Problems with switch to new utility provider

Quietearth

Hi, last month (end Sept) I used the Cheap Energy Club at MSE to switch to a new energy provider, as my old tariff was coming to an end. The estimate I was given for my average monthly direct debit by the new provider (and based on the usage I had given the energy club) was a few pounds less than I was paying and that was fine.

Obviously I wanted to avoid any price hikes associated with a standard tariff. However my new provider is now saying that my monthly DD needs to increase by £30 per month! I am really perplexed. Was the old provider charging me too little over the years, or has something gone wrong during the switch process?

DE_612183

Without a full history of usage energy suppliers sometimes use generic values to estimate the usage and of course the DD reflects this.

Just ring them up - explain the situation and they should be willing to reduce it - always of course presuming that the price they are charging per unit and standing charge is less than your old supplier.

JJ_Egan

Estimates are just that .
What is your actual usage PA .
Multiply that by unit costs add on standing charge and dicide by 12 gives a rough DD PM.

Quietearth

Thank you for your reply.

I suppose my main concern is that I was paying £60 DD on duel fuel (over 2 years) with the old provider and even then I was building up credit in my account because the usage was never that high. The new provider (via Cheap Energy Club) initially gave me a lower estimate (£55) but is now telling my I have to pay a monthly DD average of over £80. My fuel bills have just increased by £240 pa. I'm just bamboozled?:(

DE_612183

Quietearth wrote: »

Thank you for your reply.

I suppose my main concern is that I was paying £60 DD on duel fuel (over 2 years) with the old provider and even then I was building up credit in my account because the usage was never that high. The new provider (via Cheap Energy Club) initially gave me a lower estimate (£55) but is now telling my I have to pay a monthly DD average of over £80. My fuel bills have just increased by £240 pa. I'm just bamboozled?:(

You're looking at this wrong.

Your bills may NOT have increased by £240pa ( but there is a chance they have ) - the amount the energy company are asking you to pay has increased.

You need to compare tariff prices etc - and also ring the new energy company - only they can tell you why unless you post all your usage and tariff details in this thread,

JJ_Egan

What was last years usage ??Or the usage you gave MSE .
Was their a big jump in unit costs betwwen old and new tariff ?

Your old provider does not charge you to little without clawing it back .


A DD of £80 pm is not a huge amount for dual fuel .


Need facts to give a proper answer .

EnergyRookie

Quietearth wrote: »

Hi, last month (end Sept) I used the Cheap Energy Club at MSE to switch to a new energy provider, as my old tariff was coming to an end. The estimate I was given for my average monthly direct debit by the new provider (and based on the usage I had given the energy club) was a few pounds less than I was paying and that was fine.

Obviously I wanted to avoid any price hikes associated with a standard tariff. However my new provider is now saying that my monthly DD needs to increase by £30 per month! I am really perplexed. Was the old provider charging me too little over the years, or has something gone wrong during the switch process?

You have to pay for the energy you use at the tariff agreed.

Traditionally, when paying monthly by direct debit, this was the annual cost divided by 12

But it can be a little different, as some suppliers set their own year start date (as opposed to the anniversay of joiuning them/the tariff)
Also, nowadays some of the smaller suppliers do not allow you to go into debit, and some may try to prevent this either by front loading the payments (e.g. first 6 months higher amount, then last 6 months lower amount) or more commonly winter loading in first year, if you join them just before winter.

But in all cases, the total amount you pay over 12 months (even if they are not equal monthly payments) should match the anticipated annual cost based on your usage and the tariff in force.

So check the basis you are being charged, and check what the supplier considers to be your anticipated annual consumption (ei.e. has it differed from what you originally told them?)

There's a handy MSE guide to assist further here:
https://www.moneysavingexpert.com/utilities/lower-energy-direct-debits/

Smodlet

OP, are you giving monthly meter readings to your new supplier on the same date every month? If not, presumably you have smart meters; if so, have you checked your new supplier is actually receiving these readings? I have read they do not always work as intended.

Without knowing your usage, unit rates and standing charges, no-one can do more than guess. You need to take control of the situation if you want to negotiate with your supplier; just saying you don't like paying so much with no facts to back it up will not cut it.

Bear in mind the time of year: I switched at the end of July for the first time in years so my old supplier had a long record of my average annual usage. My new supplier tries to get me to increase the DD amount every time I submit meter readings because there is a good chance I will go into debit before the winter is out. (Duh, Eon) So what? I am 2 months' DD payment in credit at the moment. Usage will reduce in the Spring and Summer so I will be in credit by the time my tariff expires so will switch away without let or hindrance.

If you know your annual usage, you can work out roughly how much your energy will cost over the year, then find the monthly amount. If it seems significantly less than your supplier is asking, tell them you think it should be lower and why.

Your old supplier will have given the new one ADCs, apparently (Average Daily Consumption figures) so they should already have an idea. If they are anything like my new supplier, they seem to want customers to be in credit all year round so they can rake in the interest on the surplus. The hell with that, say I.

Good luck and please let us know how you get on. Sorry for the long post.