E-on increasing my Direct Debit when in Credit

MultiFuelBurner

So if they switch to a new supplier say October for the purposes of this example. They obviously start with zero balance.

The new supplier looks at the available industry historical data for energy and comes up with a direct debit amount each month.

Because the switcher transfers just as winter hits they will run in debit I presume with the new supplier until well into summer (August or even September)

Just curious as we pay whole bill monthly DD but didn't know if energy companies were willing to run at a loss with new customers switching at this time of year.

Alnat1

Most companies now except you to pay the first DD as soon as they get your account open and then also to pay the regular monthly DD on a set date, so two payments being taken that month.

MattMattMattUK

MultiFuelBurner said:

Because the switcher transfers just as winter hits they will run in debit I presume with the new supplier until well into summer (August or even September)

Almost no suppliers allow people to go into debt anymore, they will be expected to pay their Direct Debit at a level to maintain their account in credit when a bill is issued, they would likely face significantly higher than average usage divided by twelve payments for the next six months with them reducing somewhat in April next year. 

MultiFuelBurner said:

Just curious as we pay whole bill monthly DD but didn't know if energy companies were willing to run at a loss with new customers switching at this time of year.

I do the same and I know more and more people doing so, but those are all people who are fully capable of budgeting for higher winter bills which some people are not able to do, or at least not stick to the budget. 

kaymse

Exodi said:

This type of thread comes up every summer.

If you want to pay roughly the same amount every month, by the fact you use more energy on heating in the winter, you will need to build up a credit balance during the summer that can be used during the winter. Alternatively, you can just pay more in the winter.

As @dunstonh says above, this breakeven point is generally around May.

MSE sometimes releases charts showing this, I've included the below from May 2023 (though I wouldn't pay attention the specific credit £ amounts as energy prices have changed since then).

It shows that you might expect to have a nil credit balance in May, with your highest credit balance being around November, at which point you start to diminish your credit position as the heating goes on.

Being in September with virtually no credit is an issue, hence why Eon has increased your DD.

This isn’t this.

the debt was fake.

im always in credit. Then from July my energy supplier refused to use meter readings and switched to estimates.these estimates caused a false debt.

I had to ask compensation before they fix it. Once updated it with my readings, I’m back to being in credit.

this is them trying to create false debts, not me being dim

wild666

I've just reduced my DD from £69 to £57 but I have a £316 credit. In Winter I will use less than 190 kWh per month due to the settings I have for the heating. 
I tried to get a balance forecast from my supplier, Octopus but it said it was unavailable saying 

Balance Forecast is currently available for customers who:

• Pay by a fixed monthly Direct Debit
• Are on a standard Fixed or Flexible tariff
• Had a bill issued in the last 60 days

The last time I checked the balance forecast it said I should be paying around £80 per month but my usage indicates that I should be paying around £58 per month since I went on the tracker tariff in July. 

deano2099

MattMattMattUK said:

MultiFuelBurner said:

Because the switcher transfers just as winter hits they will run in debit I presume with the new supplier until well into summer (August or even September)

Almost no suppliers allow people to go into debt anymore, they will be expected to pay their Direct Debit at a level to maintain their account in credit when a bill is issued, they would likely face significantly higher than average usage divided by twelve payments for the next six months with them reducing somewhat in April next year. 

Which is crazy given far more money has been lost through companies going bankrupt while being in debt to consumers than has been from consumers going bankrupt while their energy accounts were in debt.

Exodi

kaymse said:

Exodi said:

This type of thread comes up every summer.

If you want to pay roughly the same amount every month, by the fact you use more energy on heating in the winter, you will need to build up a credit balance during the summer that can be used during the winter. Alternatively, you can just pay more in the winter.

As @dunstonh says above, this breakeven point is generally around May.

MSE sometimes releases charts showing this, I've included the below from May 2023 (though I wouldn't pay attention the specific credit £ amounts as energy prices have changed since then).

It shows that you might expect to have a nil credit balance in May, with your highest credit balance being around November, at which point you start to diminish your credit position as the heating goes on.

Being in September with virtually no credit is an issue, hence why Eon has increased your DD.

This isn’t this.

the debt was fake.

im always in credit. Then from July my energy supplier refused to use meter readings and switched to estimates.these estimates caused a false debt.

I had to ask compensation before they fix it. Once updated it with my readings, I’m back to being in credit.

this is them trying to create false debts, not me being dim

Are you the OP on a different account?

dunstonh

Exodi said:

kaymse said:

Exodi said:

This type of thread comes up every summer.

If you want to pay roughly the same amount every month, by the fact you use more energy on heating in the winter, you will need to build up a credit balance during the summer that can be used during the winter. Alternatively, you can just pay more in the winter.

As @dunstonh says above, this breakeven point is generally around May.

MSE sometimes releases charts showing this, I've included the below from May 2023 (though I wouldn't pay attention the specific credit £ amounts as energy prices have changed since then).

It shows that you might expect to have a nil credit balance in May, with your highest credit balance being around November, at which point you start to diminish your credit position as the heating goes on.

Being in September with virtually no credit is an issue, hence why Eon has increased your DD.

This isn’t this.

the debt was fake.

im always in credit. Then from July my energy supplier refused to use meter readings and switched to estimates.these estimates caused a false debt.

I had to ask compensation before they fix it. Once updated it with my readings, I’m back to being in credit.

this is them trying to create false debts, not me being dim

Are you the OP on a different account?

kaymse's thread was deleted sometime late this morning.  They are not the OP on this and the issue kaymse is referring to is not the same as the OP on this thread.   So, not sure they have posted

badmemory

That credit balance will only just pay a months standing charges so basically has already gone.

la531983

dunstonh said:

Exodi said:

kaymse said:

Exodi said:

This type of thread comes up every summer.

If you want to pay roughly the same amount every month, by the fact you use more energy on heating in the winter, you will need to build up a credit balance during the summer that can be used during the winter. Alternatively, you can just pay more in the winter.

As @dunstonh says above, this breakeven point is generally around May.

MSE sometimes releases charts showing this, I've included the below from May 2023 (though I wouldn't pay attention the specific credit £ amounts as energy prices have changed since then).

It shows that you might expect to have a nil credit balance in May, with your highest credit balance being around November, at which point you start to diminish your credit position as the heating goes on.

Being in September with virtually no credit is an issue, hence why Eon has increased your DD.

This isn’t this.

the debt was fake.

im always in credit. Then from July my energy supplier refused to use meter readings and switched to estimates.these estimates caused a false debt.

I had to ask compensation before they fix it. Once updated it with my readings, I’m back to being in credit.

this is them trying to create false debts, not me being dim

Are you the OP on a different account?

kaymse's thread was deleted sometime late this morning.  They are not the OP on this and the issue kaymse is referring to is not the same as the OP on this thread.   So, not sure they have posted

Kaysme was accusing people trying to help him/her of being Octopus scammers iirc.
No wonder she wasn't getting any help.