£400 electricity credit to be paid in instalments - confirmed

GingerTim

wrf12345 said:

but come April 2023 I expect electric rates to be down and standing charges abolished.

You are going to be very disappointed.

pochase

GingerTim said:

wrf12345 said:

but come April 2023 I expect electric rates to be down and standing charges abolished.

You are going to be very disappointed.

Not necessarily, the price might come down a few pence, but I doubt that this is what he was referring to. And if standing charges would be abolished the price will not come down. but go up.

MattMattMattUK

wrf12345 said:

Who wants to bet that the standing charge for gas will go up, so that the total standing charge on elect and gas is matched by the £400. 

Anyone with any knowledge of the system would bet against that, because of the way we know the SC is calculated. 

wrf12345 said:

It would have been much simpler just to abolish the standing charges, esp for older prepayment meters. 

No it would not have been, because the Standing Charges are there to cover specific costs.

wrf12345 said:

Basically the energy co's exhorting money from the govn straight into the pockets of executives.

"Basically", they are not.

wrf12345 said:

I realise they have previously lost lots of money but come April 2023 I expect electric rates to be down and standing charges abolished.

Rates are now expected to stay high for several years, Cornwall Insights (who have been the most on the ball so far) expect high rates into late 2024, with a slow drop over time. Standing Charges will not be abolished, to do so would be irrational, punish anyone who was not an ultra-low user and the main beneficiaries of such a change would be second home owners. 

Virgo19

Have looked at that, all clear now, thank you.

StocktonFlyer

Yes it looks like it will be a discount to the usual DD, but I am not sure this is a good idea. I'd rather it was added to the existing DD as that is the purpose to cover the additional cost, otherwise I don't think I will be paying enough and my supplier (Utility Warehouse) seem incapable of adding additional manual payments to the account, so I'll just end up with extra cash which is nice, but I really want it on my energy account.

Alnat1

It might be that different companies deal with it in different ways, it's still a wait and see until the company you are with gives information of how it is going to process the discounts.

MWT

StocktonFlyer said:

Yes it looks like it will be a discount to the usual DD, but I am not sure this is a good idea. I'd rather it was added to the existing DD as that is the purpose to cover the additional cost, otherwise I don't think I will be paying enough and my supplier (Utility Warehouse) seem incapable of adding additional manual payments to the account, so I'll just end up with extra cash which is nice, but I really want it on my energy account.

The one certainty is that however they do it, someone is going to be unhappy

Many people have been complaining that the suppliers are raising the DD and not taking the £400 into account...

If they deduct the monthly element of the £400 from the DD then it all makes sense, and that is probably the best solution for most people, especially those with dual fuel accounts.

Mrs_F_2017

Robin9 said:

@pochase  That's not how I read the extract you have quoted -  it does not mention altering of DD's

edit - I'm expecting to see an extra line on my bill -saying "Government Support  £66/67)"

From Radio 4 this morning that I how I understood it. 

I’m now variable whole bill direct debit - so if I use £170 energy today - I’m expecting to pay £103 or £104 depending on the month. 

MWT

Mrs_F_2017 said:

From Radio 4 this morning that I how I understood it. 

I’m now variable whole bill direct debit - so if I use £170 energy today - I’m expecting to pay £103 or £104 depending on the month. 

That is in line with the published update from the Government, but it is an option for the supplier, they can still choose to process it as full payment, followed by a refund if they prefer.

Robin9

Alnat1 said:

It might be that different companies deal with it in different ways, it's still a wait and see until the company you are with gives information of how it is going to process the discounts.

Likewise - I'll wait.  I can't see that Edf will take my £58 DD which is less than the £66/67 and credit my bank with £8/9, particularly if I am in debt.