Energy how do they justify your DD increase

Gerry1

Spoonie_Turtle said:

Gerry1 said:

Dolor said:

deano2099 said:

They do indeed. And it's pretty fascinating that Tesco do a far better job with their Christmas saver scheme than energy companies do.
The money is held in a trust separate from Tesco itself, and you can get it back at any time until October (just before the "bonus" is paid in) as a pre-paid cash card.
https://www.tesco.com/help/sections/10865630418841-Clubcard-Christmas-Savers

Like you, I'd be all for energy companies adopting this model!

The present DD scheme isn’t perfect but it works for millions of consumers. Given that credit balances are 100% protected, the consumer will not lose out should a supplier fail.

When around 30 companies went bust, all the lost credit balances that had to be refunded totalled £2.6 billion, an amount that had to be reclaimed from all customers having to pay an extra £94 for Ofgem's incompetence... plus another £1.7 billion for Bulb !

Source: Citizens Advice

If only it were that low https://www.reuters.com/world/uk/uk-government-expects-recoup-bulb-energy-bailout-cost-2022-12-12/

Wow... £329 per customer.  Thank you, mega-dozy Ofgem.

Scot_39

MikeJXE said:

The reason they gave I would otherwise be in debt by £700 December 2023

They must think I'm stupid. 

How can they justify this increase ? 

Thank You

There has been a lot of uncertainty re the EPG for instance.

It has in just a few months sprung into life, for 2 years, then for 6 months, and now - at least - gone 6m at £2500 then 12 months at £3000.

Your Dec 23 date - now covers 9 months of that £3000 - so 3/4 of £500 increase - but you appear to be a light user - c 1/3rd cap 2900 E, c 1/2 12000 gas etc - so only explains maybe £150-200 max.

My first bill calculation of annual usage estimate - post EPG in early Oct - appeared to be using my raw tariff rates - not factoring in the 17p discount - and was therefore several £100 higher than the new rate notice from late Sep - just 2 weeks before.

This was corrected by my 2nd bill and calculated using EPG discounted rates. 

Could they simply be using raw tariff to protect themselves in case govt cancels EPG again ?

Many posting here have gotten so frustrated with the way companies do their calculations - they have gone onto variable DD with their supplier - some even cancelled DD and took tariff hit for paying by bill etc.