MSE News: Why energy bills are rising this month despite the postponement of 20% price hikes

MSE_Helen_K

Energy bills are rising for many this month despite the postponement of a 20% planned price increase in April. This is largely due to two reasons; firstly, the Government's £66 or £67 monthly support payments have stopped, and secondly, some suppliers are also reviewing direct debit levels at the same time...

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Why energy bills are rising this month despite the postponement of 20% price hikes

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matt_drummer

MSE_Helen_K said:

 and secondly, some suppliers are also reviewing direct debit levels at the same time...

How does a review of direct debit levels constitute an increase in energy bills?

MattMattMattUK

matt_drummer said:

MSE_Helen_K said:

 and secondly, some suppliers are also reviewing direct debit levels at the same time...

How does a review of direct debit levels constitute an increase in energy bills?

It does not, but as most people do not seem to be able to differentiate between their Direct Debit and their bill, I presume that something similar has happened within the writing of the article. 

MikeyPGT

matt_drummer said:

How does a review of direct debit levels constitute an increase in energy bills?

Possibly because a review upwards of direct debit levels results in an increase in the payment you are being asked to make?

comeandgo

I would not expect anyone not to have already thought out that loosing the £66 government payment is going to mean their bills will increase.  

matt_drummer

MattMattMattUK said:

matt_drummer said:

MSE_Helen_K said:

 and secondly, some suppliers are also reviewing direct debit levels at the same time...

How does a review of direct debit levels constitute an increase in energy bills?

It does not, but as most people do not seem to be able to differentiate between their Direct Debit and their bill, I presume that something similar has happened within the writing of the article. 

I would have thought an MSE expert would know better?

matt_drummer

MikeyPGT said:

matt_drummer said:

How does a review of direct debit levels constitute an increase in energy bills?

Possibly because a review upwards of direct debit levels results in an increase in the payment you are being asked to make?

Yes, it would result in  a higher amount leaving your bank account.

How does a higher direct debit make your bill bigger?

Your bill depends on how much you use and how much you pay per unit.

The amount of the direct debit has absolutely zero influence over the amount of an energy bill.

MWT

MSE_Helen_K said:

Energy bills are rising for many this month despite the postponement of a 20% planned price increase in April. This is largely due to two reasons; firstly, the Government's £66 or £67 monthly support payments have stopped, and secondly, some suppliers are also reviewing direct debit levels at the same time...

Why does MSE perpetuate the false belief that the Direct Debit is the 'bill'...?

This remains very unhelpful and I would have expected better than this from MSE...

MattMattMattUK

matt_drummer said:

MattMattMattUK said:

matt_drummer said:

MSE_Helen_K said:

 and secondly, some suppliers are also reviewing direct debit levels at the same time...

How does a review of direct debit levels constitute an increase in energy bills?

It does not, but as most people do not seem to be able to differentiate between their Direct Debit and their bill, I presume that something similar has happened within the writing of the article. 

I would have thought an MSE expert would know better?

So would I, but...

@MSE_Helen_K Any thoughts? 

TheElectricCow

MikeyPGT said:

matt_drummer said:

How does a review of direct debit levels constitute an increase in energy bills?

Possibly because a review upwards of direct debit levels results in an increase in the payment you are being asked to make?

True, but it would still be a better course of action to correctly differentiate between the two and educate, rather than going along with something that’s wrong and often misunderstood just because it’s easier that way.

The people who think that direct debit = bill (i.e. the apparent target audience of this article) would benefit much more from a well thought out explanation of why that’s inaccurate than being told their bill is going up because the direct debit is being reviewed.

A better understanding of how energy billing actually works, for most people, will go much further to reducing the bill itself than any messing around with a direct debit will.

Missy79

TheElectricCow said:

True, but it would still be a better course of action to correctly differentiate between the two and educate, rather than going along with something that’s wrong and often misunderstood just because it’s easier that way.

Agreed, and it's a problem because people believe the opposite is also true, that a lower direct debit quote at any particular time will equate to a lower bill. People switch based on that (potentially false information) especially from doorstep sellers.