Should we be able to get interest back ?

Cardew

Daddyswede wrote: »

Cardew,

Maybe I didn't explain it clearly enough but thanks for the reply.

As for them setting up a hugely expensive virtually instant computer system, why not, they'd like us to all sign up to paperless billing, surely they should have a system / service in place to ensure customers can keep up to the minute with their accounts.

Again the question is if my bank can do it, why can't they ? Or maybe I'm just impatient and expect them to do their job as I pay them to.

Have a good one

I really can't see the purpose of such a computer system; or why you think you pay them to do such a job. You pay them(or any other company) to run accounts as laid down in their terms and conditions.

You can't make a comparison with a bank as both credits and debits are shown instantly.

Paying by Direct Debit or quarterly you only have bills raised quarterly when the meter is read/estimated.

What on earth would be the purpose of having your payments credited instantly when the debits are applied every 3 months? How would that keep customers "up to the minute" with their accounts?

As I said earlier:

Looking on-line today I might see that I am, say, £200 in credit. However tomorrow a £250 debit for a quarterly bill be made and I will have a debit balance of £50.

My DD payments are shown as credited on my account(by BG) within a few days; however my account is meaningless until I know what debits are to be applied to the account; and that is only quarterly.

What advantage would there be in having my payments credited instantly?

Mikeyorks

Daddyswede wrote: »

Remember that they are, in a way, lending you this debit until you accumulate enough to put your account into credit, as with any other utility that you pay in arrears for.

All utility DDs work on the 'swings and roundabouts' principle - in particular where the service you take from them is seasonal. The DDs are designed to be self -compensating over the whole year period. Sometimes you owe - sometimes you are owed. Overall it should be a net zero in interest terms when the annual review comes round.

Classic case is your TV licence where, once you are fully on their monthly DD system you pay 6 months in advance and 6 months in arrears. In interest terms - it's neutral

Terrylw1

Daddyswede wrote: »

Cardew,

Maybe I didn't explain it clearly enough but thanks for the reply.

As for them setting up a hugely expensive virtually instant computer system, why not, they'd like us to all sign up to paperless billing, surely they should have a system / service in place to ensure customers can keep up to the minute with their accounts.

Again the question is if my bank can do it, why can't they ? Or maybe I'm just impatient and expect them to do their job as I pay them to.

Have a good one

They already have systems which cost millions, I can tell you that. Thses systems are constantly reviewed and updated to benefit the management of your energy. However, you don't know because you don't need to.

The bank can show that payment immediately because it's going through their clearance system. Transfer some cash fom 1 bank to another and you will notice that that is days, not minutes. That is because it's going via 2 clearance systems.

The same then applies to a utility. If you make a BGC payment via your bank, they will clear it and pass it to the utilities account. They then display it as soon as they get it.

Suppliers systems go though independant compliance reviews under people like Elexon & Gemserv as well as Ofgem's Economic Regulation people. Suppliers have to be consulted in any industry changes so they can set timeframes & budgets. They then go through a change management process before confirming to a regulatory body that they have made themselves compliant with a change request.

Any Supplier can request a change to the industry to improve it and if regulatory bodies agree via consultation with all industry parties, it is forced upon all. However, the costs of all these changes are part of the business running costs and then get added to their need for increased revenue.

On the point about energy purchases. Supplier's have to purchase energy set by an independant party (the NHHDA/HHDA) and they have to pay it whether or not they they charge it back to their customers. The charge for energy is far lower to them than it is to you. This is how they over themselves against debts by customers and everything else they have to pay for.

Why don't you have a look at Atlantic's deal which gives you a refund based on your payments in month 13. This is the closest to what you want.

Also, Merry Christmas!!!