Direct debit review based on winter quarter

DoubleMackem

I have recently switched to Bristol Energy, they offered me a 2 year deal based on previous annual consumption. I switched as this was much cheaper per month. However, Bristol Energy have done a review of my account, and based on the previous 6 months want to double my DD payment. I have challenged this saying it is based on the heaviest usage time of year , and things will even out over the summer - isn't this why you provide annual usage and agree a monthly payment, you may be in debit during the winter, but during summer it cancels out, or even end up in credit. They are ignoring my points. I have now used their Kw/H charges, and based on my previous annual consumption, I worked out I should be paying more each month anyway. I feel cheated. Why quote me a DD monthly figure if it would never pay off my usage based on my previous consumption??? Any suggestions or help appreciated.

Gerry1

DoubleMackem said:

I switched as this was much cheaper per month.

Oh dear, yet another poster who didn't understand how Fixed Direct Debits work.

Variable Direct Debits should be the default DD with Fixed DDs available only on request and accompanied by a mandatory health warning in red block capitals !

https://www.moneysavingexpert.com/utilities/lower-energy-direct-debits/#whatyoupay

RelievedSheff

Why do you feel cheated?

You need to pay for the energy you are using. If the amount you were paying would not cover your annual usage you need to start paying more.

Richie-from-the-Boro

Paying for more energy than you use in summer, you build up credit on your account, this credit would reduce through the winter, when you consume more energy each month than you are paying for through your fixed direct debit payment only works if your calculated annual consumption is £+, this in turn only works if you supply regular meter reads and your kWh use never varies my friend.

Bristol have reasonably predicted your kWh consumption and changes are higher. Best of luck Sunderland.

Neil_Jones

DoubleMackem said:

I have recently switched to Bristol Energy, they offered me a 2 year deal based on previous annual consumption. I switched as this was much cheaper per month. However, Bristol Energy have done a review of my account, and based on the previous 6 months want to double my DD payment. I have challenged this saying it is based on the heaviest usage time of year , and things will even out over the summer - isn't this why you provide annual usage and agree a monthly payment, you may be in debit during the winter, but during summer it cancels out, or even end up in credit. They are ignoring my points. I have now used their Kw/H charges, and based on my previous annual consumption, I worked out I should be paying more each month anyway. I feel cheated. Why quote me a DD monthly figure if it would never pay off my usage based on my previous consumption??? Any suggestions or help appreciated.

I suggest you read up on the link posted above.  You do not pay £50 a month and eat all the gas and electric you like.  If that was the case we wouldn't have meters.

You are not being "cheated", you need to learn how the systems works.  You have given Bristol Energy some meter readings at some point over the last six months?

Gerry1

You haven't been paying your way, so the DD will have to increase. The DD will also have to increase further for a while so that your arrears can be clawed back.

If Bristol Energy hadn't changed your DD you'd build up bigger and bigger arrears and then get a massive shock when you chose to go to another supplier.  You'd have to pay a large sum immediately or your transfer would be blocked.

Is that really the outcome you would prefer?

matelodave

Have a look at the attached PDF file to see how your DD and consumption profiles work (I cant copy the graph to the thread - unless someone can tell me how)

Talldave

DoubleMackem said:

..... I have now used their Kw/H charges, and based on my previous annual consumption, I worked out I should be paying more each month anyway. I feel cheated. Why quote me a DD monthly figure if it would never pay off my usage based on my previous consumption??? Any suggestions or help appreciated.

Everybody's lecturing the OP about direct debits but not addressing one of their key points - the DD wasn't adequate for the stated consumption.  I think the OP should ask the supplier that simple question, because that's certainly contributed to their predicament. However, the situation is what it is and energy used has to be paid for.  But perhaps they would allow the OP longer to bring the debit down.
FWIW, I would have checked the calculation when signing up.

DawnCrush

DoubleMackem said:

I have recently switched to Bristol Energy, they offered me a 2 year deal based on previous annual consumption. I switched as this was much cheaper per month. However, Bristol Energy have done a review of my account, and based on the previous 6 months want to double my DD payment. I have challenged this saying it is based on the heaviest usage time of year , and things will even out over the summer - isn't this why you provide annual usage and agree a monthly payment, you may be in debit during the winter, but during summer it cancels out, or even end up in credit. They are ignoring my points. I have now used their Kw/H charges, and based on my previous annual consumption, I worked out I should be paying more each month anyway. I feel cheated. Why quote me a DD monthly figure if it would never pay off my usage based on my previous consumption??? Any suggestions or help appreciated.

How did you get the quote?

If you go to any comparison site, or indeed the Bristol Energy site directly, they ask for your anticipated annual consumption (which unless there are reasons it would change significantly, will usually be the same as last years consumption ).
In regards the Bristol Energy site, this is asked when you request "Get a more accurate price".

You always get a more accurate quote by providing your anticipated annual consumption in kWh.

The quote is then based on that consumption using the tariff details.

You say "...based on my previous annual consumption, I worked out I should be paying more each month anyway...", so where did it all go wrong? Are you sure you gave the same previous annual consumption figure to the comparison site/supplier that you are using now?

matelodave

Scottish Power did it to me, they tried bouncing my DD up and down every three months based on the previous three months consumption. They or their computers don't seem to understand that at some part of the year you'll be in debit and some in credit and if they do a review at the end of summer based on your summer consumption they'll reduce it and a review at the end of winter will increase it.

The DD should be Estimated Annual Consumption (EAC)/12 = 8.3% but most people's consumption in January can be around 16% of their EAC (ie twice what they are paying for) whereas during the summer months it's only around 4% (half of what they are paying for)
I use around 65-70% of my energy between November and March and the rest in the seven spring, summer and autumn months)

If your DD is about right and is based on your average annual consumption then it should balance out at the end of 12 months. I've got a graph which demonstrates how it works but I cant paste it into the forum. (see the attached jpeg)

You should always do your own sums to check that the DD has been set to the correct level, you should send in monthly readings and check your bills (every month) so you can see how your account is performing.