Standing Charges and Prepayment meters

Gerry1

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

If dozy Ofgem were any good, they'd prohibit PAYG rates being more expensive than the DD rates.

Any additional running costs must be negligible with modern meters.  The supplier also benefits by (i) receiving payment before the energy is used, (ii) customers not able to build up debt by submitting low meter readings and (iii) customers not quitting the premises without paying the final bill.

The point about being paid before energy is used is largely irrelevant as most people paying via Direct Debit have a credit balance and it is not really a factor in their cost.

They wouldn't if Ofgem were any good !

That is not really the solution, you do not make life more difficult for the majority because a minority cannot use the existing system correctly. 

It would certainly make life very difficult for Ponzi companies but much easier for customers who could put their money into a savings account and collect the interest.  They could still choose to have Fixed MDD if they'd rather see their interest going into their energy company's coffers.

MattMattMattUK

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

If dozy Ofgem were any good, they'd prohibit PAYG rates being more expensive than the DD rates.

Any additional running costs must be negligible with modern meters.  The supplier also benefits by (i) receiving payment before the energy is used, (ii) customers not able to build up debt by submitting low meter readings and (iii) customers not quitting the premises without paying the final bill.

The point about being paid before energy is used is largely irrelevant as most people paying via Direct Debit have a credit balance and it is not really a factor in their cost.

They wouldn't if Ofgem were any good !

That is not really the solution, you do not make life more difficult for the majority because a minority cannot use the existing system correctly. 

It would certainly make life very difficult for Ponzi companies but much easier for customers who could put their money into a savings account and collect the interest.  They could still choose to have Fixed MDD if they'd rather see their interest going into their energy company's coffers.

The interest in the few hundred pounds one might have in credit with an energy company is irrelevant to the individual and also if you account for the cost of finance, even for the bigger companies, would push up the cost of energy further for everyone. 

Gerry1

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

If dozy Ofgem were any good, they'd prohibit PAYG rates being more expensive than the DD rates.

Any additional running costs must be negligible with modern meters.  The supplier also benefits by (i) receiving payment before the energy is used, (ii) customers not able to build up debt by submitting low meter readings and (iii) customers not quitting the premises without paying the final bill.

The point about being paid before energy is used is largely irrelevant as most people paying via Direct Debit have a credit balance and it is not really a factor in their cost.

They wouldn't if Ofgem were any good !

That is not really the solution, you do not make life more difficult for the majority because a minority cannot use the existing system correctly. 

It would certainly make life very difficult for Ponzi companies but much easier for customers who could put their money into a savings account and collect the interest.  They could still choose to have Fixed MDD if they'd rather see their interest going into their energy company's coffers.

The interest in the few hundred pounds one might have in credit with an energy company is irrelevant to the individual

Not all individuals are likely to be as well heeled as your good self.  £30 p.a. (£1000 at 3%) may not be much to you but many who are having to choose between heating and eating would be grateful for it.

pochase

Even if somebody is in credit by £1000 for some time, nobody will have a credit of £1000 for the whole year, so there is no £30  interest, it is more likely in the region of £10 to £15. 

MattMattMattUK

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

If dozy Ofgem were any good, they'd prohibit PAYG rates being more expensive than the DD rates.

Any additional running costs must be negligible with modern meters.  The supplier also benefits by (i) receiving payment before the energy is used, (ii) customers not able to build up debt by submitting low meter readings and (iii) customers not quitting the premises without paying the final bill.

The point about being paid before energy is used is largely irrelevant as most people paying via Direct Debit have a credit balance and it is not really a factor in their cost.

They wouldn't if Ofgem were any good !

That is not really the solution, you do not make life more difficult for the majority because a minority cannot use the existing system correctly. 

It would certainly make life very difficult for Ponzi companies but much easier for customers who could put their money into a savings account and collect the interest.  They could still choose to have Fixed MDD if they'd rather see their interest going into their energy company's coffers.

The interest in the few hundred pounds one might have in credit with an energy company is irrelevant to the individual

Not all individuals are likely to be as well heeled as your good self.  £30 p.a. (£1000 at 3%) may not be much to you but many who are having to choose between heating and eating would be grateful for it.

I am hardly wealthy. Very few people are going to be carrying a thousand pound credit at any point, especially those on lower incomes and let alone for a whole year, plus even now getting 3% is not going to happen easily. 

