Lost all confidence in my providers ability to estimate my energy usage - time to cancel DD?

CosmicYak

Hi all,

Like many others here I guess, I am having fun and games with my energy provider who, despite allowing me to build-up an excessive credit balance, seem to be forcing-up my direct-debits for no apparent reason.  They appear to want to hang on to at least three months worth of direct-debit payments before considering a refund (is that legal?).  I eventually managed to get a refund of approx 2/3 of my credit balance after grabbing their attention after having a rant on their FB page).  Now they have forced-up my DD payment and days later, want to do it again.  I use spreadsheets extensively to track my usage and forecast my payments going forward, and my estimates and my providers are worlds apart. 

Lord knows where their estimates come from but am now at the end of my tether and am seriously contemplating cancelling my DD instruction with them, despite the 6-7% rise this will put onto my tariff.  At least then my money will be in MY bank, and I will only be paying what I have actually used. 

So, I'd like to hear from anyone else who has cancelled their DD instruction with their provider, and what their subsequent experience (in terms of cashflow management) has been like.

All responses greatfully received. 

jimjames

Which supplier? Can you change to paying on bill and put the money into a savings account so you essentially manage the DD yourself. It means you keep the benefit of DD but don't have the supplier holding the balance

CosmicYak

Hi, I'm with OVO Energy.  What you are suggesting is exacty what I am contemplating.  Is this something you are doing, and if so is it working for you? 

GingerTim

If your supplier has the facility you might be better paying by variable direct debit - you retain the DD discount and pay each month for the energy you use. This comes with the proviso that summer bills will, of course, be considerably larger.

(I pay this way with electricity with EDF).

pochase

With a few exceptions most suppliers allow you to go onto variable direct debit, sometimes they are calling it different.

You will need to supply a monthly meter reading, they will do a bill, and deduct the billed amount by direct debit, leaving you on the cheaper rates for direct debit.

Drawback is that you need to budget yourself for the very expensive winter months, but you were planning to do so anyway.

In regard to the high DDs, you are aware that we had a 54% increase to the SVT in  April, and there will be another 65% increase in October? This are averages and depending on your personal energy use this might be much higher.

CosmicYak

Hi,  I'm with OVO energy.  I have a smart meter (that actually works!) so they will have all of my usage info automatically. 

I am aware of the April increase and the forecast 65% increase too and all of these have been factored into my calculated forecasts.  you have raised a very good point about budgeting for the high winter paper bills, and checking the impact of that on my cashflow, thanks! 

Keep_pedalling

GingerTim said:

If your supplier has the facility you might be better paying by variable direct debit - you retain the DD discount and pay each month for the energy you use. This comes with the proviso that summer bills will, of course, be considerably larger.

(I pay this way with electricity with EDF).

Looking at the website this does not seem to be an option with Ovo.

pochase

I have just checked and it seems Ovo might not have variable direct debit, but they are giving you 3% to 5% interest on the amount you are in credit. Personally I would happy if there debit my account with a few hundred pounds each month. No chance to get this interest anywhere else.

You also did not mention that you have reduced you energy use by 30% as written in an earlier thread. Ovo won't have a glass ball to get this information, they will calculate your direct debit from the usage figures available to them.

CosmicYak

Thanks @GingerTim - I'll check for that option with OVO Energy

brewerdave

CosmicYak said:

Hi,  I'm with OVO energy.  I have a smart meter (that actually works!) so they will have all of my usage info automatically. 

When you say "it works" -are Ovo actually using the meter readings ? Check bills for any E (=estimated) readings.

CosmicYak

brewerdave said:

CosmicYak said:

Hi,  I'm with OVO energy.  I have a smart meter (that actually works!) so they will have all of my usage info automatically. 

When you say "it works" -are Ovo actually using the meter readings ? Check bills for any E (=estimated) readings.

Hi,  yes, all smart-meter readings are feeding into my bills ok.