HELP!?

Sarah170681

Yes of course I understand that. 

My message was meant in a way that I’m not fixating on units .. I just wanted to know the best way to go if I wanted a similar regular outgoing each month. 

So people talking to me about units isn’t really helping me figure out what’s the best way to go. 

All I wanted to know is what I needed to say to the energy company when I call, I’ve never owned a home before so it’s all new to me! So sorry for not understanding units! 

PennineAcute

But understanding units is important.

If you want a bit of security, pay by fixed monthly direct debit.  They will estimate how much you will use over a 12 month period, divided that by 12 and that is the amount you will pay monthly.   Of course, if you use more than they estimate, then your monthly payment will increase.  If you use less than they estimate, then your monthly payment will decrease.

However, a bif of knowledge goes a long way in helping to ensure you are paying the correct amount.  Many people come on here, as they are in a mess - and sometimes the mess is caused by not keeping on top of monitoring their usage.  This is where the understanding of units comes into play.

In addition, assuming you do not have a smart meter, giving monthly readings of your meters is very important.  This will help to ensure your energy company is taking the correct amount of money each month.

jackieblack

A fixed monthly direct debit on a variable rate tariff is like putting money in a kitty every month - when your usage is billed (either accurately, by you submitting regular meter readings, or estimated by your energy provider in the absence of actual readings) the charges for your usage are deducted from the kitty - this may result in you still owing money despite paying a set amount every month if you are using more energy than the amount of your direct debit covers. (The theory is/used to be that the amount you pay each month over the warmer months when you’re using less energy builds up a buffer for the colder months when you’re using more, however with the recent and future increases in the charges this has become more difficult to predict and people are having their direct debits increased hugely to try and minimise building up huge debts.)

[Deleted User]

Really simply, if you sign up for fixed direct debit then you will known how much you are going to pay each month.

Everything else is just about knowing how often (and when and a guess at how much) this amount will change, but they will always tell you before it changes.

PennyForThem_2

OK - Sarah.  What everybody is saying is that units are important.

So many posters on here think that the amount they pay by Direct Debit (DD) covers all of their gas/electric usage.  It does not!

THAT is why units are important.  If you have Smart meters for gas/electric which 'talk' to your utility supplier - then fine.  Your utility supplier will bill you accurately and also you are (probably) able to see your usage as a graph via your utility site.

IF your meters don't talk to your utility supplier then PLEASE give manual readings monthly.  That way you won't be traumatised by a HUGE bill.  If you feel you CANNOT pay for what you have used, please, please hone them and be totally transparent - the utility supplier is under a legal obligation to help agree an affordable for you payment plan.

The DD you pay does not necessarily cover your usage - you may/probably need to adjust DD payment.  Don't worry if you are in credit to your supplier - (lucky you if you are) - you can always ask for it back, but it acts as a cushion against higher charges for winter.

pochase

Also you will have the same price for three month only with the change to three monthly cap. With the big increases predicted for 2023, a direct debit might need to be reviewed every three months when the new cap SVT starts in future.

If that does not happen you might have exactly the problem that you want to avoid, at the end of the 6 months period you suddenly have a huge debt.

Sarah170681

Thank you everyone.

It’s all just a bit overwhelming this house buying malarkey! Feel like I’m becoming a “proper” adult and I haven’t got a clue what I’m doing 😂

Aylesbury_Duck

Sarah170681 said:

Thank you everyone.

It’s all just a bit overwhelming this house buying malarkey! Feel like I’m becoming a “proper” adult and I haven’t got a clue what I’m doing 😂

Spreadsheets are your friend.  When I bought my first house, I had a collection of ring binders for things like utility bills, council tax, bank statements, etc. and a notebook to track monthly expenditure of each.  Nowadays that's easier with a spreadsheet.  Create that sheet now - put everything item of expenditure you can think of on it, including 'throwaway' things like the coffee you might buy every morning on the way to work, etc. - and start to track your costs versus your income.  Keep it updated when prices change.  You'll soon have an idea of what your disposable income is, which will tell you how much room there is for price increases.  Don't forget to consider scenarios like council tax rising in April, your mortgage rate changing if it's variable, etc.

You'll be fine, but take control now.  It's much easier when you're starting out.

deano2099

We're in a similar situation, moving into a new place that's very different from the current one, and it's pretty tough to budget for how much electric/gas will cost. Sure in terms of appliances usage won't change much, but heating requirements over winter will be very different. The reality is no-one will be able to give you a figure for how much your usage will be, so no-one will be able to give you a price either.
The energy companies will give you an estimate, and set your direct debit at that level but that could be too much or not enough and change, figuring out your usage will be down to you. If you've got a smart meter make sure you have an energy monitor so you can see your daily costs, and that'll help you plan. Bear in mind costs will be loads higher when you're using the heating compared to when you are not. 
I know it feels really bad not to be able to just put a figure in your spreadsheet when you're trying to calculate all your living costs and so on - it is the one big unknown and just something you'll need to ensure you're keeping on top of.

DeeDeeDeeDeeDeeDee

Sarah170681 said:

My partner and I have just bought our first home, we are due to move in in the next couple of weeks. 

I haven’t got the first clue of what I do about the energy when I move in. 

The current owners are with E-ON.

Do I call E-ON and stay with them? What kind of tariff do I agree to? What do I say? I have no idea! Please help 😊

congratulations and I hope all this worry doesn't blight your excitement! x