Direct Debits

jfw54

I pay by fixed monthly direct debit for my gas and electric bill. If I pay monthly (by direct debit) on receipt of the bill (variable) would I still be entitled to the “direct debit” discount?

Brie

You should be able to still have a good tariff, certainly cheaper than if you paid by standing order or similar.  Best that you ask your provider - I asked mine (Eon) and they said it would be the same tariff.

Astria

jfw54 said:

I pay by fixed monthly direct debit for my gas and electric bill. If I pay monthly (by direct debit) on receipt of the bill (variable) would I still be entitled to the “direct debit” discount?

Yes, but you will also have to agree to a "standard" DD just in case they don't receive a meter reading from you/the meter.

So it's slightly different to "pay on receipt of bill", but still very similar.

pseudodox

I recently moved to EDF.  They accepted me for Whole Bill Monthly DD, but have set a monthly Fixed DD amount in case I don't supply readings (I am not yet on smart meters).  Not a problem at all.  In fact since I joined them in November I haven't paid them a penny as the EBSS payments have taken care of usage to date.  See this post from another thread today

pseudodox said:

Well as regards my Whole Bill DD to EDF due to go out today (referred to earlier)  they have not taken it.  Instead they have applied the January £67 so that my account is now in credit to the tune of about £23.  By the time I get the next bill (I am due to send readings by 30 January) for payment date in early Feb I will perhaps have the February £67, which could reduce the bill very nicely.  This is so much easier than the £67 coming back to me only to return to sender as part of a bill payment.  My account position could not be clearer (to me anyway). 

Had I stayed with SSE/OVO by now they would have relieved me of over £650 against usage to date of less than £250.  Since I joined EDF in mid November nothing has gone out of my bank to them & my accumulated money for accumulated usage is sitting in a savings account earning very modest interest.  May only be about £1.40p by end of January so far - but pennies for me to spend on sweeties!

Zopa_Trooper

I also recently switched to a pay what I owe direct debit. In August I was paying a fixed rate of £102. EDF said it needed to rise to £122, despite me being in credit. While arguing the toss the guy mentioned I could set the DD to variable and pay just what I owe. I didn't get a bill in September or October and my bill this month is £43. As I see it, the money is better in my account than theirs. Sure I'll get bigger bills through the winter but I am already £322 up so am not concerned. It will I believe make me more energy conscious too, rather than not noticing what is happening each month by paying the same amount. Very glad I did it. 

judy7007

I have always paid BG by variable direct debit each quarter and therefore paid what I owe in full.  I have been looking at my online account and the tariffs being offered by BG  and see that I will pay less if I switch to the monthly set amount direct debit which I have been trying to avoid.  I am considering switching to Octopus energy and see that indeed they do offer a variable direct debit but quite openly say you will pay more to pay this way.  So it seems that to save on electricity and gas bills overall the best way is the dreaded (for me) monthly dd.

pseudodox

Whether you pay by variable DD or fixed DD you will pay exactly the same tariff for the energy you actually consume over a year.  I don't understand where you are seeing that you will pay LESS overall if you change to FDD, whichever company you are with.  I am with EDF, pay in full each month (MVDD) and know exactly where I am up to and EDF have the assurance that I will never be requesting refunds due to overpaying on FDD.  Every penny they take from me they get to keep.

I do find the MVDD makes me very aware of exactly what I am using each month, rather than a fixed amount which does not in any one month relate to usage in that month.

Spoonie_Turtle

pseudodox said:

Whether you pay by variable DD or fixed DD you will pay exactly the same tariff for the energy you actually consume over a year.  I don't understand where you are seeing that you will pay LESS overall if you change to FDD, whichever company you are with. 

Because paying quarterly on receipt of bill as they are currently doing is more expensive and thus the tariff is 7-10% more expensive than the DD version of the tariff.

judy7007 said:

I have always paid BG by variable direct debit each quarter and therefore paid what I owe in full.  I have been looking at my online account and the tariffs being offered by BG  and see that I will pay less if I switch to the monthly set amount direct debit which I have been trying to avoid.  I am considering switching to Octopus energy and see that indeed they do offer a variable direct debit but quite openly say you will pay more to pay this way.  So it seems that to save on electricity and gas bills overall the best way is the dreaded (for me) monthly dd.

That's incorrect.  Paying by variable DD will get you the DD discount and you'll only pay for what you use each month, best of both worlds.

pseudodox

Because paying quarterly on receipt of bill as they are currently doing is more expensive and thus the tariff is 7-10% more expensive than the DD version of the tariff.

Confusion?  I thought the OP meant they were paying VDD, albeit quarterly.

Spoonie_Turtle

pseudodox said:

Confusion?  I thought the OP meant they were paying VDD, albeit quarterly.

Huh, yes I see now they did say that.  I have not heard of that being offered by any supplier though.  Always happy to be corrected but right now I wonder if they pay by quarterly bill online and have confused that for Direct Debit.

pseudodox

Actually I said OP, when I was responding to @judy7007.  Brain f**t!  We do need clarity . . .