Cancelled direct debit to use up credit that was building up each month

kitchensinq

I noticed that the direct debit energy bills from our previous provider (Bristol Energy) seemed to be constantly in credit. I never used to pay to much attention to the bills but I eventually noticed we seemed to be building up credit which seemed odd to me - our direct debit amount was clearly too large. I emailed them to ask them to reduce the DD amount so we wouldn't keep building up credit but instead just pay for what we used. I never heard back from them, of course. I then realized what I should do - just cancel the direct debit and let them use the credit. When I did so I started getting emails from them! I ignored them, since I knew there was credit.

I'm wondering if anyone has done anything similar with British Gas (our new energy provider)? I can't seem to tell from their opaque bill if we are in credit or not. Anyone know how to find that out? Thx.

[Deleted User]

Don't cancel your direct debit - you may get changed on to a pay-on-bill arrangement and lose the direct debit discount. 

Move to variable direct debit if you like, or have a discussion about changing the DD amount, but in general unilaterally cancelling a DD risks being a very bad thing.

uksitebuilder

Generally, the DD amount specified by your supplier will be based on your usage over the last 12 months.

During the summer months you will accumulate credit.  During the colder months where you use more energy, that credit will deplete.

Your DD will be the same each month throughout the year enabling you to manage your monthly outgoings better.

Unfortunately with the recent massive price hikes, energy companies will be most likely recalculating customer's DD amounts and increasing them.

Section62

kitchensinq said:

I noticed that the direct debit energy bills from our previous provider (Bristol Energy) seemed to be constantly in credit. I never used to pay to much attention to the bills but I eventually noticed we seemed to be building up credit which seemed odd to me - our direct debit amount was clearly too large. I emailed them to ask them to reduce the DD amount so we wouldn't keep building up credit but instead just pay for what we used. I never heard back from them, of course. I then realized what I should do - just cancel the direct debit and let them use the credit. When I did so I started getting emails from them! I ignored them, since I knew there was credit.

I'm wondering if anyone has done anything similar with British Gas (our new energy provider)? I can't seem to tell from their opaque bill if we are in credit or not. Anyone know how to find that out? Thx.

Cancelling your DD is generally a bad idea because -

i) You won't be eligible for the discounted prices that most (excluding a few) energy suppliers give for paying by DD.

ii) If you cancel the DD via your bank rather than asking your energy supplier to put you on a different tariff then you may incur a failed payment fee or administration fee (e.g. £5 with Scottish Power)

If you've built up excessive credit the easiest thing is to ask for a refund.

pochase

When did you get the last bill from BG? They only bill every six months.

All your direct debit payment in the mean time are shown as a credit. I hope you put the money that should have been paid aside. With the cancelled debit order your energy prices have gone up by 7% for not paying by direct debit, and you might be suddenly in debt when they create the bill.

matelodave

It's also a good idea to check your credit score - some companies report your history onto Experian or similar and may show you down as defaulting if they cannot get a direct debit. This could had an adverse affect on you getting credit in the future.

As said above, you should not unilaterally stop your DD but get it adjusted if necessary by negotiating with the energy company. If they dont respond then send them a recorded delivery (signed for) letter

dunstonh

You would expect to be in credit at this time of the year.   You are currently using around 15% of your annual energy.  Come the colder months, you will use around 85% of your annual energy.   

If you are only getting billed 6 monthly and if the readings are not actual but estimated, then you could end up being in for a shock this winter.

macman

Many fixes require DD payment-no other method is accepted. Cancel and they could decide you are in breach of contract and dump you onto SVT. If you are currently on a cheap fix, that would not be desirable.
If you are in credit, the bill has 'CR' after the balance shown.

[Deleted User]

kitchensinq said:

I'm wondering if anyone has done anything similar with British Gas (our new energy provider)? I can't seem to tell from their opaque bill if we are in credit or not. Anyone know how to find that out? Thx.

Hi,

sign in to your account, click energy usage, gives you various options.

Remember if it shows a healthy credit, check when last bill was and deduct usage since then.

wrf12345

You can get a refund of your credit via chat but make sure you are using real rather than estimated readings. Free money coming into the account from the govn in October but rates are going up. They may also be able to set the DD to zero for a few months to use up the credit but you need to chat to them rather than email which will probably take six months for them to work through.