Calculating new direct debit amount - is this OK to do

tomp2494

I have approx £70 credit in my account. I pay £60 a month, which will go up to £92.40 per month / £1108.80 per year. 

But can I take £350 off of that through council tax rebate and the £200 due in October, to make a direct debit of £63.23 per month? 

The_Fat_Controller

Your bill will only go up by 54% if you are exactly the AVERAGE USER in the UK !

You need to do your sums based on annual usage, standing charges and unit rates.

You energy company do not know you council tax band, that cannot be included.

Edit : The £200 towards your energy bill is not a freebie, it will need to be paid back in the future.

QrizB

Also, where are you getting a £350 council tax rebate from?

tomp2494

QrizB said:

Also, where are you getting a £350 council tax rebate from?

Apologies, poorly worded. It is 350 total, including 150 Council tax rebate 

MWT

tomp2494 said:

I have approx £70 credit in my account. I pay £60 a month, which will go up to £92.40 per month / £1108.80 per year. 

But can I take £350 off of that through council tax rebate and the £200 due in October, to make a direct debit of £63.23 per month? 

I would suggest that you do not do that for two reasons.

#1 The council tax rebate will come to you not your energy supplier so you will still have to pay the same amount each month, you'll just have a little more in your bank account when you get the Council Tax rebate. (assuming it does come as a rebate, not a reduction in the charge).

#2 The £200 in October is to help with the winter payments after the prices most likely go up again in October. I wouldn't suggest you deduct anything from the current payments as you will just end up using half of that £200 before you get to the increases in October.

Finally as suggested above, you need to do your own calculations anyway, based on your expected use and the tariff you will be on from April.

Phlik

tomp2494 said:

I have approx £70 credit in my account. I pay £60 a month, which will go up to £92.40 per month / £1108.80 per year. 

But can I take £350 off of that through council tax rebate and the £200 due in October, to make a direct debit of £63.23 per month? 

I wouldn't, no. Personally I don't bank on any handouts until I've received them, less chance of disappointment 

Robin9

You could pay a lump sum off your account but your DD will not change until your supplier carries out a review -  and that could be 6 months away.

Is that £70 really true or is that what the online account says ?  That can be misleading as it may show the credit/debit at the last statement plus the DD's you have made but no allowance for the cost of energy used.