Direct Debit Changes

Devonian_Rodders

Following the MSE programme on ITV yesterday, I am experiencing issues with regard to D D changes.
My energy provider has indicated it will reduce the D D from February and not review again until Nov 2021
Since I keep my own records, I have calculated the reduced D D will amount to 40% LESS than expected usage.
As we are in mid winter, it is very difficult to estimate consumption, and as a consequence of their actions, the supplier will no doubt expect an upfront payment and a very much higher D D payments.   Upfront payments have been requested in the past.
i am aware Ofgem have rules regarding how much Energy Companies can carry forward, but Ebergy firms have to recognise not everyone wants to be in debt and be expected to find large sums, particularly at the start of winter months.
The fluctuation in D D's has put me off getting a better tariff (smart meter ?) since I consider this the next step to losing control of my accounts, meaning DD's will be up and down like a YO Yo.

Gerry1

Just make additional top-up payments as necessary.

[Deleted User]

You should be able to request changes to DD payment amount on the website. I can with my util companies. Or just put the money aside and be prepared to make additional payments as and when required .

British Gas decided to drop mine by £20 a month just before going into winter but I had enough credit built up to counter it anyway.

[Deleted User]

Devonian_Rodders said:

Following the MSE programme on ITV yesterday, I am experiencing issues with regard to D D changes.
My energy provider has indicated it will reduce the D D from February and not review again until Nov 2021
Since I keep my own records, I have calculated the reduced D D will amount to 40% LESS than expected usage.
As we are in mid winter, it is very difficult to estimate consumption, and as a consequence of their actions, the supplier will no doubt expect an upfront payment and a very much higher D D payments.   Upfront payments have been requested in the past.
i am aware Ofgem have rules regarding how much Energy Companies can carry forward, but Ebergy firms have to recognise not everyone wants to be in debt and be expected to find large sums, particularly at the start of winter months.
The fluctuation in D D's has put me off getting a better tariff (smart meter ?) since I consider this the next step to losing control of my accounts, meaning DD's will be up and down like a YO Yo.

Choose a supplier like Octopus or E.oN that (within limits) allows you to set your own monthly DD. Octopus, I know, also has a link on its account pages for one off payments. Why would a smart meter that bills using actual meter readings lead to you losing control of your energy accounts? For example, I have had SMETS2 smart meters now for over 18 months. A free App (BrightApp) enables me to see that since last bill I have used £37.64 of gas and £10.12 worth of electricity. I have never had such control or visibility of my usage and energy costs.

Brewer20

I've got no smart meters but can say to just a few kWh or pounds how much I'm likely to use. Going off previous bills and from my own records of usage I actually reduced my DD this month to £45 from £52. I have a credit of £124 and expect my next 2-3 payments (bills) to be no more than £76, hopefully less, going on previous years. Igloo agreed the £45 and will review the payment again in March.
As said the facility is there to top up with an extra payment if needed.

Devonian_Rodders

[Deleted User] said:

Devonian_Rodders said:

Following the MSE programme on ITV yesterday, I am experiencing issues with regard to D D changes.
My energy provider has indicated it will reduce the D D from February and not review again until Nov 2021
Since I keep my own records, I have calculated the reduced D D will amount to 40% LESS than expected usage.
As we are in mid winter, it is very difficult to estimate consumption, and as a consequence of their actions, the supplier will no doubt expect an upfront payment and a very much higher D D payments.   Upfront payments have been requested in the past.
i am aware Ofgem have rules regarding how much Energy Companies can carry forward, but Ebergy firms have to recognise not everyone wants to be in debt and be expected to find large sums, particularly at the start of winter months.
The fluctuation in D D's has put me off getting a better tariff (smart meter ?) since I consider this the next step to losing control of my accounts, meaning DD's will be up and down like a YO Yo.

Choose a supplier like Octopus or E.oN that (within limits) allows you to set your own monthly DD. Octopus, I know, also has a link on its account pages for one off payments. Why would a smart meter that bills using actual meter readings lead to you losing control of your energy accounts? For example, I have had SMETS2 smart meters now for over 18 months. A free App (BrightApp) enables me to see that since last bill I have used £37.64 of gas and £10.12 worth of electricity. I have never had such control or visibility of my usage and energy costs.

The whole idea of a smart meter is for the energy company to review consumption monthly. This in turn will lead (eventually)  to DD's being moved more frequently. My supplier, in reducing my DDs means at the next review (based on current costs) my account will be at least 40% adrift. My calculation on last 5 years consumption.
The idea if DDs was to avoid meeting LARGE bills at the wrong time., but with reviews taking place in Mid Winter and again in November, demands for large upfront payments are inevitable.  The system does not help people to budget.

