Apparently Policies of all energy compaines?

betterallround

Has anyone else come across this? That what I have been told by my energy company that " all" energy companies have this policy to take funds from you if you happen to be in credit even if you have a direct debit set up if it does not met the costs even when they gave you the direct debit figure? I thought they had to give you a choice or at least tell you before taking the funds? All help is appreciated Thank you

dunstonh

Has anyone else come across this? That what I have been told by my energy company that " all" energy companies have this policy to take funds from you if you happen to be in credit even if you have a direct debit set up if it does not met the costs even when they gave you the direct debit figure?

This section is heating oil, LPG, solid and other fuels.  So, I guess you have posted in the wrong forum as you pay as you go with those (in the vast majority of cases).

Assuming you are referring to gas or electric, then its right in respect of monthly budgeting plans but wrong if you are not on a budgeting plan. 

With a budgeting plan, you would typically pay the same amount each month and in the warmer months of the year you build up credit and then in the colder months from November to April, when you typically use the most energy, you drain that summer credit down to breakeven around late April/early May.

If you choose not to be on the budget plan but to pay the bill ,whatever it may be, then you will pay more in winter but pay less in summer.  You wont get into debit or credit but your bills will be different every month.

 I thought they had to give you a choice or at least tell you before taking the funds? 

You get the choice with most suppliers whether you want to be on full bill payment or budget plan but once you have chosen, you stay on that until you change it.  They don't need to tell each time.

QrizB

betterallround said:

Has anyone else come across this? That what I have been told by my energy company that " all" energy companies have this policy to take funds from you if you happen to be in credit even if you have a direct debit set up if it does not met the costs even when they gave you the direct debit figure?

Yes. If you are on a fixed Direct Debit then your balance will vary up and down depending on how much your actual bill is, vs. your DD payment.

If you have a monthly variable Direct Debit, you shouldn't have a credit balance.

betterallround said:

I thought they had to give you a choice or at least tell you before taking the funds?

No, credit on your account is there specifically to be used to pay your energy bills, so that's what it's used for.

MWT

betterallround said:

Has anyone else come across this? That what I have been told by my energy company that " all" energy companies have this policy to take funds from you if you happen to be in credit even if you have a direct debit set up if it does not met the costs even when they gave you the direct debit figure? I thought they had to give you a choice or at least tell you before taking the funds? All help is appreciated Thank you

Are you saying that they have changed your Direct Debit and taken a higher amount from your bank account without telling you about the change?

There is certainly no guarantee that your DD will not change as it depends on your actual use, but if they need to make a change they should tell you before taking the higher amount from your bank account.

Brie

MWT said:

betterallround said:

Has anyone else come across this? That what I have been told by my energy company that " all" energy companies have this policy to take funds from you if you happen to be in credit even if you have a direct debit set up if it does not met the costs even when they gave you the direct debit figure? I thought they had to give you a choice or at least tell you before taking the funds? All help is appreciated Thank you

Are you saying that they have changed your Direct Debit and taken a higher amount from your bank account without telling you about the change?

There is certainly no guarantee that your DD will not change as it depends on your actual use, but if they need to make a change they should tell you before taking the higher amount from your bank account.

Not should.  They MUST tell you in advance.  I thought the standard was 15 days but can't find anything to back that up.  But there should be time for you to cancel the DD if you know you can't make the payment.  Or don't want to for some other reason like having excess credit.

From Which

• if there is a change in the amount to be paid on the payment date, the person receiving the payment (the originator) must notify you in advance

Should I use a direct debit or standing order for regular payments? - Which?