Neighbours asked me for help with DD change email

MultiFuelBurner

Our neighbours (pensioners) asked me to check that their supplier has got things right as they are suggesting their direct debit for this coming year is increased by £40 a month so £480 for the year.

They have been frugal this year and have smart meters and the bills are actuals not estimates and taking 1st April rates I too come up with £160 per month not the £201.15 the energy supplier is now requesting.

Not withstanding the likelihood prices are going to drop July-December as well is the energy supplier breaking any rules suggesting a DD 25% higher than what is actually required based on the last year's readings.

They are not happy bunnies.

EssexHebridean

OK - so if you've done the sums, and their actual annual use suggests that the supplier is looking to increase the DD unnecessarily, then their next step is that armed with those sums, they should call the supplier and politely explain that it would appear that the planned increase is unreasonable, and that they would like it left at the current amount. The supplier does have a duty to ensure that DDs are reasonable - that is key - but equally it is important to make sure that the workings of the annual use and standing charges are correct. They should also check that the Smart meter is definitely sending readings, and keep an eye on things moving forward to make sure that their use still suits the amount of money they are paying. 

macman

Is the account currently in debit or credit?

Brie

I wouldn't be surprised if they had a debit right now given that it's the end of winter and we're over most of the cold now until the autumn.  That doesn't stop an energy provider from getting a sparkle in their eyes and see money signs.  So of course they ask (aka demand) for more.  But giving them sums should make them back down.  

Well done to you for helping your neighbours out.

MultiFuelBurner

Debit £39 and factored into their next 12 months usage totals and yes smart meters are correct popped round for a cup of tea and a slice of cake. Meters are spot on.

They even have their own spreadsheet but wanted confirmation.

As I said what rules are in place if an energy supplier over estimates a DD by 25% is that OK?

powerful_Rogue

MultiFuelBurner said:

Debit £39 and factored into their next 12 months usage totals and yes smart meters are correct popped round for a cup of tea and a slice of cake. Meters are spot on.

They even have their own spreadsheet but wanted confirmation.

As I said what rules are in place if an energy supplier over estimates a DD by 25% is that OK?

Can't see why it wouldn't be as you just phone them up and get them to reduce it.

Brie

It's not OK and needs to be pointed out to the provider.  In a firm but polite manner.  "I'm afraid you've got your numbers wrong" was one of the lines I used with mine.  The lovely customer service person at Eon confirmed that they had taken the January use (so worst month of the year) multiplied it by 14 (to give me a good safety margin) and then divided by 12 to come up with the month figure.  I politely told them what they should have known - that my yearly use was X - and what they didn't - that the amount was expected to go down significantly as we no longer had a 96 year old living with us having the heat turned all the way up every day of the year.  They agreed to leave the DD as it was previously. 

£39 debt at this point of the year says to me they will be able to ask for a refund in a couple of months!    

sandy700

I know not everyone can do this and not every supplier allows it but since I changed to Sainsbury's Energy variable direct debit  I pay what I use and don't have any credit or debit, well debit from the bill to the DD, the most I have paid in a month has been £225.85 for gas and electricity.

MultiFuelBurner

powerful_Rogue said:

MultiFuelBurner said:

Debit £39 and factored into their next 12 months usage totals and yes smart meters are correct popped round for a cup of tea and a slice of cake. Meters are spot on.

They even have their own spreadsheet but wanted confirmation.

As I said what rules are in place if an energy supplier over estimates a DD by 25% is that OK?

Can't see why it wouldn't be as you just phone them up and get them to reduce it.

Perhaps you need more info. 

They are firstly concerned as they get older they had got their calculations wrong ( they had not)

Secondly they cannot understand why when rates are the highest they have ever seen that the energy supplier wants 25% more each year than they will use.

Thirdly before they confront the energy supplier (which they are happy to do with their calculations) they wanted to know if the energy supplier had broken any rules by overestimating to such a percentage as 25%  is this the norm and most people put up with that.

[Deleted User]

There are no rules as such but Ofgem has been keeping the matter under review:

https://www.ofgem.gov.uk/publications/direct-debit-market-compliance-review-progress-update

MultiFuelBurner

Thanks all for your replies, it has incensed our neighbours when they are on a budget and the supplier has got this so wrong. Made them question their own calculations and make them wonder how many other suppliers are doing this and if this is wrong?

Personally I think it is very wrong and we will see what their supplier says when confronted with the calculations and the direct debit they have calculated.