Do Energy companies purposely get you into debt?

Necrosis

So every time I change energy companies, I put in my annual usage from my last bill. When I start with he new company I raise my direct debit to ensure I don't go into debt. This time I went with EDF and paid 2 payments of £96 before raising it to £120. At the next bill they lowered it to £96 and refused to raise it again as they said I wasn't using enough. So 6 months on, I have a new bill, I'm in debt and I have to pay £147 a month. I don't mind paying for what I used but of course if they had let me pay 120 as I requested then my bills would be steady.
I contacted EDF and they are writing an apology and crediting £20 to my account. I was wondering though if this was other people's experience every time they change companies that they end up in debt. Must be good for the energy company as it means people are more likely to join and less likely to move suppliers if people are in debt. 

elsien

No. Never had a problem and I change most years. Do you give them regular (at least monthly) readings? 

When you are doing the comparison are you inputting the amount you pay, or the actual energy used? 

Robin9

We've had this before and the worrying words of yours are " So every time I change energy companies"   which suggests that you are making the same mistake every time.  I, and many others on this forum, have changed suppliers and never experienced this. 

Give us the annual figures you are using 1) as quoted by the former supplier and 2) as calculated by yourself using actual readings about 12 months apart. 

Carrot007

No, it's just a computer says no thing.

Most comapnies won't even let you change it without contacting them manually these days. Many smaller ones also want to weight the bill nad have a month upfront.

As long as you have a history of validated reads for the previous year and expect to use around the same though the DD should be good. If you don't then, "they can only go on what they got". (and catch up bills from a stretch of no reads would mess their forcast). So provide monthly reads of get a smart meter if you want a decent history and accurate(as can be) forcasting).

Hey compain if it's the other way around (at the end of 12 months, not beign in credit at any point). Having excess money sitting about it not really a hardship.

Robin9

We've had this before and the worrying words of yours are " So every time I change energy companies"   which suggests that you are making the same mistake every time.  I, and many others on this forum, have changed suppliers and never experienced this. 

Give us the annual figures you are using 1) as quoted by the former supplier and 2) as calculated by yourself using actual readings about 12 months apart. 

Neil_Jones

Necrosis said:

So every time I change energy companies, I put in my annual usage from my last bill. When I start with he new company I raise my direct debit to ensure I don't go into debt. This time I went with EDF and paid 2 payments of £96 before raising it to £120. At the next bill they lowered it to £96 and refused to raise it again as they said I wasn't using enough. So 6 months on, I have a new bill, I'm in debt and I have to pay £147 a month. I don't mind paying for what I used but of course if they had let me pay 120 as I requested then my bills would be steady.
I contacted EDF and they are writing an apology and crediting £20 to my account. I was wondering though if this was other people's experience every time they change companies that they end up in debt. Must be good for the energy company as it means people are more likely to join and less likely to move suppliers if people are in debt. 

Never had a problem in ten years.  You're clearly doing something wrong.  Are you providing usage as in "I've spend £675 last year" or as in "I've used 10000 Gas and 2500 Electricity"?

Robin9

I suppose if at the end of the year and the account has a lot of estimates in it and they are low - then when the existing supplier gives you their estimate of annual consumption it will also be low. But on leaving your old supplier you would get a big final bill.

matelodave

I dont have that problem because I monitor my energy consumption myself. I send in my own annual estimate based on my own meter readings, not guesstimates or estimates from the energy co. I read the meter every month, send in  the readings and then check the bills and statements to ensure that they are correct and in line with my own forecasts.

I also jump on them immediately if they start faffing around with my DD to get it restored back to what was agreed because I know that unless something goes awry, my account will usually balance out within about £30 at the end of the contract. depending when I start a new fix depends on whether I end up in debt over winter or in credit over the summer.

Start in April and you should have a healthy credit by October which will dissipate over the winter, Start in November and it will look like an unhealthy debit by March which should reduce over the summer. It only goes wrong if the original estimate is wrong or the DD isn't set up correctly or gets faffed around with.

This year my consumption (7196kwh) v my forecast (7200kwh) was actually just 4kwh out. However because of Symbio's faffing at the beginning of my contract they ended up owing me £30 whereas it should only have been 48p

welshmoneylover

I have never had any issues with debts or payments; I tend to monitor the account at least monthly or quarterly

JJ_Egan

Never had a problem with many transfers ( at least 10 )

Nebulous2

Some companies micro-manage DDs and it can be a real pain. We have a holiday house and how often we use it, and consequently the utility usage varies. 

British Gas were forever writing to me and reducing my DD when I wanted it left alone.  Then I had to contact them to ask them not to change it.  They only wanted quarterly readings which didn't help.