Direct debit not coming down

CSI_Yorkshire

michael1234 said:

Robin9 said:

£400 is "only" one month of your average monthly bill -  not much as we prepare for a winter which may be colder than what we've had for some years.

I thought the average would take both winter and summer into account. Should I leave more credit with them - how many months ?

Many people suggest 2 or 3 months.

Others prefer more.

But many also prefer as little as possible and/or pay by the variable monthly method.

Gerry1

Interest rates are no longer peanuts so it makes sense for you to benefit (via a Variable Monthly DD) rather than your supplier.

Of course, you'll get lower summer bills and higher winter ones, but at least you'll always be in full control.

Sadly dozy Ofgem doesn't mandate suppliers to offer VMDD, but the better ones such as Octopus certainly do.

michael1234

Brie said:

kaysdee said:

I read it as there was a debt and the direct debit was increased to reclaim it.
Debt was subsequently settled as an additional payment but the direct debit wasn’t reduced to reflect this?

That's how I read it too. Granted it took a second read to get there!!

My concern however is that the OP seems to be happy to be paying based on estimates rather than actual readings.  That's a major mistake.  (assuming I haven't misunderstood)

Not been relying on estimates. Had a smart meter for a couple of months and before then would normally manage an actual reading every month or two. Our consumption hasn't changed massively either so don't know how the debt accrued.

I do wonder if it is not entirely at the supplier's cost to have me owe them money rather than vice-versa as it means they have more certainty I wouldn't be leaving. Academic now though.

Qyburn

Robin9 said:

£400 is "only" one month of your average monthly bill -  not much as we prepare for a winter which may be colder than what we've had for some years.

What's the impact of leaving the DD too low for the moment, doesn't it just mean he might have to increase it in the future? For myself I'd rather increase payments only if and when I know it's needed, not just in case. 

[Deleted User]

michael1234 said:

Brie said:

kaysdee said:

I read it as there was a debt and the direct debit was increased to reclaim it.
Debt was subsequently settled as an additional payment but the direct debit wasn’t reduced to reflect this?

That's how I read it too. Granted it took a second read to get there!!

My concern however is that the OP seems to be happy to be paying based on estimates rather than actual readings.  That's a major mistake.  (assuming I haven't misunderstood)

Not been relying on estimates. Had a smart meter for a couple of months and before then would normally manage an actual reading every month or two. Our consumption hasn't changed massively either so don't know how the debt accrued.

I do wonder if it is not entirely at the supplier's cost to have me owe them money rather than vice-versa as it means they have more certainty I wouldn't be leaving. Academic now though.

You don’t suddenly end up with a debt of £1700 on an energy account unless you have been content for the supplier to bill you using estimated readings. If you have provided actual meter readings, the supplier has a Licence obligation to bill you using these readings. I suspect that the debt has accrued as a result of what is known as a ‘catch up’ bill. 

Clearly, you have been under paying your supplier and you have not been looking closely at your bills. Until you provide estimated usage based on two actual readings a year apart, then no one will ever know whether the supplier’s calculation going forward is accurate. Estimated annual usage readings on bills is not an exact science, and it can be wildly out if estimated readings have been used in the past for billing.

This might sound a bit harsh but the person you can see in a mirror has to take some of the blame for the accrued debt.

michael1234

[Deleted User] said:

michael1234 said:

Brie said:

kaysdee said:

I read it as there was a debt and the direct debit was increased to reclaim it.
Debt was subsequently settled as an additional payment but the direct debit wasn’t reduced to reflect this?

That's how I read it too. Granted it took a second read to get there!!

My concern however is that the OP seems to be happy to be paying based on estimates rather than actual readings.  That's a major mistake.  (assuming I haven't misunderstood)

Not been relying on estimates. Had a smart meter for a couple of months and before then would normally manage an actual reading every month or two. Our consumption hasn't changed massively either so don't know how the debt accrued.

I do wonder if it is not entirely at the supplier's cost to have me owe them money rather than vice-versa as it means they have more certainty I wouldn't be leaving. Academic now though.

You don’t suddenly end up with a debt of £1700 on an energy account unless you have been content for the supplier to bill you using estimated readings. If you have provided actual meter readings, the supplier has a Licence obligation to bill you using these readings. I suspect that the debt has accrued as a result of what is known as a ‘catch up’ bill. 

Clearly, you have been under paying your supplier and you have not been looking closely at your bills. Until you provide estimated usage based on two actual readings a year apart, then no one will ever know whether the supplier’s calculation going forward is accurate. Estimated annual usage readings on bills is not an exact science, and it can be wildly out if estimated readings have been used in the past for billing.

This might sound a bit harsh but the person you can see in a mirror has to take some of the blame for the accrued debt.

You can be harsh - that's ok. Unjustified of course 8-). I know I was providing regular readings for years and paying all direct debits. I thought the purpose of direct debit was for the supplier to bill the required amount. I've been with Eon at least two years so I'm quite sure they know what my consumption is.

Anyway, I've done the switch now to Octopus. Amazed how quick it was compared to times past. It was billed as "easy" a few years ago but now it really is. Interesting that Octopus have started the direct debit at a figure lower than what I had requested from Eon.

I didn't find an option to pay be DD in full every month. Maybe that will be added once the actual switch takes place.

Alnat1

michael1234 said:

I didn't find an option to pay be DD in full every month. Maybe that will be added once the actual switch takes place.

You'll need to give them a ring once your account is all set up. Email might work but speaking to a human is often quicker.

RelievedSheff

If you were sending meter readings and your bills were based on those meter readings why or how did you end up with a £1700 debt?

Surely you would have noticed that what you were paying wasn't enough to cover your bills?

Now that you have switched at a time of year that you should have already started building up some credit for winter (our credit balance is two monthly payments by now) then you need to make sure that your payment is set at an amount that will cover your winter payments otherwise you will be in the same situation again next year with a hefty debt balance.

Do your own sums based on the energy you use, (the totals used will be covered on your bills) and set your repayment based on actual numbers what what a supplier predicts.

It sounds like you use a lot of energy, although you have provided no indication of kWh used, so you will quickly rack up a big debt it your payments are not covering your use.

victor2

Alnat1 said:

michael1234 said:

I didn't find an option to pay be DD in full every month. Maybe that will be added once the actual switch takes place.

You'll need to give them a ring once your account is all set up. Email might work but speaking to a human is often quicker.

You can do it by email. I switched an Octopus account to monthly payment in full several months ago that way. Had a reply confirming it was done in less than an hour!

michael1234

RelievedSheff said:

If you were sending meter readings and your bills were based on those meter readings why or how did you end up with a £1700 debt?

Surely you would have noticed that what you were paying wasn't enough to cover your bills?

Now that you have switched at a time of year that you should have already started building up some credit for winter (our credit balance is two monthly payments by now) then you need to make sure that your payment is set at an amount that will cover your winter payments otherwise you will be in the same situation again next year with a hefty debt balance.

Do your own sums based on the energy you use, (the totals used will be covered on your bills) and set your repayment based on actual numbers what what a supplier predicts.

It sounds like you use a lot of energy, although you have provided no indication of kWh used, so you will quickly rack up a big debt it your payments are not covering your use.

Would I have been best advised to call Eon up, wait in their telephone queue, just to ask if I can pay them more because I don't think they are billing me enough?

I'm now happily confirmed for paying each bill in full as it falls due with Octopus.

P.S. Gas 29,000 Kwh and electricity I can't remember.