Can firms put up DD when I am well in credit?

annkirk0975

I am well in credit (over £100) & I have had a conversation with my company frequently over the last year saying do not put it up but I will pay every month any extra. They have done it again this month & when I said I was not happy & consider moving they basically said "off you go then"

I have not intensions of being in the red but want to be sure what I pay every month plus I don't want the money in their bank when if in mine, it would get interest. 

Can they do this? Is this legal?

Thanks

[Deleted User]

Hi,

another option is to go on variable DD, where you pay monthly for what you use, be prepared for higher bills in winter when using heating.

GingerTim

Depending on your tariff, that £100 will be swallowed up very easily - and then some - once we get into winter

MWT

annkirk0975 said:

Can they do this? Is this legal?

You don't say who your supplier is, but if you want to just pay for what you have used each month you should ask to be put onto a variable DD, not your current payment plan which aims to set the DD at 1/12th of your annual predicted use.

"Keep the DD the same and let me pay the balance" isn't generally an option.

So yes, what they are doing is legal, but you can change to something closer to what you want with most suppliers if you opt for a variable DD.

Just keep in mind that it means larger bills in winter, so be prepared for that.

pochase

What is your annual usage?

£100 in credit in August is no preparation for winter at all. They are calculating your annual usage and divide it by 12. Of course in summer you use less, but much more in winter.

You paying additional amounts is additional administration for them. You are getting a discount for paying by direct debit of 7%, but if you cause them additional administration they will not be happy.

You can chose to pay by variable direct debit with most suppliers, you will only pay the bill for what you used the last month, "cheap" in summer and very expensive in winter, you need to budget for this. 

Also you are aware that your bills will increase by 82% in October, and might be more than double what you use today in Janaury?

victor2

annkirk0975 said:

I am well in credit (over £100) & I have had a conversation with my company frequently over the last year saying do not put it up but I will pay every month any extra. They have done it again this month & when I said I was not happy & consider moving they basically said "off you go then"

I have not intensions of being in the red but want to be sure what I pay every month plus I don't want the money in their bank when if in mine, it would get interest. 

Can they do this? Is this legal?

Thanks

A lot of suppliers (or their computers!) look at the DD amount regularly and push through an update unless you object to it. Depending on your tariff and usage £100 credit is probably nothing at this time of year. See if you can find your annual usage in kWh and cost that on your tariff. Divide the total cost by 12 and that is a realistic monthly payment. If you are on a variable tariff, or a fix about to end, prices are going to increase dramatically in October.

As others have said, you can ask to go onto a variable DD charge, where you only pay for what you use, which shouldn't be much in the summer...

annkirk0975

thanks everyone for comments. 

I have always paid any extra that is needed once I see the bill so that we are not in the red for long. 

I am more than happy to pay what ever it is but just dont want money in their account when it could be in mine. 

I realise that it is going to be more later this year but we have made arrangement for that. 

So will ask for a variable DD instead.

Thanks again