[Deleted User]

Devonian_Rodders said:

[Deleted User] said:

Devonian_Rodders said:

Following the MSE programme on ITV yesterday, I am experiencing issues with regard to D D changes.
My energy provider has indicated it will reduce the D D from February and not review again until Nov 2021
Since I keep my own records, I have calculated the reduced D D will amount to 40% LESS than expected usage.
As we are in mid winter, it is very difficult to estimate consumption, and as a consequence of their actions, the supplier will no doubt expect an upfront payment and a very much higher D D payments.   Upfront payments have been requested in the past.
i am aware Ofgem have rules regarding how much Energy Companies can carry forward, but Ebergy firms have to recognise not everyone wants to be in debt and be expected to find large sums, particularly at the start of winter months.
The fluctuation in D D's has put me off getting a better tariff (smart meter ?) since I consider this the next step to losing control of my accounts, meaning DD's will be up and down like a YO Yo.

Choose a supplier like Octopus or E.oN that (within limits) allows you to set your own monthly DD. Octopus, I know, also has a link on its account pages for one off payments. Why would a smart meter that bills using actual meter readings lead to you losing control of your energy accounts? For example, I have had SMETS2 smart meters now for over 18 months. A free App (BrightApp) enables me to see that since last bill I have used £37.64 of gas and £10.12 worth of electricity. I have never had such control or visibility of my usage and energy costs.

The whole idea of a smart meter is for the energy company to review consumption monthly. This in turn will lead (eventually)  to DD's being moved more frequently. My supplier, in reducing my DDs means at the next review (based on current costs) my account will be at least 40% adrift. My calculation on last 5 years consumption.
The idea if DDs was to avoid meeting LARGE bills at the wrong time., but with reviews taking place in Mid Winter and again in November, demands for large upfront payments are inevitable.  The system does not help people to budget.

Forget about smart meters, most suppliers base your DD on the annual usage figures that the consumer provides which they then compare to the historical usage data for your property going back over the past two years. Most suppliers from Iresa through to Octopus ask customers for a monthly meter reading. The situation becomes more complicated though when some suppliers insist that customers have a minimum credit balance to cover the cost of the coming month's supply (suppliers have to pay their wholesalers in advance of supply): particularly, for those customers who switch suppliers late in the Year. Smart or non smart meters, apart from one instance a few years ago with E.oN, I have never had an issue adjusting my monthly DD payment - either by doing it online or by calling CS.

Gerry1

Dolor said:

Most suppliers from Iresa through to Octopus ask customers for a monthly meter reading.

If Iresa ask you for readings, it's a scam ! 

They went bust two and a half years ago, and Octopus took over as the SoLR.

vman

I find DD payments with energy suppliers pretty much a scam. I was over £600 in credit with Bulb, my DD was more than my winter billed usage and still they insisted on ramping it up. There's even a website option where you can edge it down a bit (but still more than my bill) which I selected, and they changed it back to even more! I'm sure they use customers balance to fund the running of their business rather than using their banks facilities like a normal business. I've just switched to Green (I mainly changed suppliers as it was the simplest way of getting my £600+ back) and it's looking like the same is happening again! My initial bill of £80/month has just changed to £180!! ..due to energy price increases apparently. Really? 125% energy price increase?! I've only been a customer for a couple of months, and it happened before with another supplier (British Gas).

I've decided to move away from the DD model next time. In theory, the kw/h is cheaper but if they are just going use your DD as their personal cash machine and are going to deprive you access to your own money then it's a false saving. I'm going back to the old fashioned model where you use energy, they send a bill and you pay it (how novel).

Armorica

vman said:

I find DD payments with energy suppliers pretty much a scam. I was over £600 in credit with Bulb, my DD was more than my winter billed usage and still they insisted on ramping it up. There's even a website option where you can edge it down a bit (but still more than my bill) which I selected, and they changed it back to even more! I'm sure they use customers balance to fund the running of their business rather than using their banks facilities like a normal business. I've just switched to Green (I mainly changed suppliers as it was the simplest way of getting my £600+ back) and it's looking like the same is happening again! My initial bill of £80/month has just changed to £180!! ..due to energy price increases apparently. Really? 125% energy price increase?! I've only been a customer for a couple of months, and it happened before with another supplier (British Gas).

I've decided to move away from the DD model next time. In theory, the kw/h is cheaper but if they are just going use your DD as their personal cash machine and are going to deprive you access to your own money then it's a false saving. I'm going back to the old fashioned model where you use energy, they send a bill and you pay it (how novel).

Yes - I've experienced that with suppliers. Moving is one of the most effective ways to get all the overpayment back unfortunately. Solarplicity was the worst I've come across - highly inflated, and then - surprise, surprise - went into insolvency.

[Deleted User]

Hardly hardly a scam when every penny of your credit is protected by the Ofgem Consumer Levy. Yes, it is true that when times are hard struggling suppliers will play fast and loose with consumer credit balances to try and avoid insolvency. In part, we consumers are to blame: we want first-class customer service and cheap prices. To a degree, we get what we pay for.