Direct debit 3x

racracrac

Please help me to understand why the price cap rise is 54% but my monthly direct debit has trebled and not just gone up by around the 54%.  I got the eon fix which was a fix at the new price cap rate. Is it because the direct debit includes other the other charges too that have gone up not just the price cap?

racracrac

Thanks in advance 

victor2

racracrac said:

Please help me to understand why the price cap rise is 54% but my monthly direct debit has trebled and not just gone up by around the 54%.  I got the eon fix which was a fix at the new price cap rate. Is it because the direct debit includes other the other charges too that have gone up not just the price cap?

A new fixed tariff will be considerably above the Ofgem capped price. Which tariff have you gone on to?

Were you with Eon before? If so, did you have a debit balance to carry over and pay off?

Have you been using actual (or smart meter) readings, providing them yourself or letting Eon estimate?

What annual usage has been used to calculate your direct debit?

racracrac

Thank you. It was the eon next v11 online - a deal for those who were already with eon. “E.ON’s Next Online V11 tariff promised prices fixed for a year, set at the same level as Ofgem’s new capped rate.” I’m thinking maybe the price increase is also due to standing charges too? Just trying to get my head around it all. Also to answer your question - Yes we have a smart metre fitted and we were in credit. 

Thanks for your reply 

QrizB

racracrac said:

Thank you. It was the eon next v11 online - a deal for those who were already with eon. “E.ON’s Next Online V11 tariff promised prices fixed for a year, set at the same level as Ofgem’s new capped rate.” I’m thinking maybe the price increase is also due to standing charges too?

What was your previous tariff? Were you on the variable rate, or did you have a fix before that has just ended?

victor2

racracrac said:

Thank you. It was the eon next v11 online - a deal for those who were already with eon. “E.ON’s Next Online V11 tariff promised prices fixed for a year, set at the same level as Ofgem’s new capped rate.” I’m thinking maybe the price increase is also due to standing charges too? Just trying to get my head around it all. Also to answer your question - Yes we have a smart metre fitted and we were in credit. 

Thanks for your reply 

What is your actual annual usage in kWh? Calculate the cost of that for each fuel on your old tariff and the new one. 1/12 of the new cost should be close to your monthly direct debit. If you need help calculating it, just show the usage and rates here and I'm sure someone will oblige.

pochase

Where you on fixed tariff before? Than your increase will be much higher than the 54%, which are not a fixed percentage, but based on the "average" user.

Are you maybe in debt, in which case the higher debit order will also pay back this debt.

Ultrasonic

The percentage difference for any individual will depend on what tariff they were on before, what tariff they're moving to, their energy use in kWh and whether their previous DD payments were covering their bills or not. The 54% figure is no sort of standard number that everyone should expect to see I'm afraid.

The details of your particular case will determine whether the x3 increase you're seeing is correct, but I'm afraid it's certainly possible that it is.

racracrac

Thank you. Yes I didn’t think about my previous rate. I was on a fix which was a good rate. so yes it was under the previous price cap which would explain the difference not being the 54%. That makes sense. Thanks for the suggestions. 

[Deleted User]

I.m still on Next Online v7 (until October 1st 2022).  I worked out what I would be paying at the Ofgem cap level from April 1st if I had to.  My spreadsheet is telling me that if March's average rates stay as they have been since the beginning of the month I'd be getting a bill of circa £90.04 for both utilities but 31 days of the same usage post April 1st would increase this to circa £171.05 with even more post October 1st when I need to decide what to do.