Possible Direct debit over the winter

where_are_we

Last year our Direct Debit dual fuel bill was about £100 / month. This year we started to run up a deficit so I personally changed it to £160 in May. We are with Octopus having previously been with Avro. We are on their standard variable rate. We realise we will have to increase our DD before the end of the year. Santander are increasing cashback on their 123 energy bills from 2% to 4% for 2 months for DD`s starting in September. Therefore I might as well increase our DD now. I was thinking about £250. Does this seem roughly the right amount or should I contact Octopus for their estimate.

Mstty

You can only really know for sure if you know your annual usage in kWh.

If you provide that there are a number of helpful people who will.calculate the probably cost come October and beyond.

rjmachin

£250 per month does seem to be the maximum you will be able to get cashback on, which will be £10 per month (normally £5 per month).

£10 is 4% of £250, so if you want to get the maximum gain from the cashback, that is the right amount.

You could increase it further if you can afford to, to give you more of a buffer over the winter months, but that is your decision

QrizB

Your Octopus account (or your recent bills) should include an estimate of your annual use for each fuel, in kWh.

If you can share those numbers we can calculate a likely annual cost and then divide by 12 to give a monthly payment.

Snwps

Thanks for the heads up on the increase in cashback from Santander on energy DD's. 

where_are_we

rjmachin said:

£250 per month does seem to be the maximum you will be able to get cashback on, which will be £10 per month (normally £5 per month).

£10 is 4% of £250, so if you want to get the maximum gain from the cashback, that is the right amount.

You could increase it further if you can afford to, to give you more of a buffer over the winter months, but that is your decision

This is why I suggested an increase to £250, which would give the maximum cashback of £10 a month for September and October DD`s.

• The above increased cashback rates and caps are temporary and for the period stated. 

This means that from November onwards the cap will reduce back to £5 a month on energy DD`s.

So disregarding our eventual bills, and then  £250 is the optimum DD giving maximum cashback of £10 for September and October and then £5 for November onwards. How the Goverment`s £400 energy discount, whereby households will get a £66 rebate on their DD form October and November and then a £67 rebate from December through to March of next year, will affect Santander`s cashback calculations for those 6 months I`m not sure. Would the optimum DD for maximum cashback actually be £250 plus £66 = £316?

MWT

where_are_we said:

Would the optimum DD for maximum cashback actually be £250 plus £66 = £316?

That seems likely given what we know of how this Government contribution will be handled.

pochase

You don't give your usage data, but if £100 at October cap rates was not enough you might be looking at £300, the cap might be increasing by over 180% from last October to this October if the predictions are correct. Add to that the predicted January increase and it might be more than £300.

Section62

where_are_we said:

rjmachin said:

£250 per month does seem to be the maximum you will be able to get cashback on, which will be £10 per month (normally £5 per month).

£10 is 4% of £250, so if you want to get the maximum gain from the cashback, that is the right amount.

You could increase it further if you can afford to, to give you more of a buffer over the winter months, but that is your decision

This is why I suggested an increase to £250, which would give the maximum cashback of £10 a month for September and October DD`s.

• The above increased cashback rates and caps are temporary and for the period stated. 

This means that from November onwards the cap will reduce back to £5 a month on energy DD`s.

So disregarding our eventual bills, and then  £250 is the optimum DD giving maximum cashback of £10 for September and October and then £5 for November onwards. How the Goverment`s £400 energy discount, whereby households will get a £66 rebate on their DD form October and November and then a £67 rebate from December through to March of next year, will affect Santander`s cashback calculations for those 6 months I`m not sure. Would the optimum DD for maximum cashback actually be £250 plus £66 = £316?

Santander's cashback system is based on individual customer's statement months, not calendar months, and the terms of this offer are that the extra cashback will be paid on the DD's taken in the customer's statement months which start in September and October.

If the date of your energy DD's is before the date of the start of your Santander statement month, then the extra cashback will be paid on the DD's taken in October and November.

More discussion about this point here -

https://forums.moneysavingexpert.com/discussion/6376391/santander-doubling-energy-cashback-for-2-months/p3

Section62

MWT said:

where_are_we said:

Would the optimum DD for maximum cashback actually be £250 plus £66 = £316?

That seems likely given what we know of how this Government contribution will be handled.

It depends whether the energy supplier takes the normal DD and then refunds £66 to your bank account, or adjusts the DD down by £66.  Suppliers can take either option.

badmemory

According to my supplier they will take the required DD to cover what they calculate will be the bill on the SVR & then refund my bank account with the £66/67 after they receive the DD.  It will not go into my account with them.  I don't know if they are all doing the same.  It makes me wonder what they will do with people who do not pay by DD.

They also say if the required DD is under the £66, they will refund whatever the DD is & put the balance on the account.