Variable to fixed Direct Debit

Scot_39

I pay a lot  more off peak than equivalent rate on E7 with EOn (about 4p / kWh) - but then it's easier to use off peak the way my split timings work.

But I'd ditch it for E7 / agile - with better storage heating - or SR / tracker with normal heating even at a push - but last time I ran the numbers the pay back on the new heaters - was in the order of 20 years - as I am a lowish user of heat.

Chrysalis

Traditionally Fixed DD avoided surprises so to speak.

1 - Your usage shoots up (fixed DD wont reflect this as suppliers dont update your predicted usage very often, Octopus only once a year in April).  This can end up with you spending more, because if you dont pay attention to bill/readings you wont notice until they recalculate the predicted usage.

2 - Seasonal fluctuations dont usually affect fixed DD.

The downsides of fixed DD, because (even with actual readings) its based on an annual prediction it often is wrong, either too low or too high.

Also because of less stability in the market, fixed DD isnt as assured as it was pre 2022.  So e.g. if there is a world event that makes prices double in July, your fixed DD will sitll be shooting up as suppliers recalculate your liability.  This is why this forum and other parts of social media got flooded with complaints from fixed DD customers asking why their fixed DD went up by a large amount.

Variable DD gives peace of mind you wont over pay and you wont build up debt either.

danrv

danrv said:

Gerry1 said:

Pay a suitable amount into an instant access savings account every month and then you'll be getting 4-5% interest rather than donating it to your supplier.

Good idea. I have an Everyday Saver account as well as current with my bank.
I can easily move some money over and then change the account details for the DD.

I changed the bank details with Eon Next to 
the Everyday Saver ones and Eon have emailed:
'Your bank has informed us that some of your Direct Debit details are not quite correct'.

In the Eon Next app, a message says I haven't setup a Direct Debit yet. 
When I follow the steps to do so, I can enter the bank details ok but then a suggested DD amount is given.
I pay monthly for the amount of electricity I 
use and Eon Next inform me accordingly.
I just want to use a different account to pay.

Bit confused as to whether I have DD or not with them. I think it's monthly payment on receipt of bill.
Any help appreciated.

Robin9

danrv said:

danrv said:

I changed the bank details with Eon Next to 
the Everyday Saver ones and Eon have emailed:
'Your bank has informed us that some of your Direct Debit details are not quite correct'.

I suspect Eon have bounced your DD because you can't usually use a Savings Account .

bob2302

danrv said:

danrv said:

Gerry1 said:

Pay a suitable amount into an instant access savings account every month and then you'll be getting 4-5% interest rather than donating it to your supplier.

Good idea. I have an Everyday Saver account as well as current with my bank.
I can easily move some money over and then change the account details for the DD.

I changed the bank details with Eon Next to 
the Everyday Saver ones and Eon have emailed:
'Your bank has informed us that some of your Direct Debit details are not quite correct'.

The implication was that you could be getting interest on the money that the supplier was holding, not that your DD should come from a savings account.

FWIW it isn't necessarily right anyway. Last year I broke even in late June making it more or less neutral, YMMV.

danrv

bob2302 said:

danrv said:

danrv said:

Gerry1 said:

Pay a suitable amount into an instant access savings account every month and then you'll be getting 4-5% interest rather than donating it to your supplier.

Good idea. I have an Everyday Saver account as well as current with my bank.
I can easily move some money over and then change the account details for the DD.

I changed the bank details with Eon Next to 
the Everyday Saver ones and Eon have emailed:
'Your bank has informed us that some of your Direct Debit details are not quite correct'.

The implication was that you could be getting interest on the money that the supplier was holding

Ok. I misunderstood that
Not sure how to arrange this.
I'll revert back to the current account for payments.

Gerry1

danrv said:

bob2302 said:

danrv said:

danrv said:

Gerry1 said:

Pay a suitable amount into an instant access savings account every month and then you'll be getting 4-5% interest rather than donating it to your supplier.

Good idea. I have an Everyday Saver account as well as current with my bank.
I can easily move some money over and then change the account details for the DD.

I changed the bank details with Eon Next to 
the Everyday Saver ones and Eon have emailed:
'Your bank has informed us that some of your Direct Debit details are not quite correct'.

The implication was that you could be getting interest on the money that the supplier was holding

Ok. I misunderstood that
Not sure how to arrange this.
I'll revert back to the current account for payments.

@danrv The excellent Chase debit card has a linked Save & Invest account which offers DDs.  It pays 4.1% at present.  You could set up a standing order from your existing current account, setting it to equal the fixed monthly DD.  Of course, you have to make sure there's always sufficient in the Chase account but that shouldn't be too onerous because your energy company will give notice before the DD is collected.

Variable DD also means that you're more immune to Back Billing.  If your energy account is in credit it can be wiped out by Back Billing, the protection is much weaker than most people think.

Another trick is to pay your Council Tax via Amex.  Mine doesn't accept Amex (and the Chase debit card doesn't give 1% cashback on tax payments) but I was surprised to find that the council will supply a PayPoint card which can be used with Amex payments to earn Avios / Nectar points.  No mention of PayPoint on the council website.

Neither trick is life changing, but every little helps !