Shell Energy crafty tactics around the £400 october energy rebate

Victoria1025

Thank you everyone, I hadn't realised this was how it was being managed.

[Deleted User]

Victoria1025 said:

Thank you everyone, I hadn't realised this was how it was being managed.

The other bit of your post that you seem worried about is how the credit will be applied.

If say your monthly DD payment was £67 a month then, in October, your monthly DD payment would be reduced to zero but £67 would still be credited to your energy account. Given that people move around, and that the scheme was designed to offset the cost of energy used, there was no other logical way to set it up. Whether the scheme is fair or not is a different question.

doesntnotcompute

It's almost certainly like any other rebate scheme (warm home discount etc), where the energy companies don't get the money up front they have to prove they've issued the money by a certain date and then claim it back.

Chrysalis

I think the way its working is just weird.

What should be happening is credit it all to account, reduce DD's by same amount.

But the council tax rebate was just weird as well, instead of just crediting to council tax account it was sent to peoples bank accounts, totally bizarre.

doesntnotcompute

Chrysalis said:

I think the way its working is just weird.

What should be happening is credit it all to account, reduce DD's by same amount.

But the council tax rebate was just weird as well, instead of just crediting to council tax account it was sent to peoples bank accounts, totally bizarre.

The council tax rebate wasn't really a rebate though, even though that's what it was called. It was a cost of living payment targetted to households in council tax bands A - D. People who get a full council tax rebate and don't pay council tax still got the payment - it wouldn't have been much use as a credit for those people.

For sure the taking people's money and then giving it back to them is bizarre and inefficient though.

scobie

I suspect it’s being handled this way because it wants to stop people misusing it. This way maximises the chance that it will actually be used to alleviate fuel price rises, rather than going on Xmas presents or a holiday. 

Plasticman

I got the email too. I hadn't appreciated that they'd reduce my direct debit as a result so I'd worked out my current DD based on expected spend over the next 12 months (considering the £400 as a reduction in cost). I imagine they'll tell me to increase my DD now so that they can then reduce it for 6 months!

dinkydo62

doesntnotcompute said:

Chrysalis said:

I think the way its working is just weird.

What should be happening is credit it all to account, reduce DD's by same amount.

But the council tax rebate was just weird as well, instead of just crediting to council tax account it was sent to peoples bank accounts, totally bizarre.

The council tax rebate wasn't really a rebate though, even though that's what it was called. It was a cost of living payment targetted to households in council tax bands A - D. People who get a full council tax rebate and don't pay council tax still got the payment - it wouldn't have been much use as a credit for those people.

For sure the taking people's money and then giving it back to them is bizarre and inefficient though.

It was not a council tax rebate. It was nothing at all to do with council tax it was just that the councils were used to issue the money as they had the bank details/details of council bands etc that were needed to target the people entitled to the money.

[Deleted User]

Chrysalis said:

What should be happening is credit it all to account, reduce DD's by same amount.

That is exactly what they are doing but in monthly instalments. Paying it all in a lump sum in October would be, for example, unfair on those who move into their first home in, say, December. 

The system adopted by the Government appears to follow the KISS principle. Moreover, it stops those who choose to ‘live today and pay later’ from blowing the whole £400 on Christmas.

pensionpawn

I'm also with Shell, who haven't yet published rates for 1st Oct. Is there a deadline that they (all energy firms) have to meet in communicating the increases?