My DD to EDF at almost 300 pounds per month - How will the 400 cashback affect my payments?

diystarter7

ATM we are now paying about 300 per month. The 400 of our taxpayer's money being returned to us/etc.  Will EDF automatically reduce my monthly payments?

I want to keep up the payments as slightly in debt atm because of the miscalculations by the previous suppliers etc.

Will I get an option?

QrizB

I don't think anybody knows yet.

diystarter7

ok, thanks.

GingerTim

The information page on gov.uk implies we will receive the grant as 6 x £66.66 credits to our monthly bills rather than a lump sum of £400. But as QrizB suggests, still to be fleshed out in more detail.

Ultrasonic

My non-insider guess would be that energy providers will just review DD payments in the same way they are currently, so no immediate change but it will be factored in eventually. 

@diystarter7 you may be on a fixed rate tariff but if not note that the price cap change in October will affect future DD amounts too.

Sea_Shell

Judging by comments from some people who are struggling, currently, to get their supplier to reduce their DD payment, you may find that it will not be done "automatically", and a DD reduction may have to be requested.  Which would suit you.

All we can hope is that suppliers are open to allowing people to reduce their DD to take the credit into account, should they wish too, especially if they are not on dual fuel.

Also, I'd be surprised if there was a "industry standard" way of handling the credit, across all suppliers, so we'll have to wait and find out how each of them choose to handle it for their customers.  

Personally, I'd rather keep my DD the same, and request the whole £400 rebated as a one off credit.  Individual circumstances will vary.

diystarter7

@Ultrasonic
Thanks, I'm on the varying one and exactly my reason to stay as it is. We are paying about 30 quid more than we should trying to clear the debt we were put in by previous supplier and change over as one payment was not collected so paying now.
Thanks

Ultrasonic

Sea_Shell said:

Personally, I'd rather keep my DD the same, and request the whole £400 rebated as a one off credit.  Individual circumstances will vary.

I'd like that too but I'm guessing that won't easily happen. It will also make a difference whether we'll be getting a single payment of £400 or if it will be credited in instalments, which isn't totally clear right now.

Sea_Shell

Ultrasonic said:

Sea_Shell said:

Personally, I'd rather keep my DD the same, and request the whole £400 rebated as a one off credit.  Individual circumstances will vary.

I'd like that too but I'm guessing that won't easily happen. It will also make a difference whether we'll be getting a single payment of £400 or if it will be credited in instalments, which isn't totally clear right now.

As Eon quite happily refunded an excess credit to me recently, I'm hoping that as long as my DD accurately reflects my anticipated usage, getting the "excess" £400 paid out shouldn't be a problem.   Even if it takes a few months to be added.

Ultrasonic

Sea_Shell said:

Ultrasonic said:

Sea_Shell said:

Personally, I'd rather keep my DD the same, and request the whole £400 rebated as a one off credit.  Individual circumstances will vary.

I'd like that too but I'm guessing that won't easily happen. It will also make a difference whether we'll be getting a single payment of £400 or if it will be credited in instalments, which isn't totally clear right now.

As Eon quite happily refunded an excess credit to me recently, I'm hoping that as long as my DD accurately reflects my anticipated usage, getting the "excess" £400 paid out shouldn't be a problem.   Even if it takes a few months to be added.

I may well be being overly pessimistic but time will tell. My money is on us seeing a flood of posts here about energy companies not easily agreeing to this...

Sea_Shell

Ultrasonic said:

Sea_Shell said:

Ultrasonic said:

Sea_Shell said:

Personally, I'd rather keep my DD the same, and request the whole £400 rebated as a one off credit.  Individual circumstances will vary.

I'd like that too but I'm guessing that won't easily happen. It will also make a difference whether we'll be getting a single payment of £400 or if it will be credited in instalments, which isn't totally clear right now.

As Eon quite happily refunded an excess credit to me recently, I'm hoping that as long as my DD accurately reflects my anticipated usage, getting the "excess" £400 paid out shouldn't be a problem.   Even if it takes a few months to be added.

I may well be being overly pessimistic but time will tell. My money is on us seeing a flood of posts here about energy companies not easily agreeing to this...

As you say, time will tell, but what's the alternative?

Have the credit sitting there "forever" until it's inflated away by ever higher prices, or allow customers to radically reduce their DD, especially low users.

We could all just wait for our suppliers to do an account review... eventually 😉