EssexHebridean

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

If dozy Ofgem were any good, they'd prohibit PAYG rates being more expensive than the DD rates.

Any additional running costs must be negligible with modern meters.  The supplier also benefits by (i) receiving payment before the energy is used, (ii) customers not able to build up debt by submitting low meter readings and (iii) customers not quitting the premises without paying the final bill.

The point about being paid before energy is used is largely irrelevant as most people paying via Direct Debit have a credit balance and it is not really a factor in their cost.

They wouldn't if Ofgem were any good !

That is not really the solution, you do not make life more difficult for the majority because a minority cannot use the existing system correctly. 

It would certainly make life very difficult for Ponzi companies but much easier for customers who could put their money into a savings account and collect the interest.  They could still choose to have Fixed MDD if they'd rather see their interest going into their energy company's coffers.

The interest in the few hundred pounds one might have in credit with an energy company is irrelevant to the individual

Not all individuals are likely to be as well heeled as your good self.  £30 p.a. (£1000 at 3%) may not be much to you but many who are having to choose between heating and eating would be grateful for it.

In fairness, those people are also very unlikely to be in a position to amass that sum in a savings account either. 

The idea of variable DD being the standard is interesting - but I have to say I can’t see it being a viable option until the art of budgeting is better taught in schools. Currently too many people simply don’t have the grasp they would need on their household finances to allow it to work - we see this regularly on DFW. As an example you would be an amazed the number of people who although they know in theory about the two “spare” months on council tax (February and March) are entirely at a loss when you ask them where that money goes. It simply gets absorbed and, because it’s never allocated elsewhere, for example to savings, it gets frittered. When it comes down to it, someone making the choice between heating and eating will have an even tougher choice in December, January and February when “through the roof” bills will simply not be even close to affordable. 

Spoonie_Turtle

I'm fairly certain the fixed DD must have been to help budgeting - if your costs vary across the months but your income doesn't, a lot of people are going to find it hard to adapt across the year and put the right amount of extra money away.  The ones who may struggle most are those having to budget down to the last £1, because unless you have exemplary self-control that feeling of a little breathing space in the summer is extremely difficult to resist, especially when summer is the time people tend to feel energised and motivated and want to do things.  It can tend to be easier in some ways to curb spending outside the home in winter when you don't feel like going anywhere or doing anything.

diystarter7

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

MattMattMattUK said:

Gerry1 said:

If dozy Ofgem were any good, they'd prohibit PAYG rates being more expensive than the DD rates.

Any additional running costs must be negligible with modern meters.  The supplier also benefits by (i) receiving payment before the energy is used, (ii) customers not able to build up debt by submitting low meter readings and (iii) customers not quitting the premises without paying the final bill.

The point about being paid before energy is used is largely irrelevant as most people paying via Direct Debit have a credit balance and it is not really a factor in their cost.

They wouldn't if Ofgem were any good !

That is not really the solution, you do not make life more difficult for the majority because a minority cannot use the existing system correctly. 

It would certainly make life very difficult for Ponzi companies but much easier for customers who could put their money into a savings account and collect the interest.  They could still choose to have Fixed MDD if they'd rather see their interest going into their energy company's coffers.

The interest in the few hundred pounds one might have in credit with an energy company is irrelevant to the individual

Not all individuals are likely to be as well heeled as your good self.  £30 p.a. (£1000 at 3%) may not be much to you but many who are having to choose between heating and eating would be grateful for it.

Hi

I doubt many are are carryig that much credit and if they are, then they must be like me, getting naff all from our current account but never had less than 20k in our joint current account as we both just feel comy with it but aware we could easily lock away in fixed rates at close to 4% - we are what we are.

However, we do  worry re haeting costs etc but luck to afford it - always worried re money and that has done us well.

Like I said, anyone with close to 1k in credit with the utilities suppleirs  wont be  worrying anything about 1/3%.

thanks

wild666

The SC's on prepayment meters are dearer but the unit rates are cheaper in many cases. If the user uses the average usage then they are likely to pay no more than someone on credit meters. If they are low users then it could work out dearer due to the SC's being about 10p or more than those using credit meters.

wild666

 diystarter7 said:

Ak yourselves this, why are people that are given no option other than a pre-pay meter complain.

When I moved into my flat the meters were prepayment meters with two different company's I quickly changed them to BG and got credit meters installed, all they did was run a credit check taking just seconds to confirm I could have them installed as I had credit meters with BG at the last property I was in.