Why am I being penalised for paying my gas and electricity on time each quarter?

xpdeus

Hi.
I am new to this forum so forgive me if this has been posted before but I feel that I'm being penalised for paying my gas and electricity on the dot each and every quarter. I get that energy companies don’t like this method for obvious reasons but why should I lose out on probably around £80 per year because I pay quarterly over the phone by debit card and not monthly by direct debit!

Because I have solar panels I'm given a date each quarter by my supplier to submit my Feed in Tariff (FIT) reading so at the same time I submit my gas and electric readings and process it all in one phone call. I know it's not everyone's ideal way of paying but just because my method of paying doesn't fall in with the way energy company's like to work, I have to lose out.

Does anyone else feel aggrieved by this?

Robin9

The choice is yours - why miss out on £80 a year ?

[Deleted User]

xpdeus wrote: »

Does anyone else feel aggrieved by this?

No, I'm fine with it. It keeps the costs down for the rest of us.

xpdeus

Good answer but that's not the point!

Cardew

Welcome to the forum.

Nearly all companies - not just energy companies - prefer payment by Direct Debit because it is easier for them to administer and thus costs them less money.

Increasingly, the cheaper tariffs are for internet only accounts.

You summed it up here: 'my method of paying doesn't fall in with the way energy company's like to work,'. So companies give incentives to customers who comply with the way 'they like to work'

The tariff with my company is internet only and payment by Direct Debit. I have the choice of paying more for non internet, quarterly payment tariff.

giraffe69

Can't work out why it is not possible to submit readings online whenever convenient, settle by DD, gain the discount. These days energy companies adjust the bill to make the chances of them keeping a lot of your money less likely.
Sounds like you are saying this is your preferred way so go ahead but be aware you cost the company more so they charge more.

System

xpdeus wrote: »

Hi.
I am new to this forum so forgive me if this has been posted before but I feel that I'm being penalised for paying my gas and electricity on the dot each and every quarter. I get that energy companies don’t like this method for obvious reasons but why should I lose out on probably around £80 per year because I pay quarterly over the phone by debit card and not monthly by direct debit!

Because I have solar panels I'm given a date each quarter by my supplier to submit my Feed in Tariff (FIT) reading so at the same time I submit my gas and electric readings and process it all in one phone call. I know it's not everyone's ideal way of paying but just because my method of paying doesn't fall in with the way energy company's like to work, I have to lose out.

Does anyone else feel aggrieved by this?

Look at it through the other end of the telescope. Suppliers pay their wholesalers in advance of supply yet you seem to be suggesting that you are being penalised for paying 3 months in arrears. Monthly DD payments do provide the supplier with cash flow leading to reduced borrowing costs; moreover, DDs are easier/cheaper to administer. Suppliers like Powershop do offer discounted packs if you buy energy in advance of supply - with discounts over 20% for packs bought 3 months in advance.

Looking at my monthly Bank outflows, I note that I pay for home, contents and car insurance in advance; also my TV Licence and mobile phone contract, Sky TV etc.

I am not really sure that you should feel aggrieved for being given what is in effect a 3 month interest free loan. I am sorry if that is not the answer that you expected/wanted to hear

Finally, it is worth noting that the DD guarantee offers excellent consumer protection, and monthly DDs do offer a way of smoothing out the peaks/troughs of energy usage.

Blackbeard_of_Perranporth

Thanks for paying on the dot every three months, it keeps the price down on my 2 year fixed deal I got in October 2016 that runs until December 2018!


To keep this, I have my DD with my bank and they magically take a fixed fee every month!

AndyPK

I pay by direct debit quarterly (automatic) but also get a good deal.


It's called quartly direct debit. Sometimes you have to be asked to be moved onto this. (first select monthly DD when signing up)


Supply meter reads when requested. Although SSE don't remind you

Pay for exactly what you use.

JJ_Egan

I thought the way the OP posted was the normal payment method .

A saving could be made if a discount was offered for DD payment .
So it would not be penalty as the OP claims .