Energy Direct Debit Excess Charging

Stayalert

Hello to all interested people,
Like many I was moved to another energy supplier last September when my previous supplier failed. I was put onto the "Energy Price Cap" tariff and remain on it. No changes were made to my monthly Direct Debit (DD) payments until I received an email in February 2022 telling me that my March 2022 payment would increase by £123 and that I could make a "one of" payment of £245 to reduce my negative balance, which I did. In March 2022, following the "Price Cap" increase announcement, I received another email telling me that the monthly DD payment would increase to £300 in April 2022.  
My new energy supplier very kindly advises me, in each monthly statement, what my estimated annual consumption is. So, I decided to use this information and the charges that would be made for each KWhr of energy that I may use together with the Standing Charge to calculate what my annual costs should be based on the estimated usage and the present charges. 
I challenged my energy supplier about the rather large discrepancy between what I calculated my costs would be and what they wanted me to pay over the next twelve months. It was clear that they were charging for "anticipated" increases in energy prices in October 2022 and adding this into my monthly DD payments. It was also clear that they were not considering the Government Loan that is scheduled for the Autumn of 2022. I requested a review of my monthly payments and, following this review, my monthly payments have been reduced to £235. a saving of £65 per month.
I realise that there may well be another significant price increase later in the year that will only be modified slightly pay the Government Loan (£200?) and that the DD will have to increase again in a few months. I also realise that in taking the view that my supplier did over future increases in order for customers to build up a healthy positive balance on their accounts that for many people could assist them in coping with the future increases without too much of a shock. However, I feel that savings at £65 per month over the next six months is much better off in my bank account than in my energy suppliers bank account. I can only imagine the sum of money that will be built up by suppliers who do what mine is doing; and it must be staggering.
I would advise everyone to do the fairly simple calculations that are required to check whether the DD they are paying each month is a fair one and to challenge their supplier if it seems unfair. A word of caution though, make sure that the money you may save will be put aside for future energy bills.

eskbanker

I'd suggest that this is more to do with the principles of billing calculation rather than the method of payment, so it's probably better suited to the energy board:

https://forums.moneysavingexpert.com/categories/energy

Zanderman

Stayalert said:

Hello to all interested people,
Like many I was moved to another energy supplier last September when my previous supplier failed. I was put onto the "Energy Price Cap" tariff and remain on it. No changes were made to my monthly Direct Debit (DD) payments until I received an email in February 2022 telling me that my March 2022 payment would increase by £123 and that I could make a "one of" payment of £245 to reduce my negative balance, which I did. In March 2022, following the "Price Cap" increase announcement, I received another email telling me that the monthly DD payment would increase to £300 in April 2022.  
My new energy supplier very kindly advises me, in each monthly statement, what my estimated annual consumption is. So, I decided to use this information and the charges that would be made for each KWhr of energy that I may use together with the Standing Charge to calculate what my annual costs should be based on the estimated usage and the present charges. 
I challenged my energy supplier about the rather large discrepancy between what I calculated my costs would be and what they wanted me to pay over the next twelve months. It was clear that they were charging for "anticipated" increases in energy prices in October 2022 and adding this into my monthly DD payments. It was also clear that they were not considering the Government Loan that is scheduled for the Autumn of 2022. I requested a review of my monthly payments and, following this review, my monthly payments have been reduced to £235. a saving of £65 per month.
I realise that there may well be another significant price increase later in the year that will only be modified slightly pay the Government Loan (£200?) and that the DD will have to increase again in a few months. I also realise that in taking the view that my supplier did over future increases in order for customers to build up a healthy positive balance on their accounts that for many people could assist them in coping with the future increases without too much of a shock. However, I feel that savings at £65 per month over the next six months is much better off in my bank account than in my energy suppliers bank account. I can only imagine the sum of money that will be built up by suppliers who do what mine is doing; and it must be staggering.
I would advise everyone to do the fairly simple calculations that are required to check whether the DD they are paying each month is a fair one and to challenge their supplier if it seems unfair. A word of caution though, make sure that the money you may save will be put aside for future energy bills.

As eskbanker says, probably better posted in the energy boards. 

One comment springs to mind through - depending on who your new supplier is (you haven't named them) - your money might actually be better with the energy supplier, as some of them pay interest on excess money, at better rates than the banks.  Ovo, if I recall correctly, pay 3%. You won't get that with your bank.

Westie983

I think you will have a better response in the Energy board. I will move the thread when I am able to. 

Westie983