British Gas "New" Billing System does not include variable direct debit 27 January at 2:37PM in Energy 19 replies 769 views

wrf12345

Just complained to BG because the agent would not switch me to variable direct debit when the new std tariff begins next month. The answer was that the new billing system does not allow variable direct debit - new as in almost a year old as I am already on it. To be fair, a condition of signing up was that I would pay by fixed direct debit - it was a low standing charge tariff for a year that has worked out really well for me - but I assumed that it would be changeable once the tariff ended.  The variable direct debit is available on their old billing system and there might be a way of getting on to it if I "changed supplier" - BG to, er, BG but there was no way of doing it via an agent! They also suggested that I could simply cancel the direct debit, which would automatically switch me to paying on demand but did not mention whether the cost would increase, which with most companies it does. Feels like they are not making enough dosh out of me and want me to switch to a new company...

Gerry1

Dozy Ofgem should mandate that all suppliers should offer Monthly Variable Direct Debit.

wrf12345

Be interesting to see what excuses Ofgem come out with for not lowering the s/c back to the old rate (£100-ish less) on electricity after they increased it for a year to get the money back for co's taking on displaced customers at a loss.

The only time Ofgem or the govn would react in customers interests is if there was a nationwide cancelling of DD's and possibly then all they would do is get the govn to extend their powers to take money directly off people for the energy co's.

Dolor

My local garage has a sign ‘American Express Cards - no longer accepted’. I must either use a different card or go elsewhere. Energy suppliers are no different in this respect to any other company.

That said, I suspect that any policy change is down to the pressure Ofgem is putting on suppliers to avoid consumers going into debt.

pochase

wrf12345 said:

Be interesting to see what excuses Ofgem come out with for not lowering the s/c back to the old rate (£100-ish less) on electricity after they increased it for a year to get the money back for co's taking on displaced customers at a loss.

Won't happen, don't forget about several billion cost from Bulb that need to be recovered now.

DullGreyGuy

Gerry1 said:

Dozy Ofgem should mandate that all suppliers should offer Monthly Variable Direct Debit.

Why should they?

Should they also mandate they accept UnionPay, Diners Club and AmEx credit cards too?

Allowing differentiation is what drives improvement

jrawle

DullGreyGuy said:

Gerry1 said:

Dozy Ofgem should mandate that all suppliers should offer Monthly Variable Direct Debit.

Why should they?

Should they also mandate they accept UnionPay, Diners Club and AmEx credit cards too?

Allowing differentiation is what drives improvement

Perhaps because Ofgem sets a price cap that suppliers can not exceed, but which allows non-direct debit payers to be charged more. There is no analogy with any other industry as nowhere else are prices set in this way, and nowhere else does the state effectively sanction charging people more if they do not pay by direct debit.

Were it truly a free market with private suppliers charging what they want, I would agree with the people above who say companies should be free to accept whatever payment methods they choose. But it isn't.

MattMattMattUK

jrawle said:

DullGreyGuy said:

Gerry1 said:

Dozy Ofgem should mandate that all suppliers should offer Monthly Variable Direct Debit.

Why should they?

Should they also mandate they accept UnionPay, Diners Club and AmEx credit cards too?

Allowing differentiation is what drives improvement

Perhaps because Ofgem sets a price cap that suppliers can not exceed, but which allows non-direct debit payers to be charged more. There is no analogy with any other industry as nowhere else are prices set in this way, and nowhere else does the state effectively sanction charging people more if they do not pay by direct debit.

Were it truly a free market with private suppliers charging what they want, I would agree with the people above who say companies should be free to accept whatever payment methods they choose. But it isn't.

There are no free markets in the UK, everything is regulated to a greater or lesser extent.

Ofgem should not mandate suppliers offering monthly Direct Debit, they already meddle too much in the payments side of things.

Dolor

jrawle said:

DullGreyGuy said:

Gerry1 said:

Dozy Ofgem should mandate that all suppliers should offer Monthly Variable Direct Debit.

Why should they?

Should they also mandate they accept UnionPay, Diners Club and AmEx credit cards too?

Allowing differentiation is what drives improvement

Perhaps because Ofgem sets a price cap that suppliers can not exceed, but which allows non-direct debit payers to be charged more. There is no analogy with any other industry as nowhere else are prices set in this way, and nowhere else does the state effectively sanction charging people more if they do not pay by direct debit.

Were it truly a free market with private suppliers charging what they want, I would agree with the people above who say companies should be free to accept whatever payment methods they choose. But it isn't.

This forum is littered with complaints from posters that they cannot afford the DD amounts that suppliers are setting. Often the advice offered by forum contributors is for consumers to pay using a variable DD payment as if this offered some magic way of getting around high energy prices. Also we need to bear in mind that Ministers are now putting pressure on suppliers not to switch consumers in debt to prepayment meters. Ministers will no doubt claim that they are helping consumers when, in truth, they are just kicking the proverbial debt can down the road.

Energy suppliers are first and foremost trading companies that need to make a profit to survive. Bad debt ends up as a business cost. If a supplier with the backing of Shell is looking to leave the supply market then things are really tough out there. How many new suppliers have entered the market in the last 12 months? 

If consumers are unhappy with the payment methods on offer, then they should ‘ditch and switch’. There are suppliers out there that will take on new customers on variable direct debit payments.

wrf12345

Seems some companies are allowing switches online again so I will do that once I have all the govn free money in my account and had any credit moved back to my bank acc. 

BTW the cost of moving Bulb customers is not the same as before as they are not getting charged rates that result in a loss for the new company so the only reason for not reducing the s/c is greed.

GingerTim

wrf12345 said:

Seems some companies are allowing switches online again so I will do that once I have all the govn free money in my account and had any credit moved back to my bank acc. 

BTW the cost of moving Bulb customers is not the same as before as they are not getting charged rates that result in a loss for the new company so the only reason for not reducing the s/c is greed.

Companies don't get to keep the standing charge they collect.