Help with monthly payment amount and fixing please!

katharinespencer

I'm with EoN on Next Flex tariff at present. We were paying £136 per month until we gave a meter reading at the end of March and they told us we needed to increase monthly payments to £341 to take in to account the increase in prices and the debit the account was in (winter months to we had used more, this would ordinarily even out over Summer). 

Based on MSE advice I am looking to fix. The quote they have gave me for the Next Online v14 tariff is £380 per month. However when going to confirm it they are now asking for £440 per month due to the debit amount. 

Shouldn't our limited usage over the Summer Months even out the debit? Or are price increases at such a level that would have to overpay to that level to decrease it even with reduced usage over summer months?

Going from £136 to nearly £440 per month is going to cripple us but conscious that based on current figures if we don't fix we will see it going up to nearly £500 per month. 

Does the amount we are paying now sound right? 

Our typical annual usage is 4051kwH for electric and 26208 kwH for gas. We live in a 4 bed property but only 3 of us.

Please help!

Mstty

Your electricity usage is reasonable but gas usage is huge. So best you look at ways of saving gas usage (heating and hot water)

How much is the debit on your account.and the standing charges and kWh price for what you are on now and the fix.

QrizB

katharinespencer said:

Our typical annual usage is 4051kwH for electric and 26208 kwH for gas. We live in a 4 bed property but only 3 of us.

Ignoring any arrears on your account, on the current variable tariff that would cost around £3350/yr, £280/month.

On the previous variable tariff it would be more like £2100/yr, £175/month.

k...they told us we needed to increase monthly payments to £341 to take in to account the increase in prices and the debit the account was in

Making the very simple approximation that you were previously underpaying by £40/month, your payments should currently be around £320/month. £341/month is in the right ballpark.

Based on MSE advice I am looking to fix. The quote they have gave me for the Next Online v14 tariff is £380 per month. However when going to confirm it they are now asking for £440 per month due to the debit amount.

MSE's advice isn't necessarily to fix, although I see Next Online V14 does currently appear on MSE's list of suggested tariffs. MSE reckon it's 30% above the current variable rate so £280/mo becomes £365/mo, plus £40/mo for arrears would give £405/mo.

Those numbers you've been quoted by E.ON Next sound entirely credible.

Please help!

Do you have the cash on hand to clear your arrears with a lump sum payment? That would make the future bills seem more reasonable.

Also, as Mstty says your energy use is very high for three people, even in a 4-bed house. Is it relatively modern and well-insulated, or is it what estate agents describe as a "character property"?

katharinespencer

Thank you for responding. Yes...need to reduce gas usage drastically. We'd adopted the approach of central heating on low continually rather than on and off high. Hasn't paid off.

We are in debit by £515 at the moment.

katharinespencer

 I'm hopefully attaching here a screenshot of current tariffs and charges...

katharinespencer

Here is what the fix tariff and charges are:

katharinespencer

The above fix screenshot is obviously without their suggestion of increased payment due to debit.

katharinespencer

Do you have the cash on hand to clear your arrears with a lump sum payment? That would make the future bills seem more reasonable.

Also, as Mstty says your energy use is very high for three people, even in a 4-bed house. Is it relatively modern and well-insulated, or is it what estate agents describe as a "character property"?

Definitely a character property, it's a bungalow that has had a loft conversion which has left little room for insulation. It is a suspended floor with a void underneath circulating cold air. We've replastered, plied all the floors, had new windows, new doors etc but it's still cold.

If we repaid the debit then would we likely be looking at around the £380 per month then?

QrizB

katharinespencer said:

Do you have the cash on hand to clear your arrears with a lump sum payment? That would make the future bills seem more reasonable.

Also, as Mstty says your energy use is very high for three people, even in a 4-bed house. Is it relatively modern and well-insulated, or is it what estate agents describe as a "character property"?

Definitely a character property, it's a bungalow that has had a loft conversion which has left little room for insulation. It is a suspended floor with a void underneath circulating cold air. We've replastered, plied all the floors, had new windows, new doors etc but it's still cold.
If we repaid the debit then would we likely be looking at around the £380 per month then?

Yes, if you clear the arrears but don't manage to reduce your consumption you're still looking at something like £380/month.