Is it bad for this forum to recommend variable DD payments

Mstty

Ultrasonic said:

Chrysalis said:

I think it is a fair to point out that current fixed DD is not the same as was previously, its going to be subject to its own jumps every 6 months now.

True, and if cap reviews become more frequent even more so. It should still help to smooth the payments out though, and give customers some guidance of costs.

It's actually a tricky question what appropriate DD payments should be right now. Would it be appropriate for energy companies to set current payment amounts with some consideration to a likely increase in October?

This is the thought I have been having as well. As long as energy companies explain that they are trying to get you ahead for the expected rise in October then at least customers have been told and have a choice.

As I have said on another thread we are fixed now for 2 years at the current SVT with Eon Next (zero exit charges) however we don't know what the state of the energy market will be in 2 years time so bunging £30 each month away just incase.

Mstty

Northern_Wanderer said:

I calculated my annual energy usage at todays rates to be £153 per month. My balances on gas and electric are about £0 now. I want to change to variable monthly DD on gas and start a savings pot. Should I factor in an extra say 20% now (£30 month) and start saving that, then I will be building up a nice credit into my energy pot for next winter.

Is that going to be enough to keep me warm and the lights on next winter?

Personally if you move to variable now the next 6 months will be very cheap but suspect your bills October 2022- Apr 2023 will average £300 if not more.

Factor in the £200 coming off your bill October to be paid back in installments from Apr 2023

We have a similar monthly estimate well 177.70 and my calculations started this thread so you can see where we would be if we paid variable we would be hit by massive bills Oct-Apr if on the SVT and the expected 30% increase in charges.

I would personally stay laying the £153 but as long as you work it out and save enough to not ruin the winter months either way is good.

wild666

jimjames said:

Mstty said:

So it is clear there will be a rise in October and once explaining the basics then scaring them finally with another rise in October I still feel that the very basics should be yearly usage/the current price cap and SC ÷ 12 and that's their payment.
 

Problem is that very many people don't actually know their usage. All they know is the DD they pay each month and not even whether than covers their use. There is a big education gap, hopefully the current situation will have opened a few eyes.

I know my usage to within a few pence on the bill, I have a SMETS 1 smart meter that Octopus can read it gives me daily electric reads but not the gas which I don't mind as the usage for gas is between 1 and two units per week, 22.78 kWh.

Northern_Wanderer

Mstty said:

Northern_Wanderer said:

I calculated my annual energy usage at todays rates to be £153 per month. My balances on gas and electric are about £0 now. I want to change to variable monthly DD on gas and start a savings pot. Should I factor in an extra say 20% now (£30 month) and start saving that, then I will be building up a nice credit into my energy pot for next winter.

Is that going to be enough to keep me warm and the lights on next winter?

Personally if you move to variable now the next 6 months will be very cheap but suspect your bills October 2022- Apr 2023 will average £300 if not more.

Factor in the £200 coming off your bill October to be paid back in installments from Apr 2023

We have a similar monthly estimate well 177.70 and my calculations started this thread so you can see where we would be if we paid variable we would be hit by massive bills Oct-Apr if on the SVT and the expected 30% increase in charges.

I would personally stay laying the £153 but as long as you work it out and save enough to not ruin the winter months either way is good.

I do have the last three years of monthly usage so I'm going to do some more sums and post back. I would be paying monthly variables but saving the rest of the £153 each month for the winter usage plus the £30 extra to (maybe) cover the Oct rise.

Thrugelmir

Northern_Wanderer said:

Sea_Shell said:

What effect would the drying up of cashflow have on the suppliers?  Especially the smaller ones who have survived until now.

You could "stick it to them" and not give them a penny credit.

Which could trigger another round of insolvencies, more SoLR claims, increasing costs for everyone.

The law of unintended consequences.

Absolutely, that is an unknown. But at least they wouldn't go under with all our money....that we have to pay back in our bills. That is my point. It might just be the kick the government needs to do something.

The nanny state of recent decades has a lot to answer for. At a point people themselves as individuals have to take the initiative. Energy in the past used to consume a large proportion of peoples incomes. 

