Monthly direct debit

Rumman

Until recently i thought this meant for gas and electricity bills, i would get charged for the amount of electricity and gas i use p/m. But i found out that my energy supplier will be charging me monthly 42 quid a month regardless of my consumption and every 3 months this will be checked whether 42 pound a month is fair or not on my usage. This wasn't made clear on their website when i signed up but does monthly direct debit by energy suppliers mean they charge you a fix amount each month, on the basis of the readings you have given then they change it according to your usage after every 3 months?

Pixie28

Yes that is exactly what it means. Your supplier calculates you average usage over a year and splits it into 12 monthly payments. It is usually reassesed every quarter to make sure that you are paying enough to cover your usage. Its a perfectly acceptable system especially with regards to heating, as you use alot more during the winter months. Instead of a much increased payments during the cold season, your costs are spread out over the year.

Terrylw1

Yes. Some split them 10 months, some 12.

They are being very proactive by assessing every 3 months. They don't actually need to assess that often.

However, what they are doing is helping you as it will make your bills more accurate. You need to provide them with a quarterley reading though for this to work or they will base it on estimates...making it inaccurate and potentially overcharge you in the process.

What if £42 it too much, surely you would like them to lower it?

Rumman

Thats what i was wondering, but if i provide readings every quarterly and they have their man coming round also, they readings can't be on estimate can it? Although the current price i'm paying is actually on a estimate from my usage on my previous energy suppliers.

Terrylw1

Thats correct. As long as they use your readings and those from the meter reader, they will base it on accurate data.

However, have they been used in your bills?

If you contact them with a readinf too late, they will just record it and not amend your bill. Generally Suppliers won't re-issue bills after a month based on guidance from Ofgem about causing part quarter bills.

They don't always usr those from the meter reader either e.g. they may not match, they may have been received too late.

Estimation occurs automatically for the bills when they don't get a reading from another source.

From there, they can re-assess your payments.

Mat_Lock

Yeah I screwed myself up when I moved in in July. Forgot to take a reading and only sorted out the bill changes in September. So they had to guess, I am sure I am paying over so wont know for another 3 months.