About Direct Debits

bonus2010

I was looking at a comparison site and noticed some suppliers state “Variable Direct Debit” which is exactly what I’d prefer, having the total billed amount debited from my bank rather than this average “fixed debit” amount which relies on being able to estimate annual energy usage.

I’ve only ever done one switch but I can’t remember getting the option to select between either a fixed or variable direct debit, and I’m wondering if it’s common to see such an option when signing for a switch?

Neil_Jones

Not all providers do variable direct debits, the vast majority do the traditional route, ie £26 a month (or whatever) over 12 months, you feed them some meter readings every month and they generate bills and adjust your debits accordingly.

You don't need to "estimate annual usage", just find the last 12 months worth of bills from your current supplier and add all the usage amounts up. There's your figure right there. Assuming constant usage and no major changes it shouldn't be too far away from year to year.

wavelets

bonus2010 wrote: »

I was looking at a comparison site and noticed some suppliers state “Variable Direct Debit” which is exactly what I’d prefer, having the total billed amount debited from my bank rather than this average “fixed debit” amount which relies on being able to estimate annual energy usage.

I’ve only ever done one switch but I can’t remember getting the option to select between either a fixed or variable direct debit, and I’m wondering if it’s common to see such an option when signing for a switch?

As above, not all suppliers offer this option - it tends to be the bigger, more expensive suppliers.

If this is how you'd prefer to pay, select 'pay on receipt of bill' - it's a filter quite a few comparison sites offer.

Michael_Nottingham

Pay On Receipt Of Bill is usually more expensive than a Variable Direct Debit

wavelets

Michael_Nottingham wrote: »

Pay On Receipt Of Bill is usually more expensive than a Variable Direct Debit

:huh:

Variable Direct Debit means you pay on receipt of bill

But paying on receipt of bill by any other method than direct debit often is more expensive.

The_Fat_Controller

EDF offer Whole Amount Monthly (Direct Debit)

I have smart meters, they read them around the 20th, create a bill in the online account a day later which shows when the DD will be taken, it is usually the 6th of the following month.

You have access to all the cheaper DD tariffs.

spenderdave

Surely the 'traditional route' is the variable direct debit one. It is only in recent years that they have pushed this fixed estimated system to offer supposedly cheaper tariffs - but of course they then getting interest on your payments when you are in credit during the summer months. Many of us prefer to pay what we actually owe. The media in particular are at fault for not even mentioning this as an option.

Neil_Jones

spenderdave wrote: »

Surely the 'traditional route' is the variable direct debit one. It is only in recent years that they have pushed this fixed estimated system to offer supposedly cheaper tariffs - but of course they then getting interest on your payments when you are in credit during the summer months. Many of us prefer to pay what we actually owe. The media in particular are at fault for not even mentioning this as an option.

The rise of the smaller providers is why they only do the "£x a month" model so they have the cash flow for it. The big six can offer the "pay on receipt of a bill" option because they can afford to subsidise it that way. If the likes of Zog did "pay on receipt of a bill" they'd have nothing to buy their gas with and that's also why they (and others) do the "month in advance" thing when you join them.

Vortigern

Neil_Jones wrote: »

The rise of the smaller providers is why they only do the "£x a month" model so they have the cash flow for it. The big six can offer the "pay on receipt of a bill" option because they can afford to subsidise it that way. If the likes of Zog did "pay on receipt of a bill" they'd have nothing to buy their gas with and that's also why they (and others) do the "month in advance" thing when you join them.

...and why they hold on to your credit balance for as long as they can after you've switched away.