Increased DD from companies

[Deleted User]

molerat said:

BooJewels said:

Deleted_User said:

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.

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.

I wasn't personally 'suggesting' anything, but directly quoting the Government web site, with a link.  Many thanks for those references, I'm not with any of those companies so hadn't even looked at them.  I'm with Octopus and my initial search came to their blog about it, which sent me to the BBC web site to explain how it worked, which did say it would be a credit to your electricity account.

I've just searched again and found another Octopus page which does indeed state:  "Direct Debit customers will have their monthly payment reduced by the discount amount."  I can't spend too long on their site as their colour scheme can start off a migraine, so I only look in very short bursts.

What a stupid way to implement it - I'll have to overpay by £66/£67 just to keep my account straight.  I just can't figure it out at the moment.

If your recommended DD is set correctly at 1/12th your EAC then your account will be straight as that is exactly what will be credited to your account.  The difference is that you will be getting £400 spread over 6 months extra in your bank account to spend as you wish.   If you have gas, or in fact wood or oil, from a separate supplier there is no rebate to that account so you could put that £400 there to help out over winter.  So in my opinion this is the best way to proceed for the majority, giving people a choice adds extra complications with more chances of it going wrong somewhere.  You could always make separate one off payments to your electric account but that runs the risk of the DD being reduced to "keep your account straight".

Read further - they later suggest that they wanted 1/12 EAC taken from their bank account each month AND 1/12 EAC credited to their energy account each month, but somehow the rebate should be taken account into this.

laura_louise

[Deleted User] 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. 

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.

[Deleted User] 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. 

£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.

By way of update, EON Next had screwed up the calculations somehow, instead of doubling my monthly payments they're actually reducing them. Magically changed when I logged in today despite not contacting them. I think they screwed up somewhere. For those who asked previously, my usage was 11,000kWh last year heating house to 19-20 degrees, combined elec + gas bill currently £90, they wanted it to go up to £180, but then it's magicked itself down to £80 somehow now (correct figures, likely, plus my sizeable amount on account, comparatively speaking). This year I plan to do 14-15 degrees, I think it's very doable for me without being so cold I feel like death. Eon didn't know about my plans because I hadn't phoned them, i just logged in today and magically my direct debit had gone way down

[Deleted User]

laura_louise said:

[Deleted User] 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. 

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.

[Deleted User] 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. 

£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.

By way of update, EON Next had screwed up the calculations somehow, instead of doubling my monthly payments they're actually reducing them. Magically changed when I logged in today despite not contacting them. I think they screwed up somewhere. For those who asked previously, my usage was 11,000kWh last year heating house to 19-20 degrees, combined elec + gas bill currently £90, they wanted it to go up to £180, but then it's magicked itself down to £80 somehow now (correct figures, likely, plus my sizeable amount on account, comparatively speaking). This year I plan to do 14-15 degrees, I think it's very doable for me without being so cold I feel like death. Eon didn't know about my plans because I hadn't phoned them, i just logged in today and magically my direct debit had gone way down

If your online DD has changed today, that's likely to be the adjustment for the government £400 - nothing to do with usage.

And if that's true, then your £90 has gone up to £150.

chris_n

[Deleted User] said:

laura_louise said:

[Deleted User] 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. 

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.

[Deleted User] 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. 

£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.

By way of update, EON Next had screwed up the calculations somehow, instead of doubling my monthly payments they're actually reducing them. Magically changed when I logged in today despite not contacting them. I think they screwed up somewhere. For those who asked previously, my usage was 11,000kWh last year heating house to 19-20 degrees, combined elec + gas bill currently £90, they wanted it to go up to £180, but then it's magicked itself down to £80 somehow now (correct figures, likely, plus my sizeable amount on account, comparatively speaking). This year I plan to do 14-15 degrees, I think it's very doable for me without being so cold I feel like death. Eon didn't know about my plans because I hadn't phoned them, i just logged in today and magically my direct debit had gone way down

If your online DD has changed today, that's likely to be the adjustment for the government £400 - nothing to do with usage.

And if that's true, then your £90 has gone up to £150.

You can see what all of the posts on here are going to be saying in 6 months. ' It's coming out of winter and I am in credit,  why are xxx energy company increasing my direct debit by £67'

BooJewels

molerat said:

BooJewels said:

Deleted_User said:

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.

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.

I wasn't personally 'suggesting' anything, but directly quoting the Government web site, with a link.  Many thanks for those references, I'm not with any of those companies so hadn't even looked at them.  I'm with Octopus and my initial search came to their blog about it, which sent me to the BBC web site to explain how it worked, which did say it would be a credit to your electricity account.

I've just searched again and found another Octopus page which does indeed state:  "Direct Debit customers will have their monthly payment reduced by the discount amount."  I can't spend too long on their site as their colour scheme can start off a migraine, so I only look in very short bursts.

What a stupid way to implement it - I'll have to overpay by £66/£67 just to keep my account straight.  I just can't figure it out at the moment.

If your recommended DD is set correctly at 1/12th your EAC then your account will be straight as that is exactly what will be credited to your account.  The difference is that you will be getting £400 spread over 6 months extra in your bank account to spend as you wish.   If you have gas, or in fact wood or oil, from a separate supplier there is no rebate to that account so you could put that £400 there to help out over winter.  So in my opinion this is the best way to proceed for the majority, giving people a choice adds extra complications with more chances of it going wrong somewhere.  You could always make separate one off payments to your electric account but that runs the risk of the DD being reduced to "keep your account straight".

Unfortunately, my DD was set a little low, as I'd built up too much credit earlier in the year (had been on a decent fix and got WHD when my late husband was getting PIP), so did some adjustments, long before these cap and £400 announcements, so had reduced my DD to eat into it a bit.  I think Octopus suggested £90 and I went a smidge higher at £100.  I only have my electricity with Octopus and it's reasonably consistent all year.  I'd just waited for my September payment to go out yesterday, so I could increase the DD from October, hence asking about the changes to DDs.

After someone earlier in the thread commented that Octopus had already reduced their DD by £66 I checked my account and they had indeed reduced my £100 DD to £33 for October, which even with the £66 credit was going to be too low going forwards at post-October prices - it would be okay for a couple of months, because I was nearly £200 in credit, but then I'd start dropping behind.  The assorted screens allowing me to look at forecasts and to change my payment gave inconsistent information, with different amounts in different places.  In the end, the only amount they'd actually let me change to was a monthly DD of £151.91 - so I changed it to that.

Whether by Octopus design or pure fluke, this amount should work out just about right for me - if it stays at that for a year - only time will tell - it may of course need to increase by £67 in April, but I'll then be paying too much and probably well in credit.  This amount x 12 +£400 Government credit would cover my own anticipated use at post-October prices, with a 10% usage contingency built in, which is my usual habit, to ensure that I'm always on the right side of my bills, plus leaving me with a similar credit this time next year.