Energy charge for not setting up direct debit

whispernikki188

Hi, 

I think it is bad that if I decide to cancel my direct debit and pay each month just what I use and not their projections they charge £48 a year!
i think  this is unlawful.. 
im thinking of just as I said above pay what I owe minus £4 a month. 

I made a complaint because they wanted £201 a month when I use £121 approx each month, they said, I could only set up a direct debit for the higher amount because of the winter fuel projection that I could use. 

Why should I pay extra for them to invest when I can pay each month when they send the bill manually by debit card. 

gfunkuk

Or just set up a variable direct debit and pay for what you use each month?

MWT

whispernikki188 said:

Hi, 

I think it is bad that if I decide to cancel my direct debit and pay each month just what I use and not their projections they charge £48 a year!
i think  this is unlawful.. 
im thinking of just as I said above pay what I owe minus £4 a month. 

I made a complaint because they wanted £201 a month when I use £121 approx each month, they said, I could only set up a direct debit for the higher amount because of the winter fuel projection that I could use. 

Why should I pay extra for them to invest when I can pay each month when they send the bill manually by debit card. 

You do not say who your energy supplier is, but they are allowed to have different rates for payment by direct debit vs a credit account.

... but with most suppliers you can opt for payment by variable direct debit, and that keeps the tariff rate the same, but just takes the payment each month based on what you have actually used.

whispernikki188

I’m with shell im
on a fixed rate till March.. 

Astria

They are allowed to charge more for payment methods which cost them more to process. DD is by far the cheapest way to get money from someone.

MWT

whispernikki188 said:

I’m with shell im
on a fixed rate till March.. 

Easy solution then..

https://help.shellenergy.co.uk/hc/en-us/articles/360001033877-Should-I-set-up-a-variable-Direct-Debit-

As you'll see there, they will give you the same discount as you get for your current payment method, so no £48 increase...

[Deleted User]

Hi,

remember though if you go on to variable DD your winter bills will be a lot higher, so be prepared.

Alnat1

With variable DD you'll give a meter reading on the same dates each month and a bill will be produced. Around 14 days later the DD will be taken from your bank for the bill amount. You say you're using £121 a month now, so that is what you will pay this month.

In December, with the heating on a lot, the bill might be £450 or more. Can you afford that?

If you know you can save and budget for the higher cost winter months then go variable. If not, go with paying the equal monthly DD of £201 which will balance out over the year.

wrf12345

With systems overload it is quite possible that you won't be able to give them a reading (smart meters no problem, usually) and they will do a silly estimate of three to four times actual usage and blow the balance in your bank acc if the vari dd goes thru, so potentially giving far too much power to them. You are not dealing with a normal business (bad enough) but businesses that are absolutely desperate for cash one way or another.

If the new govn manages to get rid of standing charges and point out that prepayment meters do not create any debt and should therefore be cheaper not more expensive then that will be the way to go, though probably not easy to get one fitted. That would take all the power away from these crazy companies (and they won't like that). If there was a push to make prepayment meters mandatory, the next step would be to have national grid buy and sell energy directly to customers, getting paid via the meter, saving 20-30 percent on the unit cost (and I think there should be a single unit cost for the whole of England rather than absurd current mess).

macman

It's not a new gov't, it's a new PM and cabinet. Neither candidate is going to abolish standing charges.
Where do you get '20-30% saving' from? Are you suggesting that the end providers are making that kind of margin? it's fantasy. The margin under the SVT price cap is 1.9%.

dunstonh

I think it is bad that if I decide to cancel my direct debit and pay each month just what I use and not their projections they charge £48 a year!

You don't need to use their projections.  Most suppliers allow you to change the amount online.  Some require you to speak to them to make sure the amount you are paying is reasonable.  But in the vast majority of cases, you are in control unless there are arrears.

i think  this is unlawful.. 

its not.

I made a complaint because they wanted £201 a month when I use £121 approx each month, they said, I could only set up a direct debit for the higher amount because of the winter fuel projection that I could use. 

Nobody uses the same amount each month of the year.   Less in summer, more in winter.