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Martin Lewis: Do you pay energy by monthly direct debit? Three urgent must-knows before 1 April
On Friday 1 April, the harsh reality of the huge energy price hikes will be truly felt by millions of people. As we've been warning for months, the energy price cap will rise by an average 54%, and the vast majority of people will see their bills soar. Here, MoneySavingExpert.com founder Martin Lewis provides his latest energy briefing for those that pay by direct debit in a video (with transcript)...
I'm a bit confused. Bulb have failed to produce a bill since January and have made ridiculously high estimates. I spoke to them and they recommended cancelling the direct debit until they sort it out. I asked and they said I wouldn't pay more from paying on rexroth of a bill rather than direct debit. Did they advise me incorrectly?
.. I asked and they said I wouldn't pay more from paying on rexroth of a bill rather than direct debit. Did they advise me incorrectly?
Their advice is correct, Bulb are one of the companies that do not charge more if you pay on receipt of the bill instead of direct debit (Octopus is another).
An alternative to cancelling dd may be to change to monthly variable dd, so you pay as you use, I have done this with Shell. At present I prefer a clear link between usage and bill, and I can’t be bothered disputing suppliers high fixed monthly dd payments as I have had to do in the past. Ok the winter bills will be higher but I still prefer it this way.
Discovered today not all direct debit are created equal. Shell Energy offer a fixed monthly deal or a pay for what you use dd. Only the the fixed amount attract the lower price.
I cancelled my dd with pure planet when they folded. And have been paying for what I use since. Having watched the video. I decided to do back to dd. Checked with Shell today in the hope I could still pay for what I use on dd. But that would still be at the higher cap.
I am on Universal Credit and I have a deduction taken directly from this towards my Electricity Supplier. Does this mean I would benefit from this reduction in Standing Charges or penalised?
My supplier (Shell Energy) is putting my monthly DD up by 250% !! Now, I know the 54% figure is only an 'average', but on that basis some people must be getting little or no increase at all. When I questioned SE about it their answer was basically that as the new unit cost was X and my annual average usage was Y, then the new figure represents (X x Y) / 12. What they will not - or can not - explain is how their unit costs have risen so much.
According to the old definition, 'fuel poverty' was when your fuel costs exceed 10% of your income - well, my new monthly fuel costs will exceed 40% of my monthly pension. And of course, it will only get worse later in the year....
