Advice - gas and electric DD going DOWN from Oct

Burnsie1983

Hi all

I moved into my house in April 21, and in Sep 21 I changed rates for 2 years fixed, so the raise in bills will so far not affect me (I’m not smug, flipping mortgage is up soon!!) 

I pay £96 DD, which was much, I told them that, I live on my own and don’t have the heating on in the mornings etc. But hey. So, I average £70pcm over the last year for both gas and lecky.

Coupled with the government's £400, Im guessing this is why they want to reduce my monthly DD as I’ll be in mega credit by next summer (£500-700 ish).

Can I request that they only reduce it to £50-70ish, as at the moment they will take it down to £30... and means I'll probably start to owe again near the end of my contract where I will undoubtably have to go on a higher rate on my new one. 

Astria

If you have an online account it might be easier to wait until they reduce it then increase it again yourself.

HumberFlyer

Burnsie1983 said:

Hi all

I moved into my house in April 21, and in Sep 21 I changed rates for 2 years fixed, so the raise in bills will so far not affect me (I’m not smug, flipping mortgage is up soon!!) 

I pay £96 DD, which was much, I told them that, I live on my own and don’t have the heating on in the mornings etc. But hey. So, I average £70pcm over the last year for both gas and lecky.

Coupled with the government's £400, Im guessing this is why they want to reduce my monthly DD as I’ll be in mega credit by next summer (£500-700 ish).

Can I request that they only reduce it to £50-70ish, as at the moment they will take it down to £30... and means I'll probably start to owe again near the end of my contract where I will undoubtably have to go on a higher rate on my new one. 

I don't know who your supplier is...but are they not just suggesting you reduce the amount you pay.... you enter the figure you want to pay per month. Shell energy are always making a a suggestion for me to reduce ny dd..... I just ignore it, as I will going forward. I expect to be £700 ish in credit next august when my fixed tarrif ends. A good start to paying silly amount tarrif.

Ultrasonic

The reduction you've been advised of is how the £400 government support is being given. What you pay will be reduced by £66 (£96 down to £30) but your account will still be credited with £96. This has been poorly explained and you're far from alone in asking questions like this, but you don't need to do anything.

Burnsie1983

Ultrasonic said:

The reduction you've been advised of is how the £400 government support is being given. What you pay will be reduced by £66 (£96 down to £30) but your account will still be credited with £96. This has been poorly explained and you're far from alone in asking questions like this, but you don't need to do anything.

So, inlay £30 the government pays the rest until the £400 credit is used up?

Ultrasonic

Burnsie1983 said:

Ultrasonic said:

The reduction you've been advised of is how the £400 government support is being given. What you pay will be reduced by £66 (£96 down to £30) but your account will still be credited with £96. This has been poorly explained and you're far from alone in asking questions like this, but you don't need to do anything.

So, I pay £30 the government pays the rest until the £400 credit is used up?

Yes, which is over the next 6 months. It's a mix of £66 and £67 payments to make £400.

(Editing your post to what I'm sure you meant  .)

QrizB

Burnsie1983 said:

Ultrasonic said:

The reduction you've been advised of is how the £400 government support is being given. What you pay will be reduced by £66 (£96 down to £30) but your account will still be credited with £96. This has been poorly explained and you're far from alone in asking questions like this, but you don't need to do anything.

So, inlay £30 the government pays the rest until the £400 credit is used up?

You will pay £30 a month for the next six months, and the government will pay £66. Your account will be credited by £96 as usual.

After the six months are up, your DD will go back to £96.

(The government payment is £66 for two months then £67 for four months, so it totals £400. You might find your DD falls again to £29 from December.)

[Deleted User]

Before spending the £400, I have worked out my revised annual cost based on my new tariff and my annual usage in kWh. I added 15% to the annual usage because the last Winter season was relatively warm. Having worked out the new annual cost, I deducted my credit balance and worked out what my monthly payment should be.

My worry is that people will spend the £400 without a second thought. At the back of my mind is the simple fact that the cost of energy for a TYPICAL Ofgem consumer has increased by 95% from 1 October 2021 to 1 October 2022 (the power of compound interest).