Martin Lewis: Energy bill credit – how much is too much? Stop the rip-off and get back £100s...

MSE_Eesha

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Martin Lewis: Energy bill credit – how much is too much? Stop the rip-off and get back £100s, by understanding the monthly direct debit energy cycle …

Please click 'post reply' to discuss below.

Paul989

I am £500 in credit with EDF. Asked them to reduce my direct debit as I am massively in credit. They just keep saying no.

moggs119

It's your Direct Debit, so you can adjust by informing your Bank. Make your reduction reasonable so then no comeback from Supplier.

mrarnul

I just looked into this and claiming a refund will increase my monthly payments!

del3210

i'm £500 in credit but my n my bills it says i use £2653 per yer i pay £210 per month and they are wanting to reduce my direct debit to £167 but if you divide the £2653 by 12 i should be paying £221. i'm thinking that they are using the credit to reduce the direct debit but if they do that then i will then have to increase my direct debit to £221 later on.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/80027937#Comment_80027937

With EDF it depends where you are in the billing cycle. As they only bill every six months it is not unusual to be in credit for most of the year as there will be the monthly Direct Debit amount in the account with no costs against it. When was your last bill generated?

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/80027962#Comment_80027962

One cannot, the only action you can take with the bank is to cancel the Direct Debit, which would result in an increase in energy costs of 8-9%.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/80028063#Comment_80028063

The basis of the calculation is that the combination of any credit, plus the combination of the monthly Direct Debits will cover the annual usage. The Direct Debit is calculated as 1/12 of the estimated annual usage, less any credit, or plus any debt, if you reduced the credit then the monthly Direct Debit will need to increase proportionately.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/80028792#Comment_80028792

The £500 credit divided by twelve is £41.66, £167 pcm payments plus 1/12 of the credit works out at £209 pcm, which is why they have proportionately reduced the monthly payment, but it has the same effect.

IW74

Looking for a bit of advice. I'm with British Gas, currently paying £92 a month. They've emailed me suggesting I increase it to around £145 a month, but I'm currently £288 in credit, and my usage is fairly low (approx £75 combined for April, £120 for March, £100 for Feb, £120 for Jan).

The email refers to "plan end" but as I'm on their Standard Variable tariff, I have no idea what they're basing this end date on.

I tried requesting a refund, but it tells me I'll need the credit to cover the winter months. I also tried asking about this on Live Chat, but the agent couldn't understand what I was asking, and just kept repeating that they haven't actually changed my direct debit.

Next review is 1st July - should I:

1 - Call them now, and ask for a refund of the £288

2 - Leave the direct debit at £92 and leave the credit

If I leave the direct debit at £92, will they then change it themselves on 1st July?

Thanks,

Ian

Daxineenas

I am with EDF and have just reached the end of my yearly cycle with them (I was transferred following the collapse of my original supplier).  I was paying £85 per month and they have refunded just shy of £400.  However, they then notified me that they were putting up my DD to £115 per month!  I have refused this increase and my DD will remain at £85, which I still think is too high.  I just don't get the logic of the increase.