4x increase in monthly direct debit - is this right?

Charlongo

Ok so I'm fully aware of what is going on with the energy price increases.  My fixed plan ends end of April with Scottish Power.  I currently pay £60 a month and just looked at the plans to change to end of April and they go up to £254! I knew if would go up but I thought about double, not four times the amount!  Is this right?  Should I contact Scottish Power and try to get this reduced or is there absolutely not point! I'm gonna really really struggle to pay this.  Feel really hopeless!

MWT

You should also have a number there for not taking a new fix and going onto their variable tariff...

If you want to tell us a little more about the plans you have been offered (standing charge and kWh rate) along with your actual usage over the last year (use to meter readings around a year apart, not estimates), then we can help more.

TheMilkmansDad

Sounds about right if they are quoting a new fixed which you (in general) should not accept, just drop on to the SVR tariff. It will still be an increase in DD amount but hopefully not by as much!

Is your account currently in debit or credit? So is the £60 a month covering your current usage?

Mstty

If you could let us know your current energy usage over the last year and what you currently pay for your energy as in price per kWh and if you are in debit or credit it's possible to give you a good idea of what your new payments will be on a standard variable tariff which is protected by the price cap from 1st April.

QrizB

Charlongo said:

Ok so I'm fully aware of what is going on with the energy price increases.  My fixed plan ends end of April with Scottish Power.  I currently pay £60 a month and just looked at the plans to change to end of April and they go up to £254! I knew if would go up but I thought about double, not four times the amount!  Is this right?

Yes, that's right. The April capped variable tariff will be roughly double the rates of your ending fix, and Scottish Power's new fixed rate plans that you're seeing are roughly double that again. so a 4x increase.

If you don't want to pay 4x as much, let your current fix expire without choosing a replacement. You'll be moved onto the capped variable tariff.

Do note the cap is expected to increase again in October but no-one knows how much by.

Chrysalis

You need to look at it properly, not just the direct debit.

Check the unit rates and standing charges on your old fixed tariff and compare it to your new one.

If you have fixed from a pre October tariff to a new fixed tariff, that could well be close to a 4x cost increase, but until you check it you just dont know.

If after checking you think they trying to make you build up a credit balance, then a variable direct debit is an option.

Charlongo

Thanks for your help everyone. The account is has always been in credit and the £60 does seem to have covered everything fine. 
The tariff I am on is the Greener Future April 2022 Sm1.
My bill in Feb 2022 says my gas usage in the past 12 months was 10,470 kWh and electricity 1,825 kWh. 
Gas unit rate Unit rate 2854.5 kWh x 2.894p  Standing Charge 53 days x 24.480p 
Electricity Unit rate 343 kWh x 16.484p Standing Charge 52 days x 21.540p 

Electricity 

Fixed Price May 2023 M3

Payment method

Monthly direct debit

Standing charge

44.74p

Primary unit rate

55.28p
Gas 

Fixed Price May 2023 M3

Standing charge

27.22p

Primary unit rate

18.85p

QrizB

Charlongo said:

My bill in Feb 2022 says my gas usage in the past 12 months was 10,470 kWh and electricity 1,825 kWh. 
Gas unit rate Unit rate 2854.5 kWh x 2.894p  Standing Charge 53 days x 24.480p 
Electricity Unit rate 343 kWh x 16.484p Standing Charge 52 days x 21.540p

That's great, thank you.

If you continue using that amount of energy, from April your annual bill will be around £1553, which is about £130/month.

Mstty

Charlongo said:

Thanks for your help everyone. The account is has always been in credit and the £60 does seem to have covered everything fine. 
The tariff I am on is the Greener Future April 2022 Sm1.
My bill in Feb 2022 says my gas usage in the past 12 months was 10,470 kWh and electricity 1,825 kWh. 
Gas unit rate Unit rate 2854.5 kWh x 2.894p  Standing Charge 53 days x 24.480p 
Electricity Unit rate 343 kWh x 16.484p Standing Charge 52 days x 21.540p 

Electricity 

Fixed Price May 2023 M3

Payment method

Monthly direct debit

Standing charge

44.74p

Primary unit rate

55.28p
Gas 

Fixed Price May 2023 M3

Standing charge

27.22p

Primary unit rate

18.85p

Hi Charlongo.

With your usage I hope you haven't signed up for the fixed price May 2023 M3? I think you were just showing that as their fixed rate offer?

You would be better off letting whatever deal you are on now expire and going onto the standard variable rate for which the above post has you estimated monthly price of £130/month.

Of course don't forget your council tax rebate of £150 to put towards you energy costs due to arrive in April from your local council so that helps a bit. That's if you live in council tax band A-D

kuepper

I've been asked/told by Shell Energy to increase my DD by 140% so mine doesn't seem too bad compared to that!

kuepper

Of course don't forget your council tax rebate of £150 to put towards you energy costs due to arrive in April from your local council so that helps a bit. That's if you live in council tax band A-D

Is it certain we're getting it as one lump sum of £150? I'd thought it would be spread out - it'll affect my monthly banking reward conditions if it's a one-off payment as my DD won't count in month 1 because £150 will mean a rebate in April in my case. Only a few quid I'll lose but given what's happening generally it'd be annoying to lose any money