SEE Standard tariff confusion over 30 minute readings and monthly payment

[Deleted User]

We just moved into a new build apartment complex with SSE as the electric provider. We did the comparisons and decided on the Standard tariff based on these new remote electric meters. We were told by SSE that they read the meters eery 30 minutes so our usage is accurate which is great, but they have decided we need to pay a set amount each month regardless of the usage. They already had 2 months usage when we set this up so i'm lost, can anyone advise from experience or knowledge:

1. Are we forced to be on this fixed monthly payment regardless of how much we use as this is stealing money to me when they know exactly how much we use?
2. Has anyone been on these smart remote meters with standard plan and forced them to just send the actual bills each month with usage which we then pay instead of this "budget plan" thing they are doing.
3. I'd look to tell them to stop the budget thing and just take the actual payments each quarter but this reminds me the way BT and others used to do budget plans each month, at the end of the year my Mum had £120 in credit which they did nothing to tell her about or offset against bills.

Thanks!

dbks

eh5 said:

We just moved into a new build apartment complex with SSE as the electric provider. We did the comparisons and decided on the Standard tariff based on these new remote electric meters. We were told by SSE that they read the meters eery 30 minutes so our usage is accurate which is great, but they have decided we need to pay a set amount each month regardless of the usage. They already had 2 months usage when we set this up so i'm lost, can anyone advise from experience or knowledge:

1. Are we forced to be on this fixed monthly payment regardless of how much we use as this is stealing money to me when they know exactly how much we use?
2. Has anyone been on these smart remote meters with standard plan and forced them to just send the actual bills each month with usage which we then pay instead of this "budget plan" thing they are doing.
3. I'd look to tell them to stop the budget thing and just take the actual payments each quarter but this reminds me the way BT and others used to do budget plans each month, at the end of the year my Mum had £120 in credit which they did nothing to tell her about or offset against bills.

Thanks!

Can't comment on smart meters, but when we were supplied by SSE, we paid on receipt of bill.
Options on how to pay ranged from a cheque or Postal Order (remember them!), to paying cash at the bank or Post Office, to variable direct debit (i.e. they collected what it said on the bill as being owed). I'm sure they offered a telephone payment service too. (i.e via debit or credit card)
I think we just paid via Faster Payments . We were not with them long.

There may have been specific payment terms associated with some of their tariffs, but we like you were on their standard variable tariff.

MWT

The cheapest rates will be available with a direct debit, if you don't want that then you can ask them to change, but the cost will be higher...

RecoveringAndy

As others have mentioned direct debit is the cheapest way to pay.

Smart meters report back actual usage so, all being well, there should be no more estimated bills. You'll be billed monthly based on actual usage.

The amount you pay by direct debit though will still be your estimated annual usage divided by 12. This means you pay the same each month rather than less in the summer and more in the winter. Any surplus that you pay in summer will sit on your account as credit to be used by the more expensive monthly bills. 

If you want to pay only after each bill, your not normally able to do this via DD and will be switched to a more expensive tariff.

tux900

Energy suppliers are perfectly able to support variable direct debits (just like other businesses that use direct debit payments e.g. credit card providers) but there are significant benefits to them in not doing so such as the money they make from you being in credit with them over the summer months. It's effectively an interest-free loan to them.

One might argue it is better for many customers too as most people's income remains the same throughout the year and yet energy-related outgoings obviously increase significantly over the winter months. A fixed direct debit spreads this additional cost over the whole year and thus helps with budgeting and affordability.

[Deleted User]

Thanks everyone, appreciate the advice and your experiences.

It does make sense that we are paying a budgeted amount but, bugs me that they know our usage and still take an annual estimated amount. As long as we get the credit back and there's no horror stories of they being difficult with this then, it's good.

I'll message them and ask them to explain what they do when we are a large excess in credit, like £100 or the terms of the DD.

thanks a lot!

Carrot007

tux900 said:

but there are significant benefits to them in not doing so such as the money they make from you being in credit with them over the summer months. It's effectively an interest-free loan to them.

Let me laugh at you unsderstanding of the utility market in this country.

[Deleted User]

eh5 said:

Thanks everyone, appreciate the advice and your experiences.

It does make sense that we are paying a budgeted amount but, bugs me that they know our usage and still take an annual estimated amount. As long as we get the credit back and there's no horror stories of they being difficult with this then, it's good.

I'll message them and ask them to explain what they do when we are a large excess in credit, like £100 or the terms of the DD.

thanks a lot!

As you have just moved in, the supplier has no knowledge of your Estimated Annual Usage. Therefore, it will base the EAC on the past historical usage and then adjust it based on your actual consumption over time. £100 is not a lot of credit going in to a Winter season. Most suppliers are demanding that consumers maintain a credit balance of at least one month’s supply cost. Why - because suppliers are required to pay their wholesalers in advance of supply. Your credit balance is fully protected by Ofgem.

We should also all be careful what we wish for. Yes, consumer credit balances do provide the supplier with cashflow to run the business. If the system was changed to monthly retrospective billing then all suppliers would have to increase their borrowing. For small/new companies this may prove to be very expensive. These costs would then be passed on to consumers in the form of higher bills.