Cash Online Tariff

Grumpyoldgit

So Scottish Power wanted to increase my Direct Debit to £316/month. I told them I couldn’t pay and wanted to pay monthly bills as they came in so I cancelled my DD as advised.

They then send me an email saying I will be charged £5 if they cannot take my DD payment!

I managed to speak to someone who said he could transfer me onto they’re cash monthly tariff, but it’s going to cost me £290 extra a year! The cash tariff is higher, I thought the government had capped what they could charge?

Its ridiculous, I am doing everything I can to reduce my consumption, but they want to increase my costs!

[Deleted User]

Suppliers banking costs are reduced if consumers pay by direct debit. That said,  I am surprised by the £290 difference for paying by cash. I would ask for details of any offer in writing.

Forgive me for asking, but if you cannot pay a £316 per month DD how are you going to be able to pay monthly usage bills which, in Winter, might be a lot more than £316? SP charges for late payments.

BUFF

Grumpyoldgit said:

I managed to speak to someone who said he could transfer me onto they’re cash monthly tariff, but it’s going to cost me £290 extra a year! The cash tariff is higher, I thought the government had capped what they could charge?

Its ridiculous, I am doing everything I can to reduce my consumption, but they want to increase my costs!

They have but there are different caps for different methods of payment.
It costs the suppliers more for non-DD so they are allowed to charge a higher rate than for DD.

[Deleted User]

Hi,

you could ask for a variable DD, pay what you use, and benefit from DD rates.

Spoonie_Turtle

The government cap is for a mythical 'typical' user who pays by Direct Debit.  Tariffs are allowed to be higher for payment methods that cost more.

pochase

£290 sound about right.

12 x £316 = £3792 and 7% of this is £265. 7% is a average, so the £290 seems to be very likely.

As mentioned before, ask for a variable direct debit, that will at least let you keep the discounted DD rates.

Do you have currently a credit with them that would cover the first months and allows you to put the money earmarked for the DD aside for the next bill payments? Big problem I see is that going to variable direct debit or cash payment at this time of the year you would need to have budgeted during the cheaper summer months. If the £316 are anywhere near realistic figures you can expect bills of £600 to £800 in the coldest months.

If you cannot pay the averaged £316 I don't know how you want to pay the bills for the cold months,

ariarnia

frugalmacdugal said:

Hi,

you could ask for a variable DD, pay what you use, and benefit from DD rates.

the op would still have to be able to find the money to pay the actual bill when its due. vs monthly annual dd which spreads out the cost. if cost is the main problem then front loading the cost to the next few months doesn't sound like it would help much tbh. 

BUFF

frugalmacdugal said:

Hi,

you could ask for a variable DD, pay what you use, and benefit from DD rates.

I don't think that SP offer that option.

[Deleted User]

ariarnia said:

frugalmacdugal said:

Hi,

you could ask for a variable DD, pay what you use, and benefit from DD rates.

the op would still have to be able to find the money to pay the actual bill when its due. vs monthly annual dd which spreads out the cost. if cost is the main problem then front loading the cost to the next few months doesn't sound like it would help much tbh. 

Hi,

understand that, but OP seemed to be more concerned about the extra £290 for cash payments.