How can continually overpaying be cheaper? A shocking £3000 in credit.

bagand96

This thread has it all! "Rip-off" "scam" and then accusing helpful posters of working for energy companies just because they didn't join the outrage (even though they were giving decent advice!)

It's a good reminder on the importance of keeping on top of your energy account, and it's good that OP's father is now getting help on this.

Also worth mentioning if he is vulnerable you might want to register him for the Priority Services Register with the supplier. 

badger09

Personal Responsibility🤔

MattMattMattUK

badger09 said:

Personal Responsibility🤔

It does not exist anymore for a substantial minority, possibly even a majority of the population. 

Scot_39

TooOrangeyForCrows said:

Hi. Thanks for all the responses.

I actually just found this article about this very subject on MSE.
 It certainly is time to quote unquote "Stop the rip-off" which contrary to some opinions here (possibly from planted energy stooges) it most certainly is.

https://blog.moneysavingexpert.com/2024/05/martin-lewis--stop-the-rip-off---get-p100s-credit-back-p100s-fro/

"Energy firms are said to be sitting on over £3 BILLION of our cash, building up this huge reservoir from the two-thirds of homes who pay by monthly Direct Debit

Yet we're about to enter the PERFECT TIME to stop the rip-off and get that money back" 

- - - - - - - - - -

"Too much credit? Get your cash back

Condition 27 of energy suppliers' licences is that they must take reasonable steps to ensure Direct Debit levels are fair, and to explain the level they're set at. So, just to reiterate:

- Make sure the bill is based on an up-to-date (smart) meter reading
- Ensure your Direct Debit is about right

Then call (or do it online if your firm has it) and ask why you're in so much credit – give it a chance to explain. Though the rules state that if too much credit has accumulated and a customer asks for it back, suppliers must refund it – or clearly explain why not. If they don't, you can make a formal complaint, and if it rejects it, escalate it to the Energy Ombudsman for free, which can adjudicate. Below are the big firms' policies…"

- - - - - - - - - -

"Ovo Energy

You can request it if you have more than £5 in credit and give a meter reading".

- - - - - - - - - -

I'll update on how it goes.

The "rip off" is maybe in part because many people are not managing their accounts.

Submitting Regular Readings, checking bills, self adjustable dds (on online account or phone) and refunds (online account or phone) when large credit mounts are all part of bill payers armoury and defence against it.

Contrary to media focussed  hype - last year some quoted £bns more than reality as total.  And in same articles ignored the billions in debt and arrears to provide balance on suppliers actual net cash balances. 
Ofgem have been monitoring CCBs for years now. The average customer credit balances have been falling for those on annualised DD - to iirc around just under £230 iirc in last data set report by Ofgem I checked.  Down about £30 year on year.

So your fathers case if true balance very much an exception not a rule.

You admit last definite readings NOV are before tge bulk of winter. Maybe a big part of the problem.

If he finds it difficult to read meter -  get him registered on psr or get a smart meter( former might acelerate access to latter as a priority user).

A high heat user - many elderly are - can use £1000s over winter.  Has any of that truly been deducted from the £3000 ?  Have you even checked what latest charges have been - some old systems only billed usage every 6 months - many still only do quarterly.

And to avoid repeat once