British Gas - Advice

Jack_bauer24

Hi,

I need some advice. Yesterday, I got a call from British Gas, offering me to go on Direct Debit for my Gas and Electric as they felt that Prepayment meter is no long useful to me anymore, due to my health issues (Mental Health) and my mobility, due to my dislocated knee cap.

Anyway, I agreed as I think it will be better for me, this way as it saves me the stress of keep topping up all the time and I don't need to worry now about running out of Gas and Electric, so the adviser applied for it and she said, today, it will take affect and I pay my Direct Debit 12 of every month, starting next month.

This has got me worried though, it states on my British Gas account the following as I just looked now:

Gas - Next Direct Debit payment - £33.57

Electric - Next Direct Debit payment £54.14

I am just wondering, will these amounts stay the same, or will it go up as more Gas and Electric I use?

I don't know how this works as I have always use Prepayment meter (Pay as you go).

Mark_d

I believe the pre-payment is currently cheaper than the rates you get on a credit meter...but that's not what you're asking about.

You direct debit amounts will depend on your tariff an also on your consumption.  They look very low to me.  I live in a 2 bed flat and pay £200 per month in total.

I suspect your direct debit payments are likely to double within the next month or two.

Jack_bauer24

Hi Mark, 

Ok, thank you. If it helps, I live in a 1 bed flat and its just me who's living here as I live alone. 

MikeJXE

I live alone in a 1 bed flat EPC B

My annual bill duel fuel is approx £700 

Jack_bauer24

MikeJXE said:

I live alone in a 1 bed flat EPC B

My annual bill duel fuel is approx £700 

OMG, how am I supposed to afford £700 a month, this has got me worried now and if I made the right decision. 

MikeJXE

£700 Per annum is £58.33 per month 

Jack_bauer24

MikeJXE said:

£700 Per annum is £58.33 per month 

Oh right, I thought you meant £700 a month lol. 

MikeJXE

BG are basing your DD on your usage history and so is the company I am with 

You need to remember 

If you use more you will pay more 

400ixl

Jack_bauer24 said:

Hi Mark, 

Ok, thank you. If it helps, I live in a 1 bed flat and its just me who's living here as I live alone. 

Those numbers are what they believe are the average amounts you need to pay over a full year (so covering both higher usage winter months and lower usage summer months).

How much each month do you currently pay on the pre-pay meter? What you need to think about is how much do you pay (consume) over the year. Then divide that by 12 as they smooth out your payments so they are the same each month.

So, if you currently use say £20 a month in the summer and £40 a month in the winter then you could say £20*6 + £40*6 is £360 a year, so a monthly direct debit would be £30 a month.

Obviously you would need to work out your own figures based on your pre-pay amounts, but it will give you a rough idea if the level they have set your direct debits are reasonable.

What is important is that you check the readings they have for you on a monthly basis. If you have a smart meter then log onto your account on a monthly basis and check what that says is correct against your meter. This way you will know that your billing is going to be accurate and you won't get any surprises.

It won't take long to bed things down and get to a good understanding of what the smoothed payments need to be, although do remember we are coming into winter so your account may go a bit into credit for a month or two, but then into debit until you start using less in the spring / summer.

FreeBear

MikeJXE said:

I live alone in a 1 bed flat EPC B

My annual bill dual fuel is approx £700 [£58 per month]

Currently, just me and the cat in a 3 bed semi. Using 2000kWh electricity and 3000kWh gas each year (estimated usage according to my latest bill). Monthly DD is set at £65 on Octopus Tracker, but would be around £80 on standard variable tariff.

Brie

i see elsewhere that you are getting PIP.  Have you asked if you are of a social tariff??