Sainsbury's Energy Price Hike

wavelets

Hengus wrote: »

Don't blame the supplier, this is the methodology that Ofgem requires them to use.

Are you sure?

I've never had a monthly direct debit figure revised on this basis whilst I am on a fixed tariff - the change occurs only after the fixed term expires (if I allow that) or on change of tariff. (assuming no change in usage)

If Ofgem adopt this approach, the DD figure should change every month. :cool:

(Do not confuse with Ofgem's directions on how comparison sites or energy suppliers should calculate costs/savings for switching tariff)

System

Hengus wrote: »

Don't blame the supplier, this is the methodology that Ofgem requires them to use.

I wasn't blaming anyone - it's just something you need to be aware of. A simple phone call sorts it out.

System

wavelets wrote: »

Are you sure?

I've never had a monthly direct debit figure revised on this basis whilst I am on a fixed tariff - the change occurs only after the fixed term expires (if I allow that) or on change of tariff. (assuming no change in usage)

If Ofgem adopt this approach, the DD figure should change every month. :cool:

If the company is reviewing your monthly payment and you are some way into your fixed tariff then the potentially higher standard tariff will affect your monthly direct debit payment if you don't do anything about it. It certainly happened to me and British Gas admitted this was the reason. Maybe it's a fairly new Ofgem requirement?

dogshome

Lets not confuse the issue
The OP states that they are on a S'bury Fixed Tariff that began in July 2016, it was at this point that the general tendancy for prices to fall ended, and from that point forward they have steadily increased across the board.

True the OP will eventually get to the stage of suffering Ofgem's crazy quotes based on the assumption he will accept a 'Standard' tariff when the present one ends, but that point is over 6 months away and most certainly has nothing to do with the increase in his D/Debit
.
That is due to more energy being used than is being paid for by £75 a month.
The £150.50 a month now asked for is made up of the cost of the energy the supplier reckons the OP is actually consuming, + money to pay off the debt

System

My monthly direct debit review was also around 6 months into my collective fix. I can only relate what happened to me and British Gas confirming what they do. The review for me looked at six months on the collective fix and six months on the standard tariff thereafter. Assuming there has not been an unexpected of unforeseen increase in usage I reckon that's what happened.

wavelets

According to British Gas' own website

Calculating your payments
We calculate the likely cost of your energy for the year ahead by combining:

• Your predicted energy usage (see above).
• Your current tariff(s).
• Any outstanding balance on your account(s) (for existing customers).

For monthly fixed Direct Debit payment, we split this total cost into equal monthly payments. For most people this means your account will be in debit in the winter and/or credit during the summer - levelling out by the end of the year.

(my hightlighting in red) https://www.britishgas.co.uk/help-and-advice/Bills-payments/Direct-Debits/How-Direct-Debit-works/How-is-monthly-fixed-Direct-Debit-calculated.html

If they have not done that, this MSE article may assist you in fighting back
http://www.moneysavingexpert.com/utilities/lower-energy-direct-debits

Catman7

I have just switched my dad to Sainsbury's fix and reward 2018 with £100 Sainsbury's card, as he was on British gas and heard a lot of people saying Sainsbury's is cheaper but just looked the fix and reward 2018 is the same tariff that is the standard tariff on British gas not sure about the other tariffs but think there are the same prices as British gas just another name for them so no longer cheaper.

System

Catman7 wrote: »

I have just switched my dad to Sainsbury's fix and reward 2018 with £100 Sainsbury's card, as he was on British gas and heard a lot of people saying Sainsbury's is cheaper but just looked the fix and reward 2018 is the same tariff that is the standard tariff on British gas not sure about the other tariffs but think there are the same prices as British gas just another name for them so no longer cheaper.

Yes, thats another of BG s little tricks to keep people on standard tariff.They used to call it "fix and fall " but was more or less what their standard/variable tariff was i.e. top price !