Understanding Energy Bills

AsianAdventures

This is quite an embrarrassing thread to have to post for what should now be a fully functioning adult. But, it's time to admit that maybe I don't understand how my gas and electricity bills work.

Prepandemic, I was paying a flat £56.00 per month plus the odd top up at quarterly bills.

I'm now at £131.00 per month with what is showing as over £300.00 credit on my account (as of today when my direct debit went through). Yet E.On are still suggesting that my minum payment should be upped to £229.00 per month. If there is credit on my account, I really don't see how I could then be in defecit at billing period and therefore need to increase my payments? Can somebody please explain?

My smartmetres show a weekly usage of less than £20.00 per week but when I've contacted E.On to complain about the constant hikes on what was sold as a fixed tarrif, they are telling me that the increased payments correlate with my smart metre readings, so what are they seeing that I am not? Am I being ripped off, or is there something I'm not seeing or understanding?

Carrot007

I can try, I am often bad at explanations ;-)

All that is fixed in tarrifs is the rate. You use more you pay more you use less you pay kless. Knowing nothing you probably did not give accurate figures to generaate an accurate monthly figure.

Also, being in credit is expected at this time of the year as usage is obviously a lot more in winter. Think of cost as a bell curve and the same monthly fee is on the whole to most people a good thing rather than paying £20 in June and £300 in Jan. Your supplier build up an excess credit that you use over winter.

Which is is not as predicted and you use more will lead to increases in the monthly charge (not the tarrif)..

Hopefully that makes sense.

Sapindus

I recently had a letter from my supplier (Bristol Energy) saying my direct debit needed to go up from £102 a month to £158.  This was despite a "personal projection" that I would spend £1390 a year.  The new DD would mean me paying them £1896 per year.

Furthermore, my first three months with the company (Sept/Oct/Nov) saw me use energy that cost £332, so about £111 a month on average.  OK so I was paying a bit too little.  I reckoned I was probably about £45 in debit to them by now.

The letter I got suggested keeping my account at least two months' worth in credit, to avoid going into debit.  Suggested.  It's not a rule.  That's like me paying them a £200 deposit just for the privilege of being their customer.

So, after 55 minutes on hold to customer services I explained the situation to the nice adviser who agreed to compromise on a DD of £120 a month.  She said she couldn't understand why this is happening to so many people, and her previous caller had had their DD hiked from £30 to £100 a month!  You can imagine the shock and worry that will have caused some little old lady whose phone isn't on a free calls plan.

Strange how this is happening just when the wholesale price of energy has gone up...

Tell them you want your £300 back.

PennineAcute

EON's online account allows you to alter your DD amount (or it did when I was with them).  Have you tried changing it online.

I am now with EON Next and when I fixed with them, they wanted £97 a month and that was with my recent WHD of £140 paid, so I was over £100 in credit.

I just went online and changed the DD to a more realistic amount of £83.

PennineAcute

When does your fix expire?  If over 12-months away, estimate how much you will use for the next 12-months ( add some one for leeway), deduct your £300 credit and divide your answer by 12.  That is how much your DD should be. 

victor2

AsianAdventures said:

This is quite an embrarrassing thread to have to post for what should now be a fully functioning adult. But, it's time to admit that maybe I don't understand how my gas and electricity bills work.

Prepandemic, I was paying a flat £56.00 per month plus the odd top up at quarterly bills.

I'm now at £131.00 per month with what is showing as over £300.00 credit on my account (as of today when my direct debit went through). Yet E.On are still suggesting that my minum payment should be upped to £229.00 per month. If there is credit on my account, I really don't see how I could then be in defecit at billing period and therefore need to increase my payments? Can somebody please explain?

My smartmetres show a weekly usage of less than £20.00 per week but when I've contacted E.On to complain about the constant hikes on what was sold as a fixed tarrif, they are telling me that the increased payments correlate with my smart metre readings, so what are they seeing that I am not? Am I being ripped off, or is there something I'm not seeing or understanding?

What tariff are you on, and when does it end? All fixed tariffs have an end date. If it has already ended, you will be on Eon's standard variable tariff, which has no end date.

The name of your tariff will show in your online account and/or most recent statements.

If you have smart meters (and they are functioning as such), you readings shown on your statements should be accurate. The statements will indicate the reading type. If they have E (for estimated) by them, Eon are not getting your smart meter readings.

Read your meters yourself and see if they are close to the readings shown.

Download whatever statements you can from your online account, if you haven't already, and keep your own copies.

If you check your account balance just after your diurect debit has gone, then the balance could quite possibly show a credit, as a bill has not been produced for maybe as long as a month. However, it does sound like you have a significant credit and it is difficult to see why Eon are proposing a large increase.

Always think of your energy usage in kWh, which is what your are billed for. Your annual usage in kWh can easily be converted into an annual cost. Add 365 times the daily standing charge to the annual kWh cost, divide the answer by 12 and you get a good idea of what your monthly cost should be. You have to do it for both gas and electricity (assuming you have both). Electricity meters read in kWh, so are easy, but gas meters are usally in cubic meters (smart ones should be anyway, rather than imperial) and there is a formula shown on every statement showing the conversion to kWh. It's not difficult but can vary very sllightly from month to month. Multiplying the difference between two readings by 11 will give you a pretty close approximation to the kWh equivalent.

That will be a good start. I'm sure lots of others will be along to offer their thoughts as well...

macman

How is the property heated and hot watered? How large is it? Terrace/semi/detached/flat? Assuming you mean £20pw on each fuel. that's £80pm, so paying £56pm total on DD could not possibly cover your actual usage.
Post your annual kWh usage on each fuel for meaningful advice: £££'s tells us nothing.

QrizB

It would be helpful to knwo what your current tariff is and your estimated annual energy use. You will find all this onfo on your most recent bill.

AsianAdventures said:

This is quite an embrarrassing thread to have to post for what should now be a fully functioning adult. But, it's time to admit that maybe I don't understand how my gas and electricity bills work.

Let's start with the basics. for each mains fuel - electricity and gas - there are two component. There is a price for each unit of energy you use (measured in kilowatt-hours, kWh), plus a daily charge.

Fod example, if your electricity is priced at 20p per kWh and 25p per day, and in one day you use ten kWh, the cost for that day will be (20p x10 + 25p) £2.25.

Prepandemic, I was paying a flat £56.00 per month plus the odd top up at quarterly bills

Have you been with E.On for a number of years? If so they will have a reasonable estimate of your energy use. I don't know how much your "odd top-up" was but if it was £30 or so then your actual bill was closer to £65/month. However energy was quite a lot cheaper two years ago. Energy that cost £65 then could easily cost over £100 now.

I'm now at £131.00 per month with what is showing as over £300.00 credit on my account (as of today when my direct debit went through). Yet E.On are still suggesting that my minum payment should be upped to £229.00 per month. If there is credit on my account, I really don't see how I could then be in defecit at billing period and therefore need to increase my payments? Can somebody please explain?

Are you still being billed quarterly? Depending on exactly when your next bill is due, it's possible that the £300 is for energy you've already used. But I agree that being asked to increase your payments further sounds odd.

My smartmetres show a weekly usage of less than £20.00 per week but when I've contacted E.On to complain about the constant hikes on what was sold as a fixed tarrif, they are telling me that the increased payments correlate with my smart metre readings, so what are they seeing that I am not? Am I being ripped off, or is there something I'm not seeing or understanding?

If you have a smart meter and E.On are able to read it then your bills should be accurate.

By pressing a button on your smart meter you can switch the display from £ to kWh. Could you do this please, and let us know how many kWh of gas and electricity you've used, per month, in recent months?