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Been overpaying DD and now £606 in credit for G&E - do I keep building up?
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How much ahead does that credit put you in comparison with your actual use? And am I correct in reading things that you are planning for the credit to take account of the price you will be paying next winter when your fix ends? Ie - getting ahead of the curve?What I will say is that allowing you have a year before you will see those escalating rates, you’d do better stashing your reserved cash in an account which pays interest. You could get a 1 year fix for your £600 right now paying 4.35%, and the best easy access to feed anything more you can stash away would give you 2.5%… that interest would pay for a few more kWh when the time comes.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Wouldn't 4.35 only net me £20-30 or so?EssexHebridean said:What I will say is that allowing you have a year before you will see those escalating rates, you’d do better stashing your reserved cash in an account which pays interest. You could get a 1 year fix for your £600 right now paying 4.35%, and the best easy access to feed anything more you can stash away would give you 2.5%… that interest would pay for a few more kWh when the time comes.0 -
Well I’ve got roughly £1000 in credit with E.ON, but as EH points out, that doesn’t tell you anything without knowing my DD, usage and prices.0
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How much are you getting in interest with your energy supplier? 😉£20 = over two months gas standing charge, or 57kWh of electricity at the current EPG rate, or 180+ kWh of gas at current EPG rates - that would heat your home for how many days?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
Interestingly, this is one of the things that was talked about being banned - interest from your supplier (which very few got anyway) was blamed for people keeping excessive credit balances.EssexHebridean said:How must are you getting in interest with your energy supplier? 😉0 -
Small benefit when compared to the cost of utilities. But, savings all add up...Andaah said:
Wouldn't 4.35 only net me £20-30 or so?EssexHebridean said:What I will say is that allowing you have a year before you will see those escalating rates, you’d do better stashing your reserved cash in an account which pays interest. You could get a 1 year fix for your £600 right now paying 4.35%, and the best easy access to feed anything more you can stash away would give you 2.5%… that interest would pay for a few more kWh when the time comes.
However, I also have a good fixed rated which ends next September. With the government grant, it looks like I'll have around £600 credit at the end of the contract. My current cost of about £120/month is going to rocket up, so I'm leaving things as they are, to cushion the blow a bit.
Already reducing usage where possible without too much discomfort, to help lessen the shock.
I’m a Forum Ambassador and I support the Forum Team on the In My Home MoneySaving, Energy and Techie Stuff boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.
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Deleted_User said:
Interestingly, this is one of the things that was talked about being banned - interest from your supplier (which very few got anyway) was blamed for people keeping excessive credit balances.EssexHebridean said:How must are you getting in interest with your energy supplier? 😉... and in at least one case was prompting people to hand over thousands in transactions unrelated to their energy needs, to provide short term funding, while relying on the rest of the public to carry the can for the risk as the balances were still covered by Ofgem at our expense...This really should be banned, or at the very least heavily controlled to prevent a repeat of prior abuse of the system...
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i agree with some of the other comments that you need to look at your usage and think about what cusion you would like to have come april for any surprising bill rises.
some estemated prices have been floating around of about 43p for electric and 14p for gas (really finger in the air at this point to be confirmed in feb). our aim is in feb we want to have about 3 months use at today's price as credit so can take a couple of months to fiddle with the budget (we are also expecting to find out our new council tax in march and maybe water bill will be going up and paying off any christmas credit card spends!) before we have to up our dd by the difference.Almost everything will work again if you unplug it for a few minutes, including you. Anne Lamott
It's amazing how those with a can-do attitude and willingness to 'pitch in and work' get all the luck, isn't it?
Please consider buying some pet food and giving it to your local food bank collection or animal charity. Animals aren't to blame for the cost of living crisis.0 -
how does having a credit balance help with an increase in the tariff in a year? It's not like you are getting Dec 2023 energy paid for at today's rate. the only thing it does is mean you don't need to pay so much each month in a year's time.
Frankly I'd be asking for money back. Maybe you can't get much interest on a savings account but if it keeps you from maxing on a credit card and paying 25% on a balance that is a definite win.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
Check your state pension on: Check your State Pension forecast - GOV.UK
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
⭐️🏅😇🏅🏅🏅🏅🏅0 -
OP is fixed until next November, so April's price increase won't have an immediate effect.
I’m a Forum Ambassador and I support the Forum Team on the In My Home MoneySaving, Energy and Techie Stuff boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.
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