Energy bill goes from £80 a month to £650

Dancing_Heart

My monthly cost has risen from £80cm to £650pcm. 

I don’t understand the price cap of 54%. Based on 54%  I expected a max bill of roughly £120-130pcm. 

This is over a 600% rise. 

I’m with Bulb, on Direct debit. 

Any advice appreciated. 

MWT

The cap isn't 54%, that is just an average number based on typical use for the increase in the capped variable tariff, it takes no account of previous debt, or your actual use...

... and the monthly DD amount is not your bill, it is just a contribution into a pot from which your actual bill amount will be deducted...

So let's start with the basics, what is the balance on your account at the moment and have you perhaps recently given Bulb a meter reading which may have resulted in a much larger bill than usual?

MattMattMattUK

Dancing_Heart said:

My monthly cost has risen from £80cm to £650pcm. 

I don’t understand the price cap of 54%. Based on 54%  I expected a max bill of roughly £120-130pcm. 

That is not how the price cap works.

Dancing_Heart said:

This is over a 600% rise. 

I’m with Bulb, on Direct debit. 

Any advice appreciated. 

I am guessing from that amount your existing payments were far too low. On the bill you have recieved where they have increased your Direct Debit can you let us know the annual usage figures, the tariff you are now on and also whether you have any debt. I suspect it is a combination of having built up a debt because your previous direct debit was too low and coming off of an old fixed tariff and going onto the new SVR, which means that your unit rate may have more than doubled and your will also need to pay off the debt. 

Dancing_Heart

My balance was in credit, it’s now in debt. 

I gave them a reading on 1st April. 

pochase

Not your cost has risen, what has risen is your direct debit.

A few questions.

1. Have you come of a fixed rate? The 54% is just a number for an average energy user and and only for SVT to SVT.
2. Is your account in debt or credit?
3. Did you submit regular meter readings or is this based on estimates?
4. What was your energy use the last 12 months for electricity and gas?

The increase is extreme of course, but all depends on the answer to the above questions. It is very unlikely that the 650£ is realistic, but it is possible if you are in debt, use much more than the 80£ covered by your direct debit, and come of a cheap fixed rate,

MattMattMattUK

Dancing_Heart said:

My balance was in credit, it’s now in debt. 

I gave them a reading on 1st April. 

What will likely have happened is that your bill totalled up all your monthly direct debits and all of your usage and there was a shortfall, which is where the debt has come from. That, in addition to the increase in standing charges and unit costs has meant your monthly direct debit has been increased to clear the debt and cover the increased cost of ongoing usage. 

Dancing_Heart

It was all on track with me submitting regular payments and readings. 

I did pay a low £40 for while as I had so much credit. Thank goodness I did have a credit to buffer this large increase. 

BUFF

do you know your actual usage in kWh?
Were you on a cheap fixed tariff that has either just ended or is about to end? If so, what tariff are they now pricing?
If you were submitting regular readings which they were using & running regularly in credit it is unlikely that an 8-fold increase is correct (it could easily be 2-3 times though)

Jaybee_16

I wasn't aware Bulb had fixed tariffs 

theoretica

If you take the kWh you used over the past 12 months, multiply it by your current tariff and add 365 x standing charges what do you get?

MWT

Jaybee_16 said:

I wasn't aware Bulb had fixed tariffs 

They don't...