£400 Energy payment

Northern_Wanderer

SJMALBA said:

Perhaps of greater importance if it was to be a lump sum rather than 6 monthly payments, but what about those who pay by variable DD, and as such, would not ordinarily have any credit balance - will they be able to withdraw the credit?

Doubtful many would have any credit left on variable after paying for the usage. If it's a lump sum I understand your point as I'd be wanting to put it towards my gas bill. Certainly don't want my credit lingering with an energy company.

SJMALBA

GingerTim said:

SJMALBA said:

Perhaps of greater importance if it was to be a lump sum rather than 6 monthly payments, but what about those who pay by variable DD, and as such, would not ordinarily have any credit balance - will they be able to withdraw the credit?

Who knows? If I were a betting man I'd suggest as it's not 'real' money but a credit, then it won't be withdrawable.

For instance, my variable direct debit for electricity is about £32 per month, so I just I expect the credits to sit on my account until they're exhausted.

I guess that a key difference between a credit balance for someone paying fixed DD (which can, I think be withdrawn?), and one built as a result of this 'free money', is that the former is actually built up from the consumer's money, so they would simply be getting their own money back?

GingerTim

SJMALBA said:

GingerTim said:

SJMALBA said:

Perhaps of greater importance if it was to be a lump sum rather than 6 monthly payments, but what about those who pay by variable DD, and as such, would not ordinarily have any credit balance - will they be able to withdraw the credit?

Who knows? If I were a betting man I'd suggest as it's not 'real' money but a credit, then it won't be withdrawable.

For instance, my variable direct debit for electricity is about £32 per month, so I just I expect the credits to sit on my account until they're exhausted.

I guess that a key difference between a credit balance for someone paying fixed DD (which can, I think be withdrawn?), and one built as a result of this 'free money', is that the former is actually built up from the consumer's money, so they would simply be getting their own money back?

Yes, that would be my guess - if it's a credit built up by cash payments then that can clearly be returned, but I'm not sure they will allow the withdrawal of the £400 credit instalments as it's specifically to help with energy costs. I agree with @Northern_Wanderer, though, not many people are going to have credit balances on variable direct debits at this winter's prices.

SJMALBA

Northern_Wanderer said:

SJMALBA said:

Perhaps of greater importance if it was to be a lump sum rather than 6 monthly payments, but what about those who pay by variable DD, and as such, would not ordinarily have any credit balance - will they be able to withdraw the credit?

Doubtful many would have any credit left on variable after paying for the usage. If it's a lump sum I understand your point as I'd be wanting to put it towards my gas bill. Certainly don't want my credit lingering with an energy company.

Indeed.

Also, if you're able to put it aside in a monthly interest savings account or FRB, £400 could earn, what, 50-90p a month!

pochase

I think there will be very few customers who use less than the £66.66 people assume we will get as a credit for 6 months.

Most likely it will be those who have gas and electricity with different providers as mentioned by @Deleted_User. 

A bigger problem might be consumers on prepaid. There was somewhere the information they should get it as vouchers for their electricity account. So maybe  they won't even be able to withdraw the money. They might end up with having a nice credit on their prepaid meters, but no credit on the gas meter, and no money to pay for it.

MWT

pochase said:

So maybe  they won't even be able to withdraw the money. They might end up with having a nice credit on their prepaid meters, but no credit on the gas meter, and no money to pay for it.

It will be annoying if their gas is for the heating for sure, but they will still be able to use the money they would have put onto the electricity meter to help with the gas, but agreed, it is not perfect.

pochase

There is a lot that is not perfect about the £400 looking at what we currently know about it.

On the other hand not getting something is even worse.

Northern_Wanderer

pochase said:

There is a lot that is not perfect about the £400 looking at what we currently know about it.

On the other hand not getting something is even worse.

Indeed, but at least it is not a "loan not loan" forced on people without their permission.

Sirius_Minor

pochase said:

I think there will be very few customers who use less than the £66.66 people assume we will get as a credit for 6 months.

Most likely it will be those who have gas and electricity with different providers as mentioned by @Deleted_User. 

A bigger problem might be consumers on prepaid. There was somewhere the information they should get it as vouchers for their electricity account. So maybe  they won't even be able to withdraw the money. They might end up with having a nice credit on their prepaid meters, but no credit on the gas meter, and no money to pay for it.

I'm on prepay & the vouchers will come in very handy in time for Winter. 6x£66 has been mentioned. I hope it will be 5x£66 & 1x£70. The money saved can go on food or into savings. Since Economy Energy went bust, I've been logging usage since new supplier took over & been logging it ever since. Seen usage go from £35pm to just over £70pm (electric).

Got a few chuckles from Bulb last July when they sent an e-mail "Dear xxxx, we noticed you haven't topped up your gas meter in 4 months". Topped up 31/3/21 had to top up again 15/9/21 (1 bedroom flat). Have been on prepay for over 20 years & know that it is slighter dearer but my wife & I are fine with that.