Government Energy Discount being added to account balance - not reducing monthly payment 3 January at 3:32PM edited 6 January at 10:57AM in Energy 5 replies 238 views

GriffinSwindon

In Oct 22 my direct debit amount for energy usage was reduced by £67 however, since then the £67 has been added by my energy company to my account balance instead of reducing my DD payment!

Surely the whole point of the HM Government Discount Energy Bills Support Scheme was to give the average family more money to spend on luxuries like food, rather than filling the coffers of large multi-national companies?

With the colder weather, my usage has understandably increased to around £50 a week - approx £225 for a 31 day month and November was the first month that I exceeded my DD. 

I can’t see my family using much more each month than we are doing now and at the current rate, winter is going to be over before my account credit balance reduces to a sensible amount.  

I wonder whether the energy companies are given £67 for each account holder each month or were given £400 at the start of October and left to get on with it?

If my energy company added the £67 to account balances (instead of reducing  DD payments) to say just 1/2 of their 2.2 million customers that would bring in:

5 months x £67 (seeing as they took it off October’s bill) = £333 per customer

£333 x 1,100,000 customers = £366,300,000 

Are any other energy companies adding to the account balance instead of reducing DD payments?

DE_612183

The amount is dealt with differently by different companies.

Mine has reduced my DD by £66 but also each month I get a credit on the account for the £66 as well as the payments I've made - net impact is I pay £66 less per month - which is what the government intended.

What you might find is where you say "the £67 has been added by my energy company to my account balance" - it's actually a CREDIT which reduces the amount outstanding rather than a DEBIT which would increase it.

Can you check you whole statement again - debits and credits to see what's going on - also who is your supplier.

lohr500

In my case, EDF did not adjust the DD.

In October,November and December they show a credit of £66, £66 and £67 on my EDF a/c covering the Govt support.
And in the first week of same months, they have issued refunds of £66, £66 and £67 directly to the bank a/c from where the DD payments are taken.

It's up to you what you do with the Govt. money, but I am saving it away to help soften the blow once the support stops.

My understanding is that the energy companies are receiving the support payments monthly and not as a lump sum up front. 

GriffinSwindon

I checked my statements and the DD has remained at £187 since the October bill and the energy credit has been added to my balance.

My supplier E.ON managed to reduce my DD amount in October by £66/67 but not since then.

I understand that I will get the money at some point but i'm not seeing the benefit at the moment. We checked my mother-in-laws bill (also E.ON) and it's been added to her balance too.

propertyrental

If your account is in credit, or you think your DDs are higher than they need to be, all you need to do is contact the utility company and get your DDs reduced!

Often you can do this online by accessing your account and changing the amount, without even speaking to anyone- but I guess that depends on the company.

GriffinSwindon

Thanks. I'll do that. MSE recommend a buffer of 2 months DD to carry you through the dearest part of the year and my balance is over that amount.