My monthly direct debit is increasing by c.86% - is this correct or should the max increase be 54%?

sallyd12

Hello, Hoping you can help me to understand why my monthly direct debit payment with British Gas is increasing from £67 to £125 (my account is only in £29 debit). Ive moved onto the variable tariff and the charges are all in line with the Kwp/hr and standard charges mentioned in your other information. Ive already challenged the increase with them and have had it reduced from the original £134 p/mth! The % increase I'm seeing is c.86% but surely the max should be 54% or am I looking at this too simply? Thankyou for any help you can offer.

[Deleted User]

Virtually no one will see their bills increase by exactly 54% as that's the average and hardly anyone is.  

The increase depends on your usage. The DD, in turn, is an assumption of what you'll use, not an actual cost.

It also sounds as if you're moving from a fixed rate to the variable, which means your increase is likely to be much more.

QrizB

Welcome to the forum.

sallyd12 said:

Hello, Hoping you can help me to understand why my monthly direct debit payment with British Gas is increasing from £67 to £125 (my account is only in £29 debit).

Yes, it''s probably correct. Gas prices have risen by around 80%.

Forget the 54% number, it's the increase in the dual-fuel bill for an average customer. It doesn't apply to gas-only customers and doesn't apply if you're not average!

If you can share your estimated annual consumption (it's shown on your bill) we can check the monthly DD for you.

The_Fat_Controller

Entirely possible if coming off a fix and onto the SV rate.

When that happens to me my bills go from an average of £56 to £126 based on my actual average annual usage over two years.

@sallyd12 you need to do the maths, even on £125 you could be underpaying.

sallyd12

QrizB said:

Welcome to the forum.

sallyd12 said:

Hello, Hoping you can help me to understand why my monthly direct debit payment with British Gas is increasing from £67 to £125 (my account is only in £29 debit).

Yes, it''s probably correct. Gas prices have risen by around 80%.

Forget the 54% number, it's the increase in the dual-fuel bill for an average customer. It doesn't apply to gas-only customers and doesn't apply if you're not average!

If you can share your estimated annual consumption (it's shown on your bill) we can check the monthly DD for you.

Thanks so much for the extra info - I wasnt aware that gas had increased that much. 
This is what is shown on my bill issued on 2nd March
Gas: Estimated annual usage: 11002.10 kWh 

Estimated annual cost: £861.69

Electric: Estimated annual usage: 1742.00 kWh
 Estimated annual cost: £648.32

QrizB

sallyd12 said:

QrizB said:

Welcome to the forum.

sallyd12 said:

Hello, Hoping you can help me to understand why my monthly direct debit payment with British Gas is increasing from £67 to £125 (my account is only in £29 debit).

Yes, it''s probably correct. Gas prices have risen by around 80%.

Forget the 54% number, it's the increase in the dual-fuel bill for an average customer. It doesn't apply to gas-only customers and doesn't apply if you're not average!

If you can share your estimated annual consumption (it's shown on your bill) we can check the monthly DD for you.

Thanks so much for the extra info - I wasnt aware that gas had increased that much. 
This is what is shown on my bill issued on 2nd March
Gas: Estimated annual usage: 11002.10 kWh 

Estimated annual cost: £861.69

Electric: Estimated annual usage: 1742.00 kWh
 Estimated annual cost: £648.32

Thanks for the numbers. For both fuels, on national average rates:

Current cap - £996/yr, £83/month

Cap from April - £1569/yr, £131/month.

The_Fat_Controller

@sallyd12 from those figures your new DD of £125 is bang on for the period until 1st October 2022.

However, after that date you will be underpaying as there is no way the post October cap is going down, be prepared for another shock !

sallyd12

QrizB said:

sallyd12 said:

QrizB said:

Welcome to the forum.

sallyd12 said:

Hello, Hoping you can help me to understand why my monthly direct debit payment with British Gas is increasing from £67 to £125 (my account is only in £29 debit).

Yes, it''s probably correct. Gas prices have risen by around 80%.

Forget the 54% number, it's the increase in the dual-fuel bill for an average customer. It doesn't apply to gas-only customers and doesn't apply if you're not average!

If you can share your estimated annual consumption (it's shown on your bill) we can check the monthly DD for you.

Thanks so much for the extra info - I wasnt aware that gas had increased that much. 
This is what is shown on my bill issued on 2nd March
Gas: Estimated annual usage: 11002.10 kWh 

Estimated annual cost: £861.69

Electric: Estimated annual usage: 1742.00 kWh
 Estimated annual cost: £648.32

Thanks for the numbers. For both fuels, on national average rates:

Current cap - £996/yr, £83/month

Cap from April - £1569/yr, £131/month.

So my payment is slightly under then. Appreciate your help understanding this properly - its a mindfield of info out there and at least now I can rest assured that whilst its still upsetting and worrying that the payment is so much higher, at least I know its correct for my usage. 

Gerry1

If it's any consolation, your estimated gas consumption is slightly below the average 12000kWh and your estimated electricity consumption is well below the average 2900kWh.

But note the big caviat.  It's important to establish annual kWh consumption from actual meter readings, estimates are just that and could be way out.

Send meter readings on 31 March so that you won't risk paying for energy usage until that date at the higher rates that apply from 1 April.  Then make sure you send meter readings every month.

You can choose to have Variable Direct Debit and then you only pay for the exact amount used in the previous billing period.  It means lower bills in summer and higher ones in winter, which may not suit everyone, but at least you're then in full control.

sallyd12

Gerry1 said:

If it's any consolation, your estimated gas consumption is slightly below the average 12000kWh and your estimated electricity consumption is well below the average 2900kWh.

But note the big caviat.  It's important to establish annual kWh consumption from actual meter readings, estimates are just that and could be way out.

Send meter readings on 31 March so that you won't risk paying for energy usage until that date at the higher rates that apply from 1 April.  Then make sure you send meter readings every month.

You can choose to have Variable Direct Debit and then you only pay for the exact amount used in the previous billing period.  It means lower bills in summer and higher ones in winter, which may not suit everyone, but at least you're then in full control.

Thanks Gerry, I have a smart reader so bills are accurate. I'll have a think about the variable direct debit as that could work out quite well for me. Appreciate your advice

cx6

does anyone know if you have the right to refuse this - for example if BG said £134 a month do you have the right to say eg no, you can only take £90 ?