Changing reduced DD as a result of Govt help

gndalph

I’m with Sainsburys Energy which is actually Eon Next. I’m on a fixed rate that expires on 4th Oct so luckily dodged the April rises. 

I pay £96 pm and am £404 in credit. Plus the Govt help that equals £804 credit effectively. 

Their website still hasn’t given the SVR from 1st Oct, they only offer the variable rate based on what the rise would have been for which they would want £311 pm. No thanks. 

They’ve reduced my DD to £29 pm for 1st Oct to take into account the £67 pm govt help so I’ve just changed it back up to my usual £96pm 

Im trying to work out what I will need to pay each month once my fixed cheap rate expires (in a few days time) The trouble is my estimated usage according to my bills is higher than what my last 12 months usage actually was. Why? 

Using Martin’s calculator my actual annual usage gives me a £199 pm rate but I’ve just had a new combi boiler fitted to replace my 20+ year old ancient inefficient conventional boiler. So I should use less kWh gas now than I did. Is that right? And Martin’s calculator doesn’t take into account the £800 I have in the bank so to speak. 

My question is, am I calculating all this correctly? 

lisyloo

Many companies are not lowering dd and refunding back to your bank.
have you checked what sainsburys are doing?

[Deleted User]

They don’t know you’ve replaced your boiler. They will be predicting a harsher winter than last year. And you do know that if you did go to the £311 based on a higher tariff, as soon as the tariff changed the DD can come down?

[Deleted User]

lisyloo said:

Many companies are not lowering dd and refunding back to your bank.
have you checked what sainsburys are doing?

Yes, reducing DD exactly as the OP said.

BUFF

gndalph said:

 I’ve just had a new combi boiler fitted to replace my 20+ year old ancient inefficient conventional boiler. So I should use less kWh gas now than I did. Is that right? 

If it is set up properly, you make good use of the controls (hopefully upgraded at the same time as your new boiler?) & you don't change your behaviour by heating hotter/same temp for longer or taking more baths/showers, yes. 

gndalph

[Deleted User] said:

They don’t know you’ve replaced your boiler. They will be predicting a harsher winter than last year. And you do know that if you did go to the £311 based on a higher tariff, as soon as the tariff changed the DD can come down?

Yes true although bearing in mind my tariff expired in a week, I thought it best to not take that quote and wait for the new SVR 

gndalph

BUFF said:

gndalph said:

 I’ve just had a new combi boiler fitted to replace my 20+ year old ancient inefficient conventional boiler. So I should use less kWh gas now than I did. Is that right? 

If it is set up properly, you make good use of the controls (hopefully upgraded at the same time as your new boiler?) & you don't change your behaviour by heating hotter/same temp for longer or taking more baths/showers, yes. 

I got the boiler engineer to set it to the optimum flow rate and the controls are also new, so fingers crossed. Thanks for the confirmation, my research online did suggest I would benefit from better efficiency. My old boiler was operating at something around 60% efficiency. 

[Deleted User]

gndalph said:

[Deleted User] said:

They don’t know you’ve replaced your boiler. They will be predicting a harsher winter than last year. And you do know that if you did go to the £311 based on a higher tariff, as soon as the tariff changed the DD can come down?

Yes true although bearing in mind my tariff expired in a week, I thought it best to not take that quote and wait for the new SVR 

Generally, your calculation is right though.  Ignore the government's £400 (or at least you should have, because as you see the supplier adjusts that for you).

(Actual annual usage for next year x actual unit rates) + (standing charges x 365) - credit balance = yearly cost for next year

Divide by twelve to get required DD.

The difficulty is getting next year's actual usage from this year's actual usage.  You're in a much better situation than someone trying to do it from estimates though.  New boiler, well set up, so that's a saving.  Last winter was mild, this one might not be, so that's the opposite.  Maybe they offset, maybe they don't - it's very hard to say unless you start to compare month-by-month as it gets colder.

gndalph

[Deleted User] said:

gndalph said:

[Deleted User] said:

They don’t know you’ve replaced your boiler. They will be predicting a harsher winter than last year. And you do know that if you did go to the £311 based on a higher tariff, as soon as the tariff changed the DD can come down?

Yes true although bearing in mind my tariff expired in a week, I thought it best to not take that quote and wait for the new SVR 

Generally, your calculation is right though.  Ignore the government's £400 (or at least you should have, because as you see the supplier adjusts that for you).

(Actual annual usage for next year x actual unit rates) + (standing charges x 365) - credit balance = yearly cost for next year

Divide by twelve to get required DD.

The difficulty is getting next year's actual usage from this year's actual usage.  You're in a much better situation than someone trying to do it from estimates though.  New boiler, well set up, so that's a saving.  Last winter was mild, this one might not be, so that's the opposite.  Maybe they offset, maybe they don't - it's very hard to say unless you start to compare month-by-month as it gets colder.

Thank you. That’s exactly what I’ll do. I think I’ll ignore the potential savings from the new boiler as this winter may be colder as you point out.  That way whatever amount they quote me once they update their systems, I will have a good idea whether it’s in the right ballpark.