Shell’s recommended monthly DD too high!

Fearlessfuzzy

I’ve been advised by Shell energy that I should increase my monthly DD to £930, which including the government’s £400 would mean paying them £11560 pa! But I’m currently £350 in credit and they project my usage as just over £6000pa. So if I followed their advice it would seem they’d be sitting on a pile of my money by the end of the year. Or am I missing something?

The_Fat_Controller

What is your annual usage in kWh for both fuels ?

What tariff are you on and what are the unit rates and standing charges ?

If on a fix, does that end in the next 12 months ?

DD amounts are pointless to quote without knowing actual usage.

Spacie22

Shell base their calculations on aiming for a zero balance on the 12 month anniversary of you joining them, not the next 12 months from today.  So if there are only a couple of months left until then it can distort the amount.

Also the quoted DD amount will be reduced by the government's £66 when they take it. (I've just been pleasantly surprised!)

dunstonh

 But I’m currently £350 in credit and they project my usage as just over £6000pa.

£350 credit at this point on a projected use that will cost over £6000 is low. 

So if I followed their advice it would seem they’d be sitting on a pile of my money by the end of the year. Or am I missing something?

You are missing your actual usage.  i.e. how many units do you actually use a year.  That is the vital bit of information that will lead you to the correct figure you should be paying.

fordyms

Work out how much you expect it to cost, budget accordingly and just pay your bill monthly, put the extra into a savings account for when the bill is higher. It's not that difficult to work out. Shell allow you to change your DD to do this. Can't see the logic in letting Shell sit on your money interest free, they have enough of their own already..  Mind you if you are spending £6k on energy you need to take a long hard look on what your are using it on, unless you are a business.

fordyms

fordyms said:

Work out how much you expect it to cost, budget accordingly and just pay your bill monthly, put the extra into a savings account for when the bill is higher. It's not that difficult to work out. Shell allow you to change your DD to do this. Can't see the logic in letting Shell sit on your money interest free, they have enough of their own already..  Mind you if you are spending £6k on energy you need to take a long hard look on what your are using it on, unless you are a business.

Just to add Shell wanted £300 a month off me - even with the price rises I expect my bills to be about £100-£120 over winter.  Last bill was £87, less the £66 rebate - £21.

[Deleted User]

Why do people keep insisting that the answer to every DD query is “move to variable DD”?

armistice

[Deleted User] said:

Why do people keep insisting that the answer to every DD query is “move to variable DD”?

Because people keep complaining their DD is too high / more than their usage.  If they don't understand why that's the case moving to variable DD (paying for actual monthly usage) solves those complaints.

Jyana

armistice said:

[Deleted User] said:

Why do people keep insisting that the answer to every DD query is “move to variable DD”?

Because people keep complaining their DD is too high / more than their usage.  If they don't understand why that's the case moving to variable DD (paying for actual monthly usage) solves those complaints.

Does it in every case though? I do wonder if it just creates different difficulties down the line as we're facing the winter months, and it may be an option that soon becomes withdrawn if it causes debts for too many customers, I fear. 

[Deleted User]

armistice said:

[Deleted User] said:

Why do people keep insisting that the answer to every DD query is “move to variable DD”?

Because people keep complaining their DD is too high / more than their usage.  If they don't understand why that's the case moving to variable DD (paying for actual monthly usage) solves those complaints.

And then creates the “why does the supplier keep changing my bill” and “why is my bill so much this month” complaints.

Plus the “I can’t afford these huge bills, what do I do” right the way through winter.

EssexHebridean

Deleted_User said:

armistice said:

Deleted_User said:

Why do people keep insisting that the answer to every DD query is “move to variable DD”?

Because people keep complaining their DD is too high / more than their usage.  If they don't understand why that's the case moving to variable DD (paying for actual monthly usage) solves those complaints.

And then creates the “why does the supplier keep changing my bill” and “why is my bill so much this month” complaints.

Plus the “I can’t afford these huge bills, what do I do” right the way through winter.

The second of those points is why the advice to consider variable DD should always be backed up with a reminder that it only works if someone is confident in their budgeting abilities around it. Otherwise, you're right, the risk is that the person concerned will just end up in debt as a result. It can be a good option for the right person in the right situation - but it's not a sticking plaster to solve every issue, I'd agree.