MSE News: EDF follows British Gas with energy price rises

aj23_2

Hengus wrote: »

Suppliers pay their wholesalers in advance of supply. Would consumers that want to pay by cheque or cash be prepared to pay for 3 months of energy in advance of supply?

Consumers who pay by DD do give the suppliers a source of income to pay their suppliers.
Other advantages of DDs are:

— It’s cheaper than cheque, safer than cash
— You control the date of receipt into your account
— You get cleared funds in your account on a known date
— You can collect variable amounts on regular or irregular dates
— It can eliminate time-consuming reconciliation
— When used in promotions, it can improve the conversion rate from enquiry to sales.

Source: Direct Debit Co.

All of these are from the perspective of the business, not the customer.

PennineAcute

So if paying by monthly DD enables the supplier to have a monthly source of income, which in turns allows them to again buy in bulk, thus giving you lower costs, then what is the issue?

Now, TV licencing DD is a total con, where you have to pay a year's licence in the first 6 months and then pay 6 months in advance and 6 months in arrears.

A store may buy in bulk, but they have a daily income.