🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

Reduce direct debit or ask for refund

Options
Hi
We are a household relatively use low energy both electricity and gas. 
Electricity is on smart meter and EDF was billing this based on actual reading,
However, Gas is not on a smart meter and I have noticed that EDF is being massively overestimating the gas readings for last 6 months, I have now provided correct reading and using that the recent bill shows we are £1300 in credit.  We pay 220 per month by direct debit. 
My question is what best thing to do? ask for refund or reduce the direct debit or do both
If I dont do anything 6 months from now we would be 2,600 in credit and the next bill would be in the range of 700-800 so will always remain in credit

«1

Comments

  • MattMattMattUK
    Options
    Readyto said:
    Hi
    We are a household relatively use low energy both electricity and gas. 
    Electricity is on smart meter and EDF was billing this based on actual reading,
    However, Gas is not on a smart meter and I have noticed that EDF is being massively overestimating the gas readings for last 6 months, I have now provided correct reading and using that the recent bill shows we are £1300 in credit.  We pay 220 per month by direct debit. 
    My question is what best thing to do? ask for refund or reduce the direct debit or do both
    If I dont do anything 6 months from now we would be 2,600 in credit and the next bill would be in the range of 700-800 so will always remain in credit
    If you are paying in more than you use and you already have a credit then the correct course of action is to do both.
    You can also go on variable/pay in full monthly even without a smart meter. You will need to submit a meter read on or before a certain date every month (otherwise they will estimate), but this may be worth doing if you are happy to accept the seasonal variation in cost.
  • brock_the_badger
    Options
    If you are low users on gas and electric why not ask EDF to go on variable direct debit ?   Your winter bills will be higher than summer but you will only pay every month for what you actually use and no credit build up . Better money in your Bank account and earning interest than being held by EDF . This is the way I pay them for gas .
  • brock_the_badger
    Options
    Forgot to mention , Going on variable DD will automatically trigger a refund of your credit !
  • Readyto
    Options
    thank you both, I will change to variable DD,

    do you know if the unit rates are change or higher for variable DD?
  • brock_the_badger
    Options
    Just the same rates as your monthly DD .
  • frugalmacdugal
    Options
    Hi,
    Readyto said:
    thank you both, I will change to variable DD,

    do you know if the unit rates are change or higher for variable DD?
    have up to date meter readings ready when you contact them.
  • dunstonh
    dunstonh Posts: 116,696 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
     I have noticed that EDF is being massively overestimating the gas readings for last 6 months,
    Or is it more likely that they estimated on a typical autumn/winter and its the fact that 2022 has ended up being very mild and your gas use is much lower than it would normally be?   
    Also, noting that Feb-April are often the coldest months and we are only just in that period (and its mild so far).

    My question is what best thing to do? 
    You make a case using your historic use over the period from now to May and how that shows you have excess credit and can justify a refund of £x

    However, do remember that energy use is around 20% down on a typical year due to the mild weather.   So, whilst a refund may be suitable for this year, a reduction in the monthly payment may not be suitable for next year.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • kurtvonn
    Options
    Hey Brock - how many providers will allow you t switch to variable dd? I thought their game these days was to build up your credit in the warmer months? I'm just coming off a fix with Eon and have 6-7 months of very low gas usage in front of me - how easy would it be for me to get those months on a much lower than the winter months next winter?

  • brock_the_badger
    Options
    As far as I know all bar BG new system and Ovo but could be wrong . I have electric VDD with Eonnext and gas with EDF . Octopus definitely do ! Other posters will no doubt fill in . 
  • pochase
    pochase Posts: 3,449 Forumite
    First Anniversary First Post Name Dropper
    Options
    As far as I know all bar BG new system and Ovo but could be wrong . I have electric VDD with Eonnext and gas with EDF . Octopus definitely do ! Other posters will no doubt fill in . 
    You are not wrong. BG "new" and Ovo are the two suppliers I am aware of that don't allow variable DD.
Meet your Ambassadors

Categories

  • All Categories
  • 8 Election 2024: The MSE Leaders' Debate
  • 343.9K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.2K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards