MSE News: Energy price rises for some in January, worse for those on prepay and in receipt of bills

MSE_Andrew

The new level of the energy price guarantee from January has now been confirmed. While there’s little change for most on direct debit, those paying via other mechanisms may pay more. Martin Lewis has written to the Department for Business, Energy and Industrial Strategy, especially over the increase for many of the nation's poorest. 

Read the full story here:

'Energy price rises for some in January, worse for those on prepay and in receipt of bills'

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[Deleted User]

Is this any different from the already pinned thread from slightly before the announcement that we are discussing the same things on?

https://forums.moneysavingexpert.com/discussion/6405848/mse-news-energy-price-cap-to-rise-in-january-your-energy-rates-could-change-slightly

Minky17

I thought I read somewhere yesterday that Martin said you will end up paying more if you pay by variable direct debit (as in paying for what you use by direct debit as opposed to fixed payments spread across the year).  Is this correct or did I misunderstand the pay on receipt reference? I am new to this forum, so apologies if I have posted this in the wrong place!

[Deleted User]

Minky17 said:

I thought I read somewhere yesterday that Martin said you will end up paying more if you pay by variable direct debit (as in paying for what you use by direct debit as opposed to fixed payments spread across the year).  Is this correct or did I misunderstand the pay on receipt reference? I am new to this forum, so apologies if I have posted this in the wrong place!

A misunderstanding.

Pay on receipt of bill is the formal name for paying by cash/cheque/debit card etc. (also known as 'Standard Credit').

Variable direct debit is the same as fixed direct debit. (also known as 'other payment method' for some reason).  If there is a supplier who tries to say otherwise, and I wouldn't be surprised if they did, then someone needs to have strong words with them.

notdedyet

Ref Minky17 and SparkyGrad
For what it's worth, a month ago I online chatted to British Gas (my current supplier) and asked whether they offer variable direct debit, either monthly or quarterly. Yes, they do (and wanted to sign me up there and then). I then asked them to confirm that either variable direct debit method would attract the fixed direct debit price. NO came the answer, anything other than fixed direct debit will be treated as "standard" payment, same as paying be cash/cheque/debit card.
So direct debit is not direct debit when it's variable.........
Subsequently I approached Ovo and asked the same question - they don't offer variable direct debit at all,  "but some suppliers do".
Does anyone know whether any of the suppliers offer variable direct debit (monthly or quarterly) where the price is the same as for fixed direct debit?

[Deleted User]

I'm with EDF and pay the same rate for whole amount direct debit monthly that I paid when I was on a fixed monthly direct debit amount.

[Deleted User]

notdedyet said:

NO came the answer, anything other than fixed direct debit will be treated as "standard" payment, same as paying be cash/cheque/debit card.
So direct debit is not direct debit when it's variable.........

They're wrong.  They don't have to offer variable DD, but if they do then it should be at the same price as fixed DD.

OFGEM have directly said this and the Ombudsman would support them.

Gerry1

notdedyet said:

Ref Minky17 and SparkyGrad
For what it's worth, a month ago I online chatted to British Gas (my current supplier) and asked whether they offer variable direct debit, either monthly or quarterly. Yes, they do (and wanted to sign me up there and then). I then asked them to confirm that either variable direct debit method would attract the fixed direct debit price. NO came the answer, anything other than fixed direct debit will be treated as "standard" payment, same as paying be cash/cheque/debit card.
So direct debit is not direct debit when it's variable.........

The agent needs retraining.  BG do offer MVDD and the rates are exactly the same as for MFDD.

OrwellianBabe

I pay by monthly standing order and I'm with OVO.  I challenged the price increase with my supplier who stated that paying by monthly standing order is riskier (for them?) and involves some degree of manual intervention hence why I'm being charged more.  Sounds like a load of petty excuses to me.  Paying by monthly standing order is surely almost as good as a DD, they get my money upfront every month so why am I being unfairly penalised?  Martin Lewis definitely needs to take up the cudgels on this one - those who would like to remain in control of their household finances should not be unfairly punished by greedy energy companies.  We pay our bills on time and in full - punish those who don't!

EssexHebridean

Nope -  because with DD the suppliers make the instruction to take the money, and unless the account holder has cancelled the DD, the money will be paid - sometimes even if there are insufficient funds in the bank account. In the case of standing order it is exactly like a bank transfer - instructed by the customer that requires manual direction from the supplier to then send it to your energy account. That manual intervention costs money, so if that is your choice of payment method then you accept that your choices sometimes carry a cost to you. 

By the way - the “greedy energy companies” when referring to suppliers that are currently limited to 2% profit - and in some cases making less than that - seems to be rather ignoring the facts! 

wild666

There's being no change in my gas prices but a 0.37p decrease in the electric price, that's really going to help, not!