If I switch to fixed tariff do I have to pay the stated direct debit amount or can I change it

Tracytrace

If I switch now to a fixed tariff with eon can I change the direct debit amount once I’ve switched? It’s stating £146 a month but can I lower it 

victor2

Tracytrace said:

If I switch now to a fixed tariff with eon can I change the direct debit amount once I’ve switched? It’s stating £146 a month but can I lower it 

With Eon (Eon Next now), you can reduce your DD amount online by up to 10% below what they predict it should be. Any more than that you would have to email or phone them. Haven't tried that but have done the online bit. Not sure what they'll do with the government credits coming from October - maybe they'll be more flexible with the online percentage.

GingerTim

But your direct debit amount will depend, of course, on how much energy you use multiplied by the unit rates. Only paying £146 at the prices from October could be ambitious depending on the size of your property, number of people in it etc.

jbuchanangb

I recently switched from E.ON Next Flex to E.ON Next Online v15. My DD had been £182pm. E.ON proposed £259. I used my own figures of actual usage for last 12 months, calculated costs for next 12 months at Next Online v15 rates, and decided that £230pm would cover it. E.ON took one DD payment at the old figure, then I logged on and changed the DD to £230. Account is now £209 in credit and will soon be £439 in credit. But winter is coming!

Mobtr

Tracytrace said:

If I switch now to a fixed tariff with eon can I change the direct debit amount once I’ve switched? It’s stating £146 a month but can I lower it 

I’m sure you can but bear in mind if you lower it too much you may end up in debt & have to increase it by more later 

cruisetheworld

I am with Octopus Energy and there is no benefit or discount for paying by Direct Debit so I cancelled my DD and now pay 6 monthly.  I opened a saving account with CHASE Bank and deposit what was my DD into it every month making 1.5% interest and when I pay I get 1% Cashback paying with their Debit Card.

Sea_Shell

Tracytrace said:

If I switch now to a fixed tariff with eon can I change the direct debit amount once I’ve switched? It’s stating £146 a month but can I lower it 

Are they basing that figure on accurate annual usage figures (in kWhs)?

If so, it would be sensible to leave it at the suggested level rather than reduce it.

However, I'd ask WHY do you want to reduce it?

Can you not afford £146 a month, or would you just rather not overpay now, and save the money, and have to increase it back up (to even more) in the future.

[Deleted User]

When I was a child - decades ago - it was the norm for my Mum to pay into a Christmas Club each year. The club had none of the credit protection of an energy contract but she, and many others, decided it was a good way to save for Christmas. I just wonder when the first energy statement arrives in the new Year, how many people on variable DDs will struggle to pay their bills because the money has been spent on other things. DD payments and credit balances are not perfect but they do offer some risk-free cashflow certainty.

littleteapot

[Deleted User] said:

When I was a child - decades ago - it was the norm for my Mum to pay into a Christmas Club each year. The club had none of the credit protection of an energy contract but she, and many others, decided it was a good way to save for Christmas. I just wonder when the first energy statement arrives in the new Year, how many people on variable DDs will struggle to pay their bills because the money has been spent on other things. DD payments and credit balances are not perfect but they do offer some risk-free cashflow certainty.

That's an excellent analogy, I like it. I remember my mother always used to do that for my Christmas presents. 

If checked properly the fixed DD is an excellent, risk-free  way to budget for domestic energy.

The only time it has ever caused issues was when the dodgey little energy middle-men were upping DDs to line their own pockets before their ponzi schemes went bust. Although its not ideal, nobody was at risk of losing anything directly as the government guarantees to refund the deposit balance.

Mstty

Anyone that overspends this Christmas with all the media coverage on the impending price cap can only have themselves to blame. 

Alnat1

Unfortunately there's a section of society who get all their media coverage through social media and they've decided it's a great idea not to pay at all.