Direct Debit Changes

Gerry1

Dolor said:

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. 

If Ofgem made Variable Direct Debit the default method of payment then there wouldn't be any of these shenanigans.

Tokmon

Devonian_Rodders said:

Dolor 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.

Just make sure you put an amount into your bill account each month that will cover your usage and then it's actually a good thing your DD is set to low because it's better to have the money in your account that theirs!