months ago) did you ask or tell them to increase your DD?

backfoot

Becsdawson wrote: »

I have contacted my energy company a few months ago telling them I was concerned about the debt on my account, that I had provided them with regular readings and that I am not an the cheapest tariff - they came back to me with a one day only offer for a lower tarrif which I unfortunately missed because I was working and it completely went out of my head. They have emailed me today saying I have £1200 debt and that they are increasing my dd to £210 a month (4 x what it was). My annoyance is this was done in what they called a regular review of my DD which, if it had been regularly reviewed would have picked up a while ago that it wasn't covering things. Is there anything I can do - I want to change suppliers but guess that is unlikely without paying off the full amount in one go. Any advice gratefully received

Which Supplier is this? They don't offer one day only tariffs. Tariffs get withdrawn or replaced from time to time but an equivalent or near equivalent one would exist.

At the heart of your problem is that you are probably on a standard tariff. If that is the case, you may be paying around 60% higher than you need.

Change immediately to get control of your costs. You then need to manage the arrears as soon as possible before looking to switch again to the best offer in the market.

Start to monitor your energy consumption. By regularly checking readings and calculating your own costs helps to understand what is driving those costs. It leads to savings and is very satisfying.

Ensure your DD covers your predicted annual consumption.It's a simple calculation.

Good luck.

System

It is unrealistic to expect suppliers to carry out constant DD reviews given that usage patterns vary month by month dependent on the prevailing weather. The 'key' to avoiding situations like this are three-fold:

1. Ensure that you have given the supplier the most accurate annual projection that you can in kWhs/year not £s. If necessary, ask the supplier for your property's EAC and AQ and/or look back over old bills. Your initial DD payment should be 1/12 of the calculated annual cost.

2. Provide your supplier with frequent (monthly) meter readings to ensure that all bills are based on actual rather than estimated usage. Suppliers only have an obligation to read your meter once every two years, and they do not have the luxury of a 'crystal ball' to calculate future usage.

3. Look carefully at the bills that you receive. The credit/debit balance is a clue to what is going on. If, from April onwards, your credit balance is not increasing or your debit balance is not decreasing, then these are clear signs that you are underpaying. Sadly, clearing a debit balance within an annual period is a double-whammy as you not only have to pay more to cover expected usage increases but you also have to clear the debt in a few months.

I am sorry if we appear to be repeating the same message over and over again. We do so because posters repeatedly post with the same tale of woe. Monitoring energy bills isn't difficult. I use a 99p app called 'Meters'. Once a week, I enter two meter readings and with a single button press it tells me how much energy I have used in £s since my last bills.

https://www.ofgem.gov.uk/ofgem-publications/64013/directdebitleaflet.pdf

Robin9

In his original post OP had recognized that his DD was too low but its not clear what happened - did his supplier change the DD and did he change tariff?

Many people seem to think that DD is the only way to pay their bills - certainly E.on and OVO both offer the facility to make top-up payments online.

Biscuit23

Hi

You say you rang to tell energy company concerned about debt. Had you received a statement at this time with an actual read on? If you had and there was a balance accruing the energy company would normally review the dd at this point. When you called did you also ask to have the dd increased ?

The one day tariff offer I think is because legally energy companies can only guarantee a quote for 24 hours in case of price changes. Have you asked for a cheaper tariff since as if a tariff is withdrawn its usually replaced with an alternative.

Do you know when the last time your dd was reviewed prior to this was?

Your post also doesnt confirm if the dd is for one or both fuels. I think what you need to do is the following

The energy company roll any debt at annual dd review into next years dd to reclaim it in a year. You dont have to do that. I think the most important thing is to make sure you are covering you future usage. The accrued debt should be able to be put into a separate repayment plan so you can agree more affordable monthly repayments as £200+ a month is a lot.

I also think you need to change tariff before you work out your annual cost as you may save a lot this way and further being down the monthly cost.

You are within your rights to ring your company as often as you want to give a read i would ask them to check your dd at this time too.

Good luck

System

Biscuit23 wrote: »

You are within your rights to ring your company as often as you want to give a read i would ask them to check your dd at this time too.

Unless the customer is with Ovo.

6. Online discount

6.1. With all of our Payment Methods, you’ll receive an Online Account Management Discount if you agree to manage your account online.

6.2. If you agree to manage your account online, you’re agreeing that you’ll undertake the following actions:

6.2.1. provide quarterly meter readings only using MyOVO or our automated telephone service,

6.2.2. stop receiving paper bills,

6.2.3. make any changes to your Direct Debit only using MyOVO,

6.2.4. keep your personal details in MyOVO accurate and up to date,

6.2.5. renew your contract using MyOVO (if you decide to renew).

6.3 If you can’t follow the rules in clause 6.2 on a particular occasion for technical or other reasons we agree are beyond your control, we won’t take your Online Account Management Discount away.

6.4. If you’ve agreed to manage your account online but you don’t follow the rules in clause 6.2, we can take your Online Account Management Discount away for future bills.