Fixed Energy deals

Billyboy51

I thought when you start with an energy deal with a provider at a set price they would keep it like that for 12 months at least so they can work out your proper usage. I say this because I have been with mine for 7 months (winter period only) and they have decided to up my direct debit by 25%. My usage believe it or not has changed very little. Any views?

Gerry1

Only the price per kWh and the standing charge are fixed.   Banning DD reviews before 12 months would just result in massive bill shock from those who wrongly thought it was All You Can Eat.

Billyboy51

Thanks for replying and yes I agree with you and I believe the onus is on me to keep within the perimeters. I know my usage is near enough the same as my last provider who charged me less £10 a month less than this one intends to do now and as I pointed out to them I will hardly use any gas through out the summer. Also when I left my last provider I had a refund of £60 but they were not prepared to budge on this 25% increase. I feel the budget control has not been worked out correctly and when the info was first proved to them of my previous usage this would help keep a fixed fee surely? 

D_M_E

Have you tried a written complaint by letter - backed up by email - explaining your points that

1. Your consumption has not changed year on year

2. Yes, you are using more during the cooler part of the year but expect consumption will drop dramatically when weather warms up

3. Offer to accept a small increase of say 5% but will not accept one of 25%

Could be they want to claw back some of the winter underpayment and are not willing to wait until your current DD catches up over the summer.

BooJewels

Billyboy51 said:

[...]    I feel the budget control has not been worked out correctly and when the info was first proved to them of my previous usage this would help keep a fixed fee surely? 

I have a feeling that you're not getting how it works.  The fixed bit is how much the actual energy costs both per kWh of electricity used, plus the price per day standing charge.  It DOES NOT mean that you will pay the same amount per month - if your actual usage outstrips your anticipated use.  Utility companies review periodically as you go along to ensure that doesn't happen - as Gerry already explained.

The best method of budget control is to do it yourself.  For example, this is a simplified version of how I do it - not with real figures - just made up ones.  I take meter readings at the last possible opportunity on each calendar month.  Therefore, at any time, I can say with confidence what we used in the last year to that point.  This accounts for seasonal fluctuations.

So, in the last year from end of Jan 2019 to end of Jan 2020 we used 6000kWh of electricity at 20p per kWh and 20p per day standing charge, with 5% VAT = annual bill of £1336.65.  To budget for the next year, I add 10% for future contingency = 6600 kWh = £1462.65 bill for Jan 2020 to 2021 (assuming same price).  I already have a credit on my account of £146.50 - therefore  future unpaid aspect of the bill will be £1316.15 divided by 12 for monthly DD = £109.68 - round up to £115 should be what I'd expect to pay per month by DD, which should happily cover my electricity use until January 2021. 

You would then negotiate with the power company from an informed position in respect of how much you should be paying, then tally their issued bills with your own meter readings to ensure that it is all ticking along nicely.  If your credit increases too much, you can always reduce your DD or vice versa.  Budget control is down to you and taking responsibility for your own fuel use and ensuring that you can pay for it - took me a handful of minutes to work that out, much better than finding myself at the wrong end of a horrendous fuel bill I can't afford.

Gerry1

BooJewels said: So, in the last year from end of Jan 2019 to end of Jan 2020 we used 6000kWh of electricity at 20p per kWh and 20p per day standing charge, with 5% VAT = annual bill of £1336.65.

Your budgeting may be accurate, but it's wasting you a vast amount of money, probably over £500.  The same usage with Neon Reef (completely missing from the CEC) would cost me £775.29 at current rates.  It remains to be seen how good they are (all going smoothly so far), but it's certainly high time you switched to a cheaper provider !

Talldave

BooJewels said:

The best method of budget control is to do it yourself.  For example, this is a simplified version of how I do it - not with real figures - just made up ones. 

Gerry1, the figures are theoretical.

Gerry1

Memo to self - don't skim read posts...

BooJewels

Sorry Gerry, it did end up a longer post than I intended, so you're certainly forgiven. Thankfully I am paying significantly less than that - I just thought it was easier to use a round number, as I think my prices are to 3 decimal places before VAT, I just prefer to work it out that way.