£400 energy rebate.

brilec

The Money Saving Expert website says that for Direct Debit customers, Bulb will automatically reduce the DD amount.

This is not true.

I have been on variable monthly DD with Bulb since I joined them in January 2018.

They have credited my account and not reduced my payments. My account was already well into credit at about £650, and now it stands at £716. My monthly payment was £168 but because my credit is high they have just reduced it to £165.

[Deleted User]

Who is “you”?

lisyloo

The energy companies are allowed to do it as they wish.
some are lowering DD, some refunding and some reducing balances,
have you asked for a refund of your credit balance.

or if it bothers you (it does vex me), have you asked if you can pay your bills as they arrive by variable DD?

pochase

How can you be in credit if you have a variable direct debit as you say?

A variable direct debit means that you pay exactly what you have used the previous month, so there can be no credit.

Do you maybe mean you are on a variable tariff, (which everybody at Bulb is as they only offer the SVT), but on a fixed direct debit?

Also did you maybe wanted to answer an existing thread instead of opening a new one?

brilec

The Money Saving Expert site clearly says Bulb will reduce the Direct Debit payments, I was just pointing out that this advice is incorrect, certainly for me.

Regarding being in credit, the energy company dictates what the monthly payment is, and it is normally set at an average over the year, so you end up in credit in the autumn but should break even by the following spring.

Regarding another thread, I failed to find it.

brilec

And by variable Direct Debit, I mean the energy company has the ability to vary the payments without asking my permission. It doesn't mean I would pay each month individually. Never heard of anyoe doing that on DD with energy payments.

Snwps

There are 2 different direct debits when paying for energy:

Fixed direct debit is where the supplier fixes the amount of DD you pay each month. They calculate/estimate your annual usage then split that over 12 equal monthly instalments. 

Variable direct debit is where the supplier bills you for usage used the previous month and you pay that in full each month so theres no debit/credit rolling over. 

Its the other way around to how you think it is.

DE_612183

Ah, I think the "you" that the poster refers to is Martin Lewis - Normally DD's are assessed based on estimated usage, estimated charges and any credit - when the company works thats out they then estimate required payments accordingly.

In normal circumstances if you were on a fixed tariff and were getting an extra £66 a month from the government the DD would be reduced by roughly the same amount.

Best bet is to contact bulb to understand their logic and calculations in this case - something must have changed that made them assume that the payment you have is the amount required.

DE_612183

on your most recent statement - what does it say is your estimated usage for the next 12 months?

Don't forget - prices will also probably rise in April if you are on a variable tariff and their is unlikely to be anymore government help.

DE_612183

brilec said:

And by variable Direct Debit, I mean the energy company has the ability to vary the payments without asking my permission. It doesn't mean I would pay each month individually. Never heard of anyoe doing that on DD with energy payments.

Loads of people do - it allows them to get the reduced DD prices but not have to build up credit ( like you do ) they just pay each month for what they use.

brewerdave

Snwps said:

There are 2 different direct debits when paying for energy:

Fixed direct debit is where the supplier fixes the amount of DD you pay each month. They calculate/estimate your annual usage then split that over 12 equal monthly instalments. 

Variable direct debit is where the supplier bills you for usage used the previous month and you pay that in full each month so theres no debit/credit rolling over. 

Its the other way around to how you think it is.

Some suppliers operate like that - my own personal experience over the past 10 months or so with BG, is that they have some sort of algorithm which constantly updates some mystical "end of plan " balance resulting in ever changing DD requests. I've paid 6 different DD amounts and they are now "suggesting" another lower amount for November!