Variable Direct Debit

PennineAcute

Since moving into my new home in May, I signed upto a fixed tariff in June.  I posted on here before that I have been trying to get my gas DD down to something which my speadsheet advises - but still stuck on the £90 BG want.

I know I am in a position that my previous 5 years' daily readings may be useless, as I have now moved, but my previous home was a purpose built ground floor flat, which was cold in winter.  I am now in a one bed bungalow - so I am going with similar usage.  I did have a shower fed from the combi boiler in my flat and I am now on an electric shower, so that is around a daily 4 kWh saving on my gas.  I am currently averaging 1 kWh of gas a day.

If BG allow me to move onto a variable DD, will my rates change.  I am currently paying elec 36.762 SC and 38.435 UP, and gas 24.48 SC and 11.26 UP.  I am currently (from my spreadhseet) £82 in credit with my gas, and £60 in arrears with my elec.  I have DDs for both going out on the 16th of this month.

If my rates do not change with BG,  could I then just pay the monthly bill and top up with what my spreadsheet recommends to be the "right" direct debit, as I am struggling paying £90 a month on my gas, on top of my £70 for the electricity - when my spreadsheet (including current credit) is recommending £68 for elec and £50 for gas.

If my rates will change (for the worse) then this plan is a no goer.

[Deleted User]

Hi,

your rates will stay the same, though remember your bills will be higher over the winter when using heating.

PennineAcute

If my calculations are correct, my big Dec,Jan and Feb usage and cost is less than my £90 DD I am currently paying.  So I would not be any worse off than I currently am. 

BUFF

PennineAcute said:

 I did have a shower fed from the combi boiler in my flat and I am now on an electric shower, so that is around a daily 4 kWh saving on my gas.  I am currently averaging 1 kWh of gas a day.

If BG allow me to move onto a variable DD, will my rates change.  I am currently paying elec 36.762 SC and 38.435 UP, and gas 24.48 SC and 11.26 UP.  I am currently (from my spreadhseet) £82 in credit with my gas, and £60 in arrears with my elec.  I have DDs for both going out on the 16th of this month.

If my rates do not change with BG,  could I then just pay the monthly bill and top up with what my spreadsheet recommends to be the "right" direct debit, as I am struggling paying £90 a month on my gas, on top of my £70 for the electricity - when my spreadsheet (including current credit) is recommending £68 for elec and £50 for gas.

If my rates will change (for the worse) then this plan is a no goer.

It's generally usual that a shower via a combi is cheaper than via an electric shower (your electricity is more than 3x cost of your gas/kWh albeit an electric shower should be 100% efficent v ~80% for a combi).

Your unit rates shouldn't change because of a change from fixed dd to vdd.

pochase

A variable direct debit means you have to give monthly meter readings, will be billed for the usage, and the billed amount will be debited.

There is no spread sheet involved or what you think you should pay. You pay every month for what you used the previous month.

PennineAcute

pochase said:

A variable direct debit means you have to give monthly meter readings, will be billed for the usage, and the billed amount will be debited.

There is no spread sheet involved or what you think you should pay. You pay every month for what you used the previous month.

I agree.  But if my calculated usage for each month (until July next year) is to be less than what they have calculated my monthly DD to be, then surely I would be better off.

BUFF

If you actually meet your calculated usage, yes.
BG should have access to industry meter data that shows the historic use for that building. Bungalows typically don't do well for heating use as they have a high roof area to room space ratio.
Even with Fixed DD it should eventually all even out once they have a track record for your usage but if you are aware, can afford & are prepared for the peak payments in Dec/Jan/Feb if you go VDD there is nothing afaik to stop you choosing that.

PennineAcute

Yes, I would prefer to stay on fixed DD.

With me thinking of topping up in the months leading up to  winter, then, if my calculations are out, then it may not be too bad.