Should I cancel my DD?

illbeurhuckleberry

Hi all.

I was reading on another forum where people are cancelling their DD for gas and electric so there only paying for what they used.
I'm currently using £54 but paying £98 by DD. I'm in credit by £345 but So enegry have informed me im not entitled to all of this credit back only a % in line with their policy.
I'm now considering cancelling my DD and sending readings particularly with the increase in October and January.
Any reason as to why this is not a good idea( I cant see any). What are other people on here doing?

Thanks all.

GingerTim

Paying on receipt of your bill is typically about 7% more expensive than by direct debit.

Do So Energy allow you to pay by variable direct debit? If so, you could then pay each month for what you use - with the caveat that payments for winter months will be very high compared to summer.

illbeurhuckleberry

Thanks Gingertim. I'm not sure if they allow variable DD but thats a great idea and question to ask. I also had no idea non DD was more expensive . Thanks for replying.

pochase

If you just want to pay for what you use, change to a variable direct debit.

You supply monthly readings, either manually or via smart meter, and they will bill you for your usage only in arears. You keep the 7% direct debit discount if you do it this way.

Just budget for very high winter bills. If you use currently £54, that is most likely your use for summer, it will be much higher during winter, add to that the upcoming cap increase, which will almost double your cost, and there are could be £200 to £300 monthly bills coming up for the coldest winter months.

QrizB

Don't cancel your DD, you might end up paying slightly more.

Instead, see if So Energy will switch you to variable monthly DD payment, where you pay your exact bill every month rather than the same amount every month of the year. Your summer bills will be lower but your winter bills will be higher.

This will give you the responsibility for budgeting, so make sure you're comfortable with this!

pochase

wittynamegoeshere said:

You don't want to cancel the DD, as you'll then be charged a higher rate.

You need to pay by variable direct debit, i.e. the amount you use per month every month.  Some suppliers allow this, some don't.  Start by asking yours if they will, I did this with Eon Next.  They didn't refund my balance but used it first, so I paid nothing for a few months.

If they won't then look at changing suppliers to one that will allow it.  Eon Next definitely do.

Just be ready for some hefty bills for £100s per month in the winter.

Does Eon Next now allow new customers on SVT?

Robin9

illbeurhuckleberry said:

Hi all.
.............................sending readings particularly with the increase in October and January..............................
Thanks all.

Assuming you've not got a Smart - when did you last send So a reading ?   Send them a reading today and get an up to date statement. Then send readings every month -(And keep your own records)

illbeurhuckleberry

I don't possess a smart reader and input monthly readings. I cant download my statements from Do enegry currently but I have noted they are offering me a So flex DD of £77 pcm. I'm wanting to check if the standing rates are the same including unit rates. No reason to believe there any different. Still though I would be better off on a variable DD. If they will do this for me. Its going go be a cold winter in my house and for most of the nation.

[Deleted User]

I am not convinced that now is the time for people to be moving to a variable DD. For this to work, people need to keep a very close eye on their energy costs and be prepared for a very large energy bill to hit the doormat in January. I sense that some people are moving to variable DDs because they are in a state of denial about the increasing cost of energy. 

pochase

If somebody is already considering to cancel the direct debit and moving to paying on receipt of the bill like in the case of the OP I don't see your concern as valid.

Here the advise to use a variable direct debit will save the OP 7%, while the problem of higher bills is exactly the same.

In general I agree with you, but not just for those moving onto variable direct debit, also many of those who "forced" suppliers to decrease the direct debit increases because they believe them totally unjustified.

I expect by spring next year we will see many posts of people who are suddenly find themselves in debt.

PennineAcute

Dolor said:

I am not convinced that now is the time for people to be moving to a variable DD. For this to work, people need to keep a very close eye on their energy costs and be prepared for a very large energy bill to hit the doormat in January. I sense that some people are moving to variable DDs because they are in a state of denial about the increasing cost of energy. 

 I moved onto variable because the gas DD they were asking me to pay (fixed to July 23) was double what I have calculated.  If what I have to pay each month is less than my calculated DD, then I will make a payment for the difference.

I was not prepared to pay £90.46 a month for gas, when my spreadsheet recommended £50.92.