Energy providers' business model

Qyburn

This rant started off complaining about "providers" then we have "BSPs" and now "PBS". Why not stick to the correct term, Supplier? Use inverted commas if you must.  

MattMattMattUK

Robint said:

Holy Guano Batman

EDF

What is Direct Debit with exact monthly payments?

This is one of the ways to pay for your energy. You might also know this payment option as 'Direct Debit whole amount monthly'.

What is Direct Debit with exact payments and how does it work?

1. You choose to pay by Direct Debit with exact payments and pick an energy plan (tariff).
2. If you give us your meter readings regularly, you'll get a bill each month. The bill will show exactly how much you need to pay for the energy you've used. As you pay by Direct Debit, it will be paid automatically.
3. If you don't give us your meter readings when we ask for them, you'll pay the regular payment amount instead.

This is a well kept secret

AFAIK EDF use Kaluza Billing as well as YKW

I will check this with them directly tomorrow

It is not a well kept secret, it is published on their website, it is mentioned by various people in the media, it comes up a lot on here and in articles on energy, it is well known.

EDF use their own legacy billing platform and are this year beginning a transition to Kracken which they expect to complete in 2024.

Chrysalis

Mstty said:

If this is going to go down the conspiracy wormhole then it really needs nipping in the bud but I will add my 42p

Ofgem are not fit for purpose that is clear. 

I suspect we will lose a couple more small suppliers so SC will go up not down.

I believe the price we pay in April 2023 is likely to be the price we pay come 1st April 2024.(keeping an eye on Cornwall insights) That could well be the new norm and we are being conditioned to that so government intervention can cease then. Which I believe is right that cannot continue.

Energy companies (like so many other sectors such as doctors surgeries) hid behind covid and have not offered consistent customer service since. Did you know up to 20% of the price of your energy is for IT systems/customer service, the cost of looking after the customer. This is the part failing most imo for 20% cut.

Due to the rise in energy prices energy suppliers even with their low 2% profit are making more money with the increased prices and I suggest they are also skimming the customer service portion of the price of energy as well to make back losses in the past year(s)

All of that said I have had a couple of issues with Eon Next, but nothing insurmountable after taking control of knowing what we use and when.and presenting this information to them.Something I suggest a lot of first time posters here go away and do.

Accidentally left it bookmarked, will reply on the conditioning point, I do agree with you here that we are been conditioned to accept the current situation as the new norm.  It wont be sustainable for the poor though so not sure how it will work out, but as you said its likely the government's plan.

The £900 CoL payment as an example is actually £600 for 2023 and then £300 for 2024, even though the BBC keep reporting it as an increased amount of £900 for 2023.

[Deleted User]

Chrysalis said:

Oh boy big can of worms opened.

Interesting to learn that supposedly (not seen an article to confirm it) Octopus were told off for setting DD's too low, yet in my case if  accepted their proposed DD back in spring I would probably be about 3k in credit right now in the middle of winter.

Octopus’ response to Jul 22 Ofgem compliance review: 

https://octopus.energy/press/octopus-energy-statement-on-ofgems-direct-debit-compliance-review/

MattMattMattUK

Chrysalis said:

Mstty said:

If this is going to go down the conspiracy wormhole then it really needs nipping in the bud but I will add my 42p

Ofgem are not fit for purpose that is clear. 

I suspect we will lose a couple more small suppliers so SC will go up not down.

I believe the price we pay in April 2023 is likely to be the price we pay come 1st April 2024.(keeping an eye on Cornwall insights) That could well be the new norm and we are being conditioned to that so government intervention can cease then. Which I believe is right that cannot continue.

Energy companies (like so many other sectors such as doctors surgeries) hid behind covid and have not offered consistent customer service since. Did you know up to 20% of the price of your energy is for IT systems/customer service, the cost of looking after the customer. This is the part failing most imo for 20% cut.

Due to the rise in energy prices energy suppliers even with their low 2% profit are making more money with the increased prices and I suggest they are also skimming the customer service portion of the price of energy as well to make back losses in the past year(s)

All of that said I have had a couple of issues with Eon Next, but nothing insurmountable after taking control of knowing what we use and when.and presenting this information to them.Something I suggest a lot of first time posters here go away and do.

Accidentally left it bookmarked, will reply on the conditioning point, I do agree with you here that we are been conditioned to accept the current situation as the new norm.  It wont be sustainable for the poor though so not sure how it will work out, but as you said its likely the government's plan.

The £900 CoL payment as an example is actually £600 for 2023 and then £300 for 2024, even though the BBC keep reporting it as an increased amount of £900 for 2023.

It is £900 in the 2023-2024 tax year which is how governments work on financial matters. The BBC are not reporting it as all in 2023 wither, their headlines and articles do not say that, the headline from their most read article is "Cost-of-living payments: Three instalments totalling £900 confirmed" with no mention in the article of them all being paid in 2023 and even specifically laying out the payment periods, including the last one being in spring 2024.

Mstty

I fail to see the issue most offer pay in full each month direct debit. If a supplier doesn't just move on as all the deals are the same right now excluding E7.

Direct debit just helps some households plan for the next 12 months and keeps it even out of their pay cheques and they like that. 

All the other stuff is just a load of tosh from the same site that wanted everyone to withhold their direct debits.....nobody did.

EssexHebridean

Would I trust an energy supplier with my life savings? No - any more than I would trust my bank to supply me energy, or come to that my local bin men to provide me with home insurance. Horses for courses.

As keeps being pointed out - near incoherent ranting does nothing to improve the credibility of your standpoint. If you would like to explain in simple terms and without any spin the issue you claim you are having with your supplier - sticking to fact rather than hyperbole - then someone may well be able to offer you with help. If not then I suspect your clear personal axe grinding is going to get you reported to the forum team before all that long.

And PLEASE stop suggesting to people that it would be in any way savvy to copy your apparent example of cancelling DD’s for their energy. We are in the middle of a cost of living crisis and you are urging people to do something that in the vast majority of cases with increase their costs significantly - mostly without pointing out this glaring flaw in your plan. 

Marvel1

May as well throw in my thoughts from what I have read on here and starting to really cheese me off.

I'm on a pre-payment meter so paying higher for standing charges - to cover the lowest paying method Direct Debit customers from companies who have gone bust and were in credit, to go to another company to pay cheaper standing charges again.

I'm sorry but fixed Direct Debit should be the highest standing charges to cover these credits not pre-payment or quartely - who pay what I/they are using.