Warning about Shell Energy direct debit raise

Kostandia

Hello, I was originally with Shell Energy via a Moneysaving switch two years ago. And like everyone, around November last year, Shell put me on their flexible tariff for the energy crisis. Since then, they tried to increase my direct debit from £60 a month to £110. So I logged in and manually changed it myself back to £67 a month. Then again this week, they've done the same, told me they are going to increase it to £101 a month because "your current direct debit will not be enough for winter usage". They even put a 'sad emoji face' by the message - what a nerve!  BUT....I am currently £91 IN CREDIT!! (I've been doing maximum energy saving all these summer months to get into credit thanks to Martin Lewis Team).

So, to summarise, I manually chose to pay £67 a month, they've tried to increase it to £101 now in JULY, well before the "winter" has even started, so I've manually changed it back down again because I've managed to build up that credit of £91, and aim to keep trying to increase my in-credit until winter starts. So my warning and disgust is that it is only end of July, winter doesn't really start until mid/end October/November, so they are trying to increase my direct debit now to build up higher credit for the winter usage. But that does not make sense to me - are they trying to get our money in their bank accounts earlier than winter?!?! They are trying to sit on our money, presumably getting interest on it while it's in their bank accounts. Maybe I'm wrong, but I'd rather my money sits in my bank account, and when winter starts (i.e. my heating goes on), I'll start monitoring my meter readings and keep a close eye on what I need to pay each month to keep it level. My main point is that I'm disgusted that they are trying to get my money sitting in their bank account earlier than it needs to be.

Mstty

Shell can only really go on your last 12 months energy usage. 

If you are going through an energy reduction exercise it won't really show on their DD for12 months.

The option is, with your credit, to move to variable whole bill monthly DD if this is what you wish to do and put your £67 in an interest bearing account ready for when you need it.

Out of interest what is your expected energy usage in kWh over the next 12 months?

Pdman

Move to a Variable Monthly DD then all the credit stays in your account. You only pay for the energy you use but be ready for large bills come the winter.

Coffeekup

A energy saving exercise is great, however doing it in the summer months is a hard task as the lights are rarely on, people tend to eat more chilled foods so no use for the oven or hobs, cooler/colder showers which uses less energy also people tend to be outside more i.e. garden, on walks or visiting. So I guess what you have been saving is minimal £15-20 on your £67 a month payment. Presuming you have electric and gas c/h, I'd estimate your usage for electricity to be around 90 units and gas 100 kWh's a month.

Cutting the wheat from the chaff and really save on your energy usage, try cutting back in late September into October by keeping the heating off till late November or even December (unless we have a real bad cold snap). Heating the home is what makes the kWh usage shoot up, unless your bitcoin mining. So the bulk of your yearly bill comes from the 3 or so months over winter period.

The price cap will go up again October 1st and by the sounds of it you're on the SVR anyway, so you could pay the £100 a month from now on through the winter months or pay £67 now for a few months and it'll go up to £130+ come November/December so paying a bit more now may take the sting out of a heavier payment later. 
Alternatively go on the variable monthly DD and pay each month for what you use.

At the end of the day that £90 you have in credit can easily be eaten up within a month come December if your not careful.

MWT

Coffeekup said:

At the end of the day that £90 you have in credit can easily be eaten up within a month come December if your not careful.

... and if it is after this months payment and before this months bill, it wouldn't even be £90 in credit really...

Hopefully not in this case, but people do have a habit of looking at the high point in the month, not the low point...