E-on increasing my Direct Debit when in Credit

Scot_39

MultiFuelBurner said:

Not to go too off topic but we both have reasonable salaries and 4 years ago we got a dog. The vets bills have more than doubled, maybe tripled. 

We can afford that but I can understand others being caught out by the price rises.

You entitled to use PDSA ?

Probably not if both earning decent money I guess but others can enjoy having a pet with their help.

deano2099

MultiFuelBurner said:

deano2099 said:

EssexHebridean said:

 Another scenario - someone in a household where money is seriously tight and no EF is in place, or the one there was has had to be used and not yet replenished. If the fridge breaks down, and there is money stashed away in the energy pot, but nowhere else - do you struggle on without a fridge, or do you raid the energy savings to replace it? Someone who knows they could find themselves in that position might indeed find it "safer" to just pay the monthly amount. Even those who have simply never been taught about budgeting - their parents always paid for energy monthly, and so as far as they are concerned that is just how they do it. All of those folk are also likely to not be candidates to otherwise have the money stashed away in a high interest paying account either - so in fact they're not "losing" anything by having a credit balance built. It's often not people being "tempted to spend it on something unnecessary" that's the issue - it's them feeling they are left with no choice but to spend it on something entirely essential - and organisation and motivation can't always over-ride "life getting in the way".

I'd argue when life does get in the way, most of the time it absolutely *is* better to delay paying the energy bill than suffering the loss of something actually essential. Not having a working fridge could cost you far more in the medium term than going in to debt on your energy bill - the extra expenditure on travel to buy food every day (or buying from more expensive local stores), not being able to store leftovers, etc. 

You're totally correct that sometimes life will deliver you more pressing issues than keeping on top of your energy bill (given that repayment terms are actually fairly generous) - where I entirely disagree is the idea that in those circumstances, you're better off not being able to deal with the more pressing issue but still have a credit balance with your energy supplier.

(Obviously there's a grey area here around what is absolutely essential, and yes, life might throw at you the chance for a "family trip to Disneyland" which you just *can't* miss out on... I personally agree with Ofgem's recommended approach which is that energy companies should have to return a credit balance of any size, at any time, at the customer's request. Provides some sort of mental barrier for people over spending it while still allowing people access to it in an actual emergency).

I don't know what we would chose to pay/not pay should push come to shove in dire circumstances.

We have always seen energy as an essential, but given the rules about cutting people off and the big four figure sums we have seen tenants owe on properties in the past then perhaps utilities could wait if need be.

Absolutely. My only point is you should always want to give yourself the ability to make that choice.

la531983

I dont think the OP cares anymore. Hasnt come back from what I can see.

Backgardenlounger

la531983 said:

With all due respect, £24.80 is a tiny amount of credit when we are just about to head into winter. Generally people build up a decent credit in summer to use in the winter. That amount of credit could be swallowed up in 3 or 4 cold days.


Post up your annual usage, along with your unit rates, and someone can tell you if it sounds reasonable.  You already gave them "consent" to amend your payments (with notice) by signing up to the billing terms.

Energy company's believe that are now banks , it used to be be that you would recieve a quarterly bill and then pay for your usage, now they want you to pay in advance, I'm in credit also and keep on top of my Bill's and have all recieved a email because my last months usage is more than what they have estimated,  I had family staying with me hence more usage, and recieved following from E on..

Even though you're in credit by £46.44, you're using an average of £21.44 more each month than your current Direct Debit (DD) payment covers, which means your account balance is £200.28 behind where we'd expect it to be at this time of year.

What you need to do.

The quickest way to get your account back on track is with a one off payment of £200.28 on a credit or debit card, and by changing your monthly DD to £171.44. Just tap the button below to make a payment online, or give us a call and we'll help you sort it.
If you don't do this we'll change your monthly DD to £188.13, starting with your payment on 2 December 2024. We'll continue to review your account regularly to check your DD is set to the right amount.and as you can see they are asking me to use a CREDIT CARD , so I'm not in debit with them I'm in credit but there asking me to in debit with my credit card...

Swipe

Switch to variable direct debit if you don't like being in credit. 

molerat

With Eon as long as you have a reasonable credit balance you can reduce the DD to 10% below their recommended level.  

Even Martin, the big nay sayer of energy companies holding on to credit, says you should be 2 month's DD in credit at this time of year to cover the winter extra use so the energy company are correct in that you need to pay more or you will run into serious debit later on, you can't be in debit all the time on a budget account.  

