ELECTRICITY SUPPLIER SWITCHING

AlexRM

Is it really worth me continuing to switch annually to a much-reduced monthly direct debit, only to have it doubled the minute my usage increases in cold weather?  is there a company that doesn't do that, but assumes you will make up the 'in debit' balance during the summer months??  

Gerry1

Just pay by variable direct debit instead.  Unfortunately not all companies offer this.

Robin9

If you are always getting a much reduced DD  I think you are doing something wrong.  I've been with several suppliers and only have an occasional small tweak.

What info are you giving ? Anything other than an accurate annual consumption based on actual readings will result in the supplier guessing and having to adjust when t eventually gets a reading from you.

[Deleted User]

AlexRM said:

Is it really worth me continuing to switch annually to a much-reduced monthly direct debit, only to have it doubled the minute my usage increases in cold weather?  is there a company that doesn't do that, but assumes you will make up the 'in debit' balance during the summer months??  

Switch in April and you usually won’t have this problem. A lot of the smaller suppliers require their customers to have a least a month’s credit in their accounts as they pay their wholesalers in advance of supply.  If they don’t do this then, A, it impacts on the company’s liquidity and, B, they have to borrow which leads to higher prices. Unlike the Big Boys, some small suppliers are not held in very high regard by lenders.

Verdigris

Also, in these times of virtually zero interest rates, having a cash mountain in the summer isn't much of an advantage to a supplier. Of course, if they have to borrow money, to cover winter energy purchases, suddenly interest rates aren't anything like zero. In short, matching cash flow to energy flow makes good business sense and helps keep consumer prices competitive.

Petriix

Switching isn't about paying "a much-reduced monthly direct debit", it's about paying the lowest overall total for your energy by securing the best combination of unit prices and standing charges for your usage.

If your direct debit is based on a correctly estimated total annual consumption then you will pay 1/12th of your total bill each month. As this is paid in advance, you will often end up paying for an extra month which is returned when you switch away.

Many companies do seem to attempt to increase the DD to more than 1/12th of the annual estimate. Normally they see reason when challenge. This happens often for me because my usage is unusually low. Worst case is that you build up a bit of credit which is later refunded.

JJ_Egan

As above i build up a credit with gas and elec in the summer months .

All based upon unit costs and standing charges  not estimated Direct Debits .