Annual increase of £4250.55 for gas and electric can't be right! Can it? : (

mumf

We are with Eon next. No direct debit. The problem with DD as I see it at this time,is that the calculated guesswork of what you may use has shot through the roof. But it’s just that; Guesswork. We simply send a meter reading each month,they send us the bill. Simple. But it takes a little work,which I think is why DD is popular with energy consumers.

I set a reminder on the phone ,but they send me one anyway,so it’s not that difficult.

mjdrae

Ultrasonic said:

mjdrae said:

My point is, we have been quoted ridiculous prices based on figures that we simply arent going to hit...  how can that be right??

From the perspective of an energy company, how do they know this? Suppose everyone tells them they'll be using much less energy to get their DD amounts reduced but then ends up with a debt they'll struggle to clear...

Maybe i wasnt clear.

So, the last 12months usage has been considerably lower than the previous 2 years before. They have ignored the 12months to date and have taken the previous 2 years readings. Surely that isn't and cannot be right. We are more likely to be inoine with the latest readings rather than 2 previous years...  like i said, circumstances are different and unless people are going to go on furlough again and schools close for 8 months and my daughter returns from uni to live at home then they should use recent 12 months usage.

[Deleted User]

mumf said:

We are with Eon next. No direct debit. The problem with DD as I see it at this time,is that the calculated guesswork of what you may use has shot through the roof. But it’s just that; Guesswork. We simply send a meter reading each month,they send us the bill. Simple. But it takes a little work,which I think is why DD is popular with energy consumers.

I set a reminder on the phone ,but they send me one anyway,so it’s not that difficult.

If you are in the habit of paying the bill each month after sending the meter reading, Eon Next will allow you to pay the exact bill via the DD process.  So July's reading for me was taken (actually lifted from the smart meters) on the 1st,  bill raised within a day and advised of the DD to be taken (17 days later),  DD taken on 18th July to zeroise the account (same as the cost of June's usage).  So there is no guesswork paying by variable DD.  Are you paying any premium by using your alternative method of payment?

Ultrasonic

mjdrae said:

Ultrasonic said:

mjdrae said:

My point is, we have been quoted ridiculous prices based on figures that we simply arent going to hit...  how can that be right??

From the perspective of an energy company, how do they know this? Suppose everyone tells them they'll be using much less energy to get their DD amounts reduced but then ends up with a debt they'll struggle to clear...

Maybe i wasnt clear.

So, the last 12months usage has been considerably lower than the previous 2 years before. They have ignored the 12months to date and have taken the previous 2 years readings. Surely that isn't and cannot be right. We are more likely to be inoine with the latest readings rather than 2 previous years...  like i said, circumstances are different and unless people are going to go on furlough again and schools close for 8 months and my daughter returns from uni to live at home then they should use recent 12 months usage.

Oh right, yes that is different. 

Sea_Shell

mjdrae said:

Ultrasonic said:

mjdrae said:

My point is, we have been quoted ridiculous prices based on figures that we simply arent going to hit...  how can that be right??

From the perspective of an energy company, how do they know this? Suppose everyone tells them they'll be using much less energy to get their DD amounts reduced but then ends up with a debt they'll struggle to clear...

Maybe i wasnt clear.

So, the last 12months usage has been considerably lower than the previous 2 years before. They have ignored the 12months to date and have taken the previous 2 years readings. Surely that isn't and cannot be right. We are more likely to be inoine with the latest readings rather than 2 previous years...  like i said, circumstances are different and unless people are going to go on furlough again and schools close for 8 months and my daughter returns from uni to live at home then they should use recent 12 months usage.

Devil's advocate....Maybe there is something in their "calculation handbook" that uses the highest annual usage over an historic period (or an average of these) and that's the figure that gets spat out.

Who's to know that last year wasn't just an anomaly!? 

I thought this was the sort of thing Ofgem were supposed to be cracking down on....but is that only if the supplier cannot, in some way, justify the figures used?

