Energy bills discount

Ceej1965

Can anyone tell me what is supposed to happen when your direct debit monthly is bigger than your actual energy usage, and the company has taken the Govt subsidy off your direct debit amount and not the bill?  My bills are always smaller in the summer months like most peoples so in October I have not received the discount promised as I paid more than the bill was.  However I know over the next few months it will be bigger and that’s why my provider charges me so much.  Surely this can’t be right I though everyone was supposed to get the discount for 6 months equalling £400?

BUFF

You should get 6 months of £66/67 support per month. Exactly how that works varies by supplier. Who are you with?

MWT

Ceej1965 said:

Can anyone tell me what is supposed to happen when your direct debit monthly is bigger than your actual energy usage, and the company has taken the Govt subsidy off your direct debit amount and not the bill?

In that case the supplier will be adding a credit of £66/67 to your account balance.

So over the 6 months you are going to have £400 more in your bank account because they have reduced your DD, and your supplier account balance will look just as it would if they had not reduced your DD.

[Deleted User]

Ceej1965 said:

Can anyone tell me what is supposed to happen when your direct debit monthly is bigger than your actual energy usage, and the company has taken the Govt subsidy off your direct debit amount and not the bill?  My bills are always smaller in the summer months like most peoples so in October I have not received the discount promised as I paid more than the bill was.  However I know over the next few months it will be bigger and that’s why my provider charges me so much.  Surely this can’t be right I though everyone was supposed to get the discount for 6 months equalling £400?

Are you confusing monthly DD payments with energy charges? DD payments are based on a 12 month energy cost. For example if, based on kWh/year and tariff, your annual energy cost was £1200 then your monthly DD would be set at £100 per month irrespective of the fact that your energy bill came to, say, £60 in September.

Under the EPG rules if your monthly DD was set at £50 then you would get what some suppliers are calling a ‘payment holiday’. If your DD was, say, £80 then the supplier would discount your payment for the next 6 months by £66/67 per month. The FULL amount of the £66/67 benefit would still be added to your energy account balance. That said, in my example of a £50 deferred payment some suppliers are sending a credit of £16/17 back to consumer’s banks.

Before you dash out and spend the £400, it is worth bearing in mind that the ‘basket of energy’ that you bought from your supplier last Winter for £100 will now cost you £195.

It follows that you need to calculate your new 12 month energy cost based on your annual usage and tariff. From this cost, add/subtract your debit/credit balance to give you a revised annual cost. If you divide this by 12, this should be your monthly DD payment. If it comes out at £80 per month, then you should pay £13/14 for the next 6 months and then £80 a month thereafter.

WARNING - the above assumes that we do not have a cold Winter: use more energy will result in a request for a higher monthly DD payment in the New Year.

jackiepoems

I am with EDF and despite paying direct debit and having a huge credit balance they have credited the £66 to the account and not my bank whilst increasing my direct debit .

Robin9

@jackiepoems

Patience -  allow for 4/5 working days to reach your bank.


Does your online a/c show £66 credit and a later £66 refund ?