Just changed energy provider. Was in credit with previous supplier at last meter reading . Can I can

Jcbah

Just changed energy provider. Was in credit with previous supplier at last meter reading and no longer being supplied by them . Can I can cancel direct debit? Thanks. 

Robin9

Leave the DD open - then the credit from the previous supplier will be paid direct to bank.

Are you 100% sure you are in credit - some suppliers only show the DD's credited on their online systems - the cost of energy does not appear until the account is actually closed.

Gerry1

You can, but there are pros and cons either way  Even if you're in credit, some companies may still collect DDs automatically until they have generated the final bill, which could be six weeks after the switch has taken effect.  Although only temporary, this can make quite a dent in your finances for up to about 11 weeks, especially as some gaining companies take their first DD before they have started supplying you.

Some companies also have Ts & Cs stating that they will charge a fee if you cancel a DD or it bounces, and they may put you on to their standard (expensive) tariff.

British Gas took over Robin Hood Energy, so I cancelled my DD with Robin Hood when my online banking showed that a BG DD was in place.  However, I noticed that they had billed me at higher rates during the transition period to BG.  I complained and the bill was correctly recalculated without delay, but you do need to check carefully.

You also need to be aware that although you may have been in credit at the meter reading, there may not be enough in the kitty to pay the final bill, so that could cause problems.  If The Mysterious Third Party decides to invent a closing reading that is higher than the actual reading then the final bill may also be higher than you were expecting.  This could actually be slightly to your benefit (the same figure will,be used for the new company's opening reading) because you'd be paying for the difference at the old rate.

If you're confident that you'll remain in credit after the final bill (perhaps making a top up payment if necessary) then you may decide it's better to cancel the DD to stop even more money being taken.  The risk is that if the losing company is really awkward you might have to go to the Ombudsman and argue that any fees or increased rates were unjustified.