Mstty

So going back to your original post I would use the following Key Phrases when calling up

1) I know my energy usage for this year and it will be xyz due to the following reasons

E.g. reduction is usage due to less people at home on furlough and one person off to uni combined with the £400 due from October...

If you hit a brick wall ask for a complaint to be raised as you believe they they are breaking Ofgems crackdown on unfair direct debits.

wild666

I left OFTM in December 2018 because they wanted to do a winter/summer payment plan that they claimed would be £1,140 over 12 months but my yearly usage was just over £450. They were basing the usage on the average UK usage figures at the time when my usage was just 2000 kWh of electric and gas was around 3000 kWh 
I would suggest that people keep a record of their actual usage over a 12 month period then if any supplier tries to increase the DD by more than the next predicted percentage increase, that's assuming that the person is on the SVR, then you can question their increase. 

When I was with BG on their SVR I questioned their increases twice as I was building up a credit balance in winter when normally any credit would be reducing. both times they said my usage was almost 30% more than what I actually used so I put in a complaint and got it reduced, this was between April 2011 and June 2015.

pochase

Mstty said:

So going back to your original post I would use the following Key Phrases when calling up

1) I know my energy usage for this year and it will be xyz due to the following reasons

E.g. reduction is usage due to less people at home on furlough and one person off to uni combined with the £400 due from October...

If you hit a brick wall ask for a complaint to be raised as you believe they they are breaking Ofgems crackdown on unfair direct debits.

Outfox is one of the companies criticised by Ofgem for direct debits

The second group, with minor weaknesses, consisted of Bulb, E.ON, Octopus Energy, Outfox the Market, Ovo, Shell and Utility Warehouse. For this group of suppliers, we identified some weaknesses or gaps in their processes that could lead to poor consumer outcomes. Examples include lack of documented policies or guidance for staff, potentially not taking account of all relevant factors when setting customer direct debits, or risks that some customers’ direct debits are not assessed when appropriate. We have started compliance engagement with these suppliers to secure improvements.

  

sammyjammy

mumf said:

We are with Eon next. No direct debit. The problem with DD as I see it at this time,is that the calculated guesswork of what you may use has shot through the roof. But it’s just that; Guesswork. We simply send a meter reading each month,they send us the bill. Simple. But it takes a little work,which I think is why DD is popular with energy consumers.

I set a reminder on the phone ,but they send me one anyway,so it’s not that difficult.

The trouble with this approach is you lose the DD discount, I changed to variable direct debit on receipt of bill, they only bill every three months but I just put aside a monthly amount.

mjdrae

Sea_Shell said:

mjdrae said:

Ultrasonic said:

mjdrae said:

My point is, we have been quoted ridiculous prices based on figures that we simply arent going to hit...  how can that be right??

From the perspective of an energy company, how do they know this? Suppose everyone tells them they'll be using much less energy to get their DD amounts reduced but then ends up with a debt they'll struggle to clear...

Maybe i wasnt clear.

So, the last 12months usage has been considerably lower than the previous 2 years before. They have ignored the 12months to date and have taken the previous 2 years readings. Surely that isn't and cannot be right. We are more likely to be inoine with the latest readings rather than 2 previous years...  like i said, circumstances are different and unless people are going to go on furlough again and schools close for 8 months and my daughter returns from uni to live at home then they should use recent 12 months usage.

Devil's advocate....Maybe there is something in their "calculation handbook" that uses the highest annual usage over an historic period (or an average of these) and that's the figure that gets spat out.

Who's to know that last year wasn't just an anomaly!? 

I thought this was the sort of thing Ofgem were supposed to be cracking down on....but is that only if the supplier cannot, in some way, justify the figures used?

For the very reasons i have explained....  its actually the previous 2 years that were anomalies with circumstances such as Furlough and Schools shut....  its like gong into a supermarket and been asked to pay double what you have bought because you previously bought more food....  :-D