British Gas not allowing MVDD

MWT

Gerry1 said:

Does anyone know what happens if you're paying by MVDD on the old billing system?

Are you compelled to pay by MFDD, given a derogation or left forever on the old system?

I did take a look at their standard T&C, and they do reserve the right to change the customers payment method, so no obvious escape route that way...

Alnat1

@Gerry1 If you're still on the old system, why not switch now to a supplier who does do MVDD before BG mess up your account for the 3 months or so it seems to take them to transfer an account to the new system. 

Gerry1

@Alnat1 I'm only staying with BG for electricity because they seem unable to install a smart meter if you are on E7.

Their incompetence suits me fine because it means I don't get hassled !

wrf12345

On the other hand, with variable DD you are giving the co free access to take whatever money they want from your bank - do you really trust their systems? I know you can get it back if it all goes wrong but even more hassle. 

Just had smart meters fitted so may switch them to prepayment when the rates change on 1st July to be same as DD but looking at the rates at the moment they are stealing even more s/c money than std - and by definition you can not get into debt on prepayment so it should be less (with remotely switched smart meters). Assuming BG's new system actually allows that.

Gerry1

wrf12345 said:

they are stealing even more s/c money than std

Not s good idea to make potentially libellous comments on a public forum !

wrf12345 said:

- and by definition you can not get into debt on prepayment

Wrong: if you don't top up for a while (e.g. if you don't use any gas in the summer) the accruing standing charges will make your account go into debt.

pseudodox

wrf12345 said:

On the other hand, with variable DD you are giving the co free access to take whatever money they want from your bank - do you really trust their systems? 

EDF do not have free unlimited access to MY bank to take any random amount they like.  I am in control of the payments.  I control the size of my bills by managing the amount of energy I use.  By being on MVDD I submit readings each month.  I get an invoice next day, which is always within a few pence either way of what I am expecting, and 14 days later I see them take the exact DD amount from my bank.  I have ample opportunity to disagree any bill if the readings are not what I submitted and I have 14 days to put a stop on any DD that I feel is way wrong.  I trust this more than giving them unfettered access to take a FDD that is far in excess of any usage and spend my time arguing the toss with them.

If I had agreed to the FDD OVO wanted from me I would have over £800 of MY savings sitting in their bank.  Luckily I ditched and switched to EDF and whilst that money is sitting in my savings account, nominally to pay next winter's higher bills and earning a little bit of interest (surely MSE savvy) it means that this week I have it available to dip into to pay a plumber to fix a leaking toilet.  Would OVO have been willing to pay my repair bill?  "Oh sorry Mr Plumber - I cannot pay you until OVO have agreed to return some of the money they are taking care of for me.  Ah!  So you won't fix my leaky loo if I cannot pay you until the cows come home.  Hmm!"

[Deleted User]

pseudodox said:

wrf12345 said:

On the other hand, with variable DD you are giving the co free access to take whatever money they want from your bank - do you really trust their systems? 

EDF do not have free unlimited access to MY bank to take any random amount they like.  I am in control of the payments.  I control the size of my bills by managing the amount of energy I use.  By being on MVDD I submit readings each month.  I get an invoice next day, which is always within a few pence either way of what I am expecting, and 14 days later I see them take the exact DD amount from my bank.  I have ample opportunity to disagree any bill if the readings are not what I submitted and I have 14 days to put a stop on any DD that I feel is way wrong.  I trust this more than giving them unfettered access to take a FDD that is far in excess of any usage and spend my time arguing the toss with them.

If I had agreed to the FDD OVO wanted from me I would have over £800 of MY savings sitting in their bank.  Luckily I ditched and switched to EDF and whilst that money is sitting in my savings account, nominally to pay next winter's higher bills and earning a little bit of interest (surely MSE savvy) it means that this week I have it available to dip into to pay a plumber to fix a leaking toilet.  Would OVO have been willing to pay my repair bill?  "Oh sorry Mr Plumber - I cannot pay you until OVO have agreed to return some of the money they are taking care of for me.  Ah!  So you won't fix my leaky loo if I cannot pay you until the cows come home.  Hmm!"

One of the reasons why Ofgem didn’t make it mandatory for energy suppliers to ring-fence consumer credits is because they accepted the argument that it would result in an increase in borrowing which, in turn, would result in higher prices.

As it is the norm for suppliers to pay their wholesalers in advance of supply, I do not think it unreasonable for suppliers to ask for some payment in advance. The greater the number of consumers that elect to ‘pay on presentation of a bill’ the higher the supplier’s borrowing costs will be. All businesses need cash flow to survive.

MSE_James

FiestaRed said:

Not sure if Martin or any of his staff read these posts but as a British Gas customer on their 'New Platform' I am not allowed to pay for my energy by Monthly Variable Direct Debit while those still on the old system can pay this way.

Whilst we can't possibly read every single post, here on the Forum Team we do proactively look for useful information/insights on the Forum.

This particular issue about British Gas's new platform not catering for variable DDs has been mentioned previously in other threads, and I flagged this to my news and utilities colleagues here at MSE so it's on their radar.

pseudodox

Dolor said:

As it is the norm for suppliers to pay their wholesalers in advance of supply, I do not think it unreasonable for suppliers to ask for some payment in advance. The greater the number of consumers that elect to ‘pay on presentation of a bill’ the higher the supplier’s borrowing costs will be. All businesses need cash flow to survive.

I need cash flow to survive - I need cash NOW to pay the plumber to fix my loo. OVO wanted me to pay them 29% of my income each month in advance for their prediction of my consumption being more than double the energy I had used on average over the previous 17 years with SSE.  By now they would have taken almost £1800 in FDDs since October whereas  my energy consumption since then has been £890.  Now THAT is not some payment in advance, that is an unreasonable attempt to support their cash flow with my savings!

[Deleted User]

pseudodox said:

Dolor said:

As it is the norm for suppliers to pay their wholesalers in advance of supply, I do not think it unreasonable for suppliers to ask for some payment in advance. The greater the number of consumers that elect to ‘pay on presentation of a bill’ the higher the supplier’s borrowing costs will be. All businesses need cash flow to survive.

I need cash flow to survive - I need cash NOW to pay the plumber to fix my loo. OVO wanted me to pay them 29% of my income each month in advance for their prediction of my consumption being more than double the energy I had used on average over the previous 17 years with SSE.  By now they would have taken almost £1800 in FDDs since October whereas  my energy consumption since then has been £890.  Now THAT is not some payment in advance, that is an unreasonable attempt to support their cash flow with my savings!

You are an outlier. I thought that Ovo was offering interest on consumer credit balances. 

https://www.ovoenergy.com/ovo-interest-reward