Is there any way to use a smart meter to just pay for what I use each month?

Wkmg

I'm sick of the energy company billing me a hypothetical average monthly usage that is invariably wrong. Why can't I just pay by direct debit the exact amount of energy that I have used each month? I don't have any budgeting problem and see no personal benefit from spreading the cost. I can comfortably pay any winter bill they send even with prices going up. Do any suppliers let you pay month by month direct debit based on your smart meter?

Effician

Whole amount variable dd is what you're describing, yes some  suppliers do while  OVO i know doesn't , who are you with ?

Mstty

You don't even need a smart meter for this you just need eyes, a pen and paper.

sienew

Wkmg said:

I'm sick of the energy company billing me a hypothetical average monthly usage that is invariably wrong. Why can't I just pay by direct debit the exact amount of energy that I have used each month? I don't have any budgeting problem and see no personal benefit from spreading the cost. I can comfortably pay any winter bill they send even with prices going up. Do any suppliers let you pay month by month direct debit based on your smart meter?

Yes. Ask to pay by variable direct debit. Almost all suppliers offer this.

Wkmg

I’m with SSE which are part of OVO. Maybe that’s why I can’t. 

[Deleted User]

Wkmg said:

I'm sick of the energy company billing me a hypothetical average monthly usage that is invariably wrong. Why can't I just pay by direct debit the exact amount of energy that I have used each month? I don't have any budgeting problem and see no personal benefit from spreading the cost. I can comfortably pay any winter bill they send even with prices going up. Do any suppliers let you pay month by month direct debit based on your smart meter?

Your supplier should not be using hypothetical readings to bill you when you have a smart meter. The statement should your credit/debit balance; any DD payments added during the month; the ACTUAL smart meter billing charge for energy used, and the credit/balance going forward.

An annual estimate calculation is used to set your monthly DD payment? This takes into account your past historical usage with some adjustment for unusual weather in the past. The supplier will also factor in the present and future tariffs (if not on a fixed tariff).

Yes, you might be billed £150 this month when your total consumption was only £75. However, in January when your usage bill might be £250, if your supplier has got it right, you will still have a monthly DD of £150.

Variable DDs are great if you are good at putting enough money to one side, but they are bills that have to be paid in full. With most suppliers, you will also pay slightly more for variable DD billing (higher admin costs).

t0rt0ise

I don't think it's correct that most suppliers charge more for variable direct debit. In fact most charge the same as for set monthly DD.

[Deleted User]

t0rt0ise said:

I don't think it's correct that most suppliers charge more for variable direct debit. In fact most charge the same as for set monthly DD.

You are, of course, correct. It must be the heat! The discount relates to paying by DD as opposed to paying by some other means - cash; cheque etc

Wkmg

Dolor said:

Wkmg said:

I'm sick of the energy company billing me a hypothetical average monthly usage that is invariably wrong. Why can't I just pay by direct debit the exact amount of energy that I have used each month? I don't have any budgeting problem and see no personal benefit from spreading the cost. I can comfortably pay any winter bill they send even with prices going up. Do any suppliers let you pay month by month direct debit based on your smart meter?

Your supplier should not be using hypothetical readings to bill you when you have a smart meter. The statement should your credit/debit balance; any DD payments added during the month; the ACTUAL smart meter billing charge for energy used, and the credit/balance going forward.

An annual estimate calculation is used to set your monthly DD payment? This takes into account your past historical usage with some adjustment for unusual weather in the past. The supplier will also factor in the present and future tariffs (if not on a fixed tariff).

Yes, you might be billed £150 this month when your total consumption was only £75. However, in January when your usage bill might be £250, if your supplier has got it right, you will still have a monthly DD of £150.

Variable DDs are great if you are good at putting enough money to one side, but they are bills that have to be paid in full. With most suppliers, you will also pay slightly more for variable DD billing (higher admin costs).

Paying my energy bill is no problem. My issue is with this:

"Yes, you might be billed £150 this month when your total consumption was only £75. However, in January when your usage bill might be £250, if your supplier has got it right, you will still have a monthly DD of £150."

They never get it right! They currently owe me £750 on my gas bill and have just decided to increase my direct debit for gas. They are insane. Even if my actual monthly usage in the winter was £1000 I would be happy to just pay it. I don't need the energy company to manage my cash flow for me. I am an adult.

I've done some more digging with SSE about a variable direct debit and it is possible but they make it difficult. You have to ring them to arrange it but in my experience they rarely pick up the phone. I will persevere! 

pochase

But all customers are moved from SSE to OVO, and OVO just does not allow variable direct debit.

So you might be able to change for a short time. but OVO does not honour payment forms allowed by SSE. There were threads complaining about this.

The other way is to pay by cheque/cash/ standing order. You will lose the direct debit discount and thus pay 7% more.