Bulb Energy - Can they request a payment increase in this way?

LexyBells

Hi there,

I've had an odd email from Bulb Energy with regards to raising my monthly payments to them and I wanted to know if it is legal for them to do this or of this is extremely bad practice. I will copy the email below and would greatly appreciate your advice as it isn't something I have come across before. Please note that I had an email from them a month prior to this asking if I would consider raising my payments. As I was in credit I decided against it. Now it seems this decision has been taken out of my hands. Thank you so much in advance! Amy advice is much appreciated.

Email Title:
We need to increase your payments

Hi Lexy,

Based on your recent meter reading, your energy costs more than expected. To cover this, we need to increase your payments from £68 to £86 a month.

We'll do this automatically on 13th December, 2018. ​

How we've calculated this
Using the information we have about your home, we think your energy will cost £931 over the next 12 months. And you need to end up with two month's credit (£172) at this point next year to cover the cold winter months. You already have £77 of credit, so your payments should be £86 a month to keep your balance healthy.


Useful things to know
We have more accurate information about your property since you joined
A regulated third party has sent us more up-to-date information about how much energy your property has used in recent years. We need to update your payments based on these details to keep your account shipshape.

Bulb is still 15% cheaper than standard Big Six plans
Despite the increase in the wholesale cost of energy, Bulb’s variable tariff is still 15% cheaper than standard Big Six plans.

Get help managing your payments
If you’re struggling to pay for your energy, get payment help and impartial advice. We can set up a payment plan and give you contact details for charities that can help.

You can change your payments quickly online
Going away? Guests staying for a few months? You can update your payments in your Bulb Account to reflect any changes at home.

All the best,
Team Bulb

tacpot12

It is legal for them to this - your contract with them specifically allows them to do what they have done. See https://bulb.co.uk/terms/

Their explanation of what they have done is very clear and seems to represent best practice.

smittenbee

Same experience here with a relative. Jumped from £100 to £120 despite the fact I know £100 is sufficient - previously paying £90 to one of the big six and Bulb are still cheaper. I logged into the account for Bulb and changed it back to £100.

[Deleted User]

Bulb did the same to me a few weeks ago with an increase from £55 a month to £70 and completely ignored my latest gas reading and substituting their own.They used historical past usage data from a property who the last owner was an aged lady aged in her late 80 s who hardly never left home ..
Most of this increase though is because they raised their tariffs by 11 % in early November, but I m afraid its bye bye Bulb and thanks for the £60 Eon exit fee you so very kindly added to my account a few weeks ago.
It won t stop me changing supplier in a couple of weeks, unless its in their t/c s I ve got to stay with them for a certain period

beardiedog

They upped mine by £21, the email saying I needed to have 2 month's credit (£208) in my account by this time next year.

I went in to my account and changed it back to what it was.

I'll decide if and when I need to up my DD amount, not Bulb :mad:

tgon

Same for me - £86 to £110 in the last couple of weeks. Largely expected and forewarned by Bulb in Sept. Readings seems to be ignored in their calculation as they push their winter/summer balancing logic, a little-front loaded in my opinion. As I only signed up in Sept, I'll wait for my £25 refund in Jan and look elsewhere. Glad their is no exit fee.

beardiedog

tgon wrote: »

Same for me - £86 to £110 in the last couple of weeks. Largely expected and forewarned by Bulb in Sept. Readings seems to be ignored in their calculation as they push their winter/summer balancing logic, a little-front loaded in my opinion. As I only signed up in Sept, I'll wait for my £25 refund in Jan and look elsewhere. Glad their is no exit fee.

Change it back or change it to what you think it should be based on your calculations. You can always amend it or do a top up later.

They don't give you interest on credit balances so it's better in your bank.

Sle290970

Hi Lexy, and all,

I've had exactly the same email, I'm requesting info on who the "Regulated 3rd party" is, I've only been with Bulb for 1 month, very poor practice by them, my monthly bill has gone up from £149 - £186. I'm sure it's all legal but very bad practice. I hope MSE can keep an eye on this and at least warn others going forward.

Fredthecoolcat

Hi All

Same thing here. Moved in September and they can't even give old supplier correct readings. I had the regulated 3rd party thing too. Why do I need "two months credit" on my account?? MSE should stop recommending them. Once they have meter readings sorted I will be moving.

beardiedog

Fredthecoolcat wrote: »

Hi All

Same thing here. Moved in September and they can't even give old supplier correct readings. I had the regulated 3rd party thing too. Why do I need "two months credit" on my account?? MSE should stop recommending them. Once they have meter readings sorted I will be moving.

It keeps their cash flow healthy and also I suppose it's to safeguard against bad debt.

I think Ofgem should be having a word with the energy suppliers about this 'legal' practice.

System

beardiedog wrote: »

It keeps their cash flow healthy and also I suppose it's to safeguard against bad debt.

I think Ofgem should be having a word with the energy suppliers about this 'legal' practice.

Suppliers pay their wholesalers in advance of supply to retail customers. Provided suppliers make it clear about payments etc in their Welcome Pack and in the contract terms and conditions, I personally do not see a problem. Unfortunately, not that many people can be bothered to read the small print until there is an issue. Suppliers having to borrow to maintain cash flow will just lead to higher prices. All that said, suppliers should be made to provide consumers with the detailed calculation which underpins all DD changes. I suspect that many of the wild increases are down to the fact that some consumers cannot be bothered to read their meters. Suppliers now only have to obtain a meter reading once a year. Note: use of the word obtain not read.

PS. I suspect that the ‘regulated third party’ is what are known as the Data Collectors. They hold validated consumption data for all properties. On a transfer of a supply, this data going back 2 years is passed to the gaining supplier.