Ultrasonic

Northern_Wanderer said:

Mstty said:

Northern_Wanderer said:

I calculated my annual energy usage at todays rates to be £153 per month. My balances on gas and electric are about £0 now. I want to change to variable monthly DD on gas and start a savings pot. Should I factor in an extra say 20% now (£30 month) and start saving that, then I will be building up a nice credit into my energy pot for next winter.

Is that going to be enough to keep me warm and the lights on next winter?

Personally if you move to variable now the next 6 months will be very cheap but suspect your bills October 2022- Apr 2023 will average £300 if not more.

Factor in the £200 coming off your bill October to be paid back in installments from Apr 2023

We have a similar monthly estimate well 177.70 and my calculations started this thread so you can see where we would be if we paid variable we would be hit by massive bills Oct-Apr if on the SVT and the expected 30% increase in charges.

I would personally stay laying the £153 but as long as you work it out and save enough to not ruin the winter months either way is good.

I do have the last three years of monthly usage so I'm going to do some more sums and post back. I would be paying monthly variables but saving the rest of the £153 each month for the winter usage plus the £30 extra to (maybe) cover the Oct rise.

Apologies if I'm telling you something obvious but if you really want to get into this, breakdown your likely usage and cost estimates into the period from now till the end of September, and then from October onwards. The fact that you'll be using more energy for heating over winter will bias cost estimates up I'm afraid. 

Northern_Wanderer

Here goes, I have done my maths for Electric and the Gas...taken one years usage and calculated the next 6 months at current rates, then assumed a 30% increase for the next 6 months starting in October. I have not taken the £200 loan not loan into account.

Based on 2488 KWH ELECTRIC total estimated cost £1015.46 year / £84.62 month.

Based on 12492 KWH GAS total estimated cost £1240.79 year / £103.40 month.

Total ESTIMATED Cost of Gas & Electric £2256.25 per year or £188.02 per month. OUCH.

So I will continue to pay electric on variable whole DD monthly billing as it doesn't change much month to month.

I have to decide whether to stick with 6 monthly billing on a fixed monthly amount for gas (and worry about them going bust with about £600 of my money going into winter that I could be earning interest on) or switch to monthly whole amount DD and start saving now so that I am budgeting for the total costs for the year.....

EDIT

SC calculated at 365 days and then divided by 12 to give monthly amount.

Mstty

Northern_Wanderer said:

Here goes, I have done my maths for Electric and the Gas...taken one years usage and calculated the next 6 months at current rates, then assumed a 30% increase for the next 6 months starting in October. I have not taken the £200 loan not loan into account.

Based on 2488 KWH ELECTRIC total estimated cost £1015.46 year / £84.62 month.

Based on 12492 KWH GAS total estimated cost £1240.79 year / £103.40 month.

Total ESTIMATED Cost of Gas & Electric £2256.25 per year or £188.02 per month. OUCH.

So I will continue to pay electric on variable whole DD monthly billing as it doesn't change much month to month.

I have to decide whether to stick with 6 monthly billing on a fixed monthly amount for gas (and worry about them going bust with about £600 of my money going into winter that I could be earning interest on) or switch to monthly whole amount DD and start saving now so that I am budgeting for the total costs for the year.....

How about you out the extra gas payment over your actual usage into a separate savings account or premium bonds if you don't trust an energy company with your money.

Mind you it is all protected and when Symbio went bust for us our credit was shifted over to EON Next fairly swiftly.

Northern_Wanderer

Mstty said:

How about you out the extra gas payment over your actual usage into a separate savings account or premium bonds if you don't trust an energy company with your money.

Mind you it is all protected and when Symbio went bust for us our credit was shifted over to EON Next fairly swiftly.

Yes I think that's what I'll do, save the extra each month. I know it's protected, I just don't like the fact that we are ALL paying for the failures in our bills now, and the crisis is not over yet.....so how much is potentially going to get whacked onto us in future? If they didn't have all the credits when they folded, the costs in our bills would be less now. I didn't enjoy the waiting or the hassle getting my money back so rather not have to do that again. Anyway, I'm glad I've worked it out, I can be prepared and know that I will be ok next winter, be warm and fed too.

pochase

Nice table.

Just one very small remark. You have the same standing charge for months with 28, 30 and 31 day. I know we are talking here about a difference of a little over £3 over the time period.