Are we all now asking our electricity providers to reduce our monthly payments?

ProDave

I am.  I have just submitted my request to Octopus. (one of the better suppliers imho who are open to reasonable suggestions usually)

My argument goes, I am on a fixed tariff to next March which covers most of next winter.  The Government will pay a £400 grant into my account in 6 monthly installments starting in October.  so if I kept my payments the same my account would be £400 too much in credit at the end of the winter.

So I have suggested an immediate reduction in my monthly DD of £40 on the basis that over the next 10 monthly payments that would have accounted for the grant payment and prevent my account being £400 too much in credit.  That also coincides with the time I would be ending my fixed period so would then be reviewing the monthly payment again depending on what the new rate is then.

I will let you know what Octopus say.

Anyone else doing the same?

Mstty

It depends as Ofgem are looking at a quarterly price cap review which means the next one is Jan 2023 and is expected to be another increase. 

I will probably try and tailor our fixed DD on our fixed contract to keep a £200 float with Eon Next.

elsien

No. I’m not on a fixed tariff due to being an Avro transfer.  I’ve worked out my likely costs going in last years usage, with the April price increase. I’m still going to want to build up a buffer for the likely October price hike despite the £400. So mine is staying as it is. I’d rather overpay than underpay. 

Robin9

I will adjust my Elec fix till Sept 2024  DD in October - the £66.66 will just balance out my monthly usage.

I'll increase my Gas SVT DD then and top up with the new WFA in Nov/Dec 

[Deleted User]

ProDave said:

I am.  I have just submitted my request to Octopus. (one of the better suppliers imho who are open to reasonable suggestions usually)

My argument goes, I am on a fixed tariff to next March which covers most of next winter.  The Government will pay a £400 grant into my account in 6 monthly installments starting in October.  so if I kept my payments the same my account would be £400 too much in credit at the end of the winter.

So I have suggested an immediate reduction in my monthly DD of £40 on the basis that over the next 10 monthly payments that would have accounted for the grant payment and prevent my account being £400 too much in credit.  That also coincides with the time I would be ending my fixed period so would then be reviewing the monthly payment again depending on what the new rate is then.

I will let you know what Octopus say.

Anyone else doing the same?

You can change your DD payment online or via the App. I reduced mine to a £1 for two months and Octopus didn’t bat an eyelid. I did though make sure that there was enough credit in the account to cover in full the next month’s bill.

ProDave

Yes you can change it on the Octopus website without explaining why, but I thought it courteous to send an email explaining why I wanted it reduced, rather than them risk rejecting it or changing it to something else they thought "better"

The default rate they suggest if I go to the change my payment option is £20 more than I presently pay and what I already pay is above my actual usage, so i sense they are trying to trick customers into building up a substantial credit.

Sea_Shell

One would hope that for those customers NOT on duel fuel that their electricity supplier will be happy (flexible) for their DD to be reduced (or even suspended) once the £400 credit has been applied, as their gas supplier will no doubt be looking for an increased DD to cover the new cap/winter usage!!



I wonder how many customers aren't on a duel fuel account?  Either through choice or historically.


I'm sure my parents are still with the separate "legacy" suppliers as they've never switched!!! 

Xbigman

I plan to keep my payments the same and let the £400 credit build up. No one knows how next year is going to pan out and I'd rather have something in reserve if its worse than this year.


Darren

[Deleted User]

Hi,

why reduce, just keep paying what you're paying now, then just let it build up, you would've been paying same any way before the freebie.

Means if a cold winter, you can just churn the heating up and be cosy.

QrizB

ProDave said:

I am.

Anyone else doing the same?

I'm currently only paying Octopus £30/month, so a £40 reduction isn't gonna work   but I can appreciate that it would make sense for others.

Sea_Shell

frugalmacdugal said:

Hi,

why reduce, just keep paying what you're paying now, then just let it build up, you would've been paying same any way before the freebie.

Means if a cold winter, you can just churn the heating up and be cosy.

Are you replying to me?

Er, because not everyone can treat the credit as "bunce money"!!

They may need that credit to pay the GAS bills, so may need to somehow "move" the credit from one account to another.

If their electricity supplier won't "play ball" then people still won't be able to afford their gas DD. ☹️