As above, if you don't like being in credit change to variable monthly DD with the slight disadvantage of big bills in winter or stay on monthly budget DD and go with the balance credit and debit cycle. 

RelievedSheff

Backgardenlounger said:

la531983 said:

With all due respect, £24.80 is a tiny amount of credit when we are just about to head into winter. Generally people build up a decent credit in summer to use in the winter. That amount of credit could be swallowed up in 3 or 4 cold days.


Post up your annual usage, along with your unit rates, and someone can tell you if it sounds reasonable.  You already gave them "consent" to amend your payments (with notice) by signing up to the billing terms.

Energy company's believe that are now banks , it used to be be that you would recieve a quarterly bill and then pay for your usage, now they want you to pay in advance, I'm in credit also and keep on top of my Bill's and have all recieved a email because my last months usage is more than what they have estimated,  I had family staying with me hence more usage, and recieved following from E on..

Even though you're in credit by £46.44, you're using an average of £21.44 more each month than your current Direct Debit (DD) payment covers, which means your account balance is £200.28 behind where we'd expect it to be at this time of year.

What you need to do.

The quickest way to get your account back on track is with a one off payment of £200.28 on a credit or debit card, and by changing your monthly DD to £171.44. Just tap the button below to make a payment online, or give us a call and we'll help you sort it.
If you don't do this we'll change your monthly DD to £188.13, starting with your payment on 2 December 2024. We'll continue to review your account regularly to check your DD is set to the right amount.and as you can see they are asking me to use a CREDIT CARD , so I'm not in debit with them I'm in credit but there asking me to in debit with my credit card...

EON are quite correct in what they say. With a DD account you would expect to be 2-3 months in credit at this time of year to avoid going into debit over the winter months. 

Scot_39

Backgardenlounger said:

la531983 said:

With all due respect, £24.80 is a tiny amount of credit when we are just about to head into winter. Generally people build up a decent credit in summer to use in the winter. That amount of credit could be swallowed up in 3 or 4 cold days.


Post up your annual usage, along with your unit rates, and someone can tell you if it sounds reasonable.  You already gave them "consent" to amend your payments (with notice) by signing up to the billing terms.

Energy company's believe that are now banks , it used to be be that you would recieve a quarterly bill and then pay for your usage, now they want you to pay in advance, I'm in credit also and keep on top of my Bill's and have all recieved a email because my last months usage is more than what they have estimated,  I had family staying with me hence more usage, and recieved following from E on..

Even though you're in credit by £46.44, you're using an average of £21.44 more each month than your current Direct Debit (DD) payment covers, which means your account balance is £200.28 behind where we'd expect it to be at this time of year.

What you need to do.

The quickest way to get your account back on track is with a one off payment of £200.28 on a credit or debit card, and by changing your monthly DD to £171.44. Just tap the button below to make a payment online, or give us a call and we'll help you sort it.
If you don't do this we'll change your monthly DD to £188.13, starting with your payment on 2 December 2024. We'll continue to review your account regularly to check your DD is set to the right amount.and as you can see they are asking me to use a CREDIT CARD , so I'm not in debit with them I'm in credit but there asking me to in debit with my credit card...

Missing how much your actually paying currently vs the £188 - and whether in fact thats reasonable since the cap has just increased 10%.

Eon normally send a price change summary of on SVT every cap change - what was their predicted cost at new rates.

And last winter was so mild - I used 10% less energy - and I am a low user.

I used to set my DD - until EPG put me in credit after reacted to Ofgem cap in Oct 22.

New DD = ( predicted cost over 12m - credit ) /12 + 5-10% margin depending if units used for cost based on a mild or cold winter

I have in past had refunds from EOn at review - and EOn Next have repeatedly lowered my DD since let them control - to reflect at one stage £300+ in credit and lowering in cap tariff rates.

I could I guess switch to MVDD - but I am only about 2m DD in credit - I would if anything set it higher than they have - from Oct rates - and I know even my all electric heating can treble the bills in a really cold month.

400ixl

This is a year old thread.

Scot_39

400ixl said:

This is a year old thread.

Yes but @Backgardenlounger posted here yesterday rather than starting their own.

It might be better split - but it's on the same topic with same supplier.  

Its really not a bad fit to topic for a first post.