Increased DD from companies

walshj

Just got a large DD recommendation from my energy supplier  (no surprise)which does not factor in the £400 the company will receive  (surprise !) Trying to change it is not easy Are all companies doing this 

dunstonh

Are all companies doing this 

They are for those that are behind on where they think they should be.

Your comment is a bit of an FAQ at the moment and in the majority of the cases, the poster has underestimated their use and the level of payment being made.   You usually find that the revised figure is in the rough ballpark of where it should be.    Though some suppliers had started issuing increases before the Government stepped in and have since been amending them again.

laura_louise

I just got notice of a doubling in my direct debit payment from Eon Next, despite going into winter with £500 credit on account. I was planning to keep my heating on as low as 14 degrees over the winter to save substantial amounts but they won't allow me to drop my direct debit by more than 10% of their recommended amount. I don't want to cancel the direct debit because I think it costs more to pay on receipt of bill, but i also don't want to massively overpay... bit stuck really. 

[Deleted User]

walshj said:

Just got a large DD recommendation from my energy supplier  (no surprise)which does not factor in the £400 the company will receive  (surprise !) Trying to change it is not easy Are all companies doing this 

The DD is not supposed to factor in the £400.  This is either going to be a refund or a temporary and 'invisible to you' change to the DD.

There is no conspiracy here.

molerat

The company will not be "receiving" £400, they will be reducing your DD by £66/£67 per month for the 6 months or returning that amount into your bank account. You should not factor in the £400, doing so will possibly put your account into debit.

[Deleted User]

laura_louise said:

I just got notice of a doubling in my direct debit payment from Eon Next, despite going into winter with £500 credit on account. I was planning to keep my heating on as low as 14 degrees over the winter to save substantial amounts but they won't allow me to drop my direct debit by more than 10% of their recommended amount. I don't want to cancel the direct debit because I think it costs more to pay on receipt of bill, but i also don't want to massively overpay... bit stuck really. 

£500 credit on a 25000kWh annual usage is a lot different to £500 credit on a 2500kWh annual usage.  We have no idea whether you are in a good or a bad situation without additional information.

Also, how can they know what your plan for heating over the upcoming winter will be?  Saying that you aren't going to use much isn't enough for them to risk you going into massive debt.

Robin9

laura_louise said:

I just got notice of a doubling in my direct debit payment from Eon Next, despite going into winter with £500 credit on account. I was planning to keep my heating on as low as 14 degrees over the winter to save substantial amounts but they won't allow me to drop my direct debit by more than 10% of their recommended amount. I don't want to cancel the direct debit because I think it costs more to pay on receipt of bill, but i also don't want to massively overpay... bit stuck really. 

You may be able to do it in steps - accept the 10% and see what happens in a months time.

14 deg !        No thank you -  you might as well not have any heating.

[Deleted User]

laura_louise said:

I just got notice of a doubling in my direct debit payment from Eon Next, despite going into winter with £500 credit on account. I was planning to keep my heating on as low as 14 degrees over the winter to save substantial amounts but they won't allow me to drop my direct debit by more than 10% of their recommended amount. I don't want to cancel the direct debit because I think it costs more to pay on receipt of bill, but i also don't want to massively overpay... bit stuck really. 

There is absolutely no way that an energy supplier is going to take the word of a customer that energy usage will be reduced. It will respond when it sees evidence of an actual fall in annual usage. If credit has accrued, then you can expect this to be reflected in your future DD payment. Suppliers are under remit from Ofgem to stop consumers from getting into debt.

BUFF

Robin9 said:

laura_louise said:

I just got notice of a doubling in my direct debit payment from Eon Next, despite going into winter with £500 credit on account. I was planning to keep my heating on as low as 14 degrees over the winter to save substantial amounts but they won't allow me to drop my direct debit by more than 10% of their recommended amount. I don't want to cancel the direct debit because I think it costs more to pay on receipt of bill, but i also don't want to massively overpay... bit stuck really. 

You may be able to do it in steps - accept the 10% and see what happens in a months time.

14 deg !        No thank you -  you might as well not have any heating.

From personal experience 14C is a shade low for me these days (even with layers) but I have done it a few years ago. It certainly beats the 5-6C that the house would probably fall to without any heating.

BooJewels

molerat said:

The company will not be "receiving" £400, they will be reducing your DD by £66/£67 per month for the 6 months or returning that amount into your bank account. You should not factor in the £400, doing so will possibly put your account into debit.

Can you reference somewhere where this method is outlined please, because that's not what I'm reading anywhere other than by posters on here.  The Government web site states:  "The discount will be applied to your monthly household electricity bill for 6 months starting in October 2022."  I'm reading the same elsewhere too - a credit to your account, nothing about reducing DD amounts.

That sounds to me - and makes more sense - that a credit will be applied to your electricity account, as though you'd just paid £66 more than you have.  So if I paid £100 by DD, my electricity account would be actually be credited by £166 that month.  I'm trying to project forwards to see what I need to set my DD at to come out around the same credit balance this time next year.

[Deleted User]

BooJewels said:

molerat said:

The company will not be "receiving" £400, they will be reducing your DD by £66/£67 per month for the 6 months or returning that amount into your bank account. You should not factor in the £400, doing so will possibly put your account into debit.

Can you reference somewhere where this method is outlined please, because that's not what I'm reading anywhere other than by posters on here.  The Government web site states:  "The discount will be applied to your monthly household electricity bill for 6 months starting in October 2022."  I'm reading the same elsewhere too - a credit to your account, nothing about reducing DD amounts.

That sounds to me - and makes more sense - that a credit will be applied to your electricity account, as though you'd just paid £66 more than you have.  So if I paid £100 by DD, my electricity account would be actually be credited by £166 that month.  I'm trying to project forwards to see what I need to set my DD at to come out around the same credit balance this time next year.

The EdF website (refund after DD is taken):

The E.ON Next website (temporary change to DD):


The British Gas website (refund after DD is taken):

Need any more?  Look on your own supplier's site and they will tell you how it works.  In fact, I don't recall any supplier doing it the way you suggest.