Energy co. keeping my huge credit balance as 'emergency buffer' i.e. 0% savings for rainy day!

yakamalayo

I'm paying bills for 3 properties from Bulb. Across the three, a credit had built up of JUST OVER £1700! (£574, £499.90 & £633.64). I then received emails saying that my DD was increasing for two of the properties, despite the huge credit balance, and the fact that my bills (albeit it's not yet the depths of winter) are still lower than my monthly payments AND I'm getting the extra £66/mth paid in.

The agent told me that the credit balance is NOT used to cover winter usage (i.e. pay the same across the year, building up a credit during the summer to cover the higher winter usage). He said I still have to pay enough each month to cover my actual usage, and the credit balance is just a buffer in case I lose my job or can't pay or whatever, i.e. an emergency fund.

Surely this can't be true???!!!

The whole  point of paying a standard monthly amount (I thought) is to spread the cost of ups and downs over the year.

If Bulb's agent is correct, then actually its more like they are providing a zero interest emergency savings account without telling me!!!

I do have some other savings so I absolutely do not need them to force a 0% interest buffer on me.

It is also not in line with what Martin said they agreed at the MSE energy summit last month. I'm confused (and horrified).

Anyone else come across this?

[Deleted User]

CS are trying to fob you off. Suppliers should take any credit/debit balance into account when assessing your DD payment. Most suppliers work to 6 monthly reviews.

FWiW, have you actually calculated a reasonable monthly DD based on your annual usage in kWh/year. Bear in mind that the EPG ends on the 31st March 23.

PS. I know that people think that ML is a saint but anything that he agrees with suppliers is not worth anything unless Ofgem falls inline. Suppliers only have to comply with their Licence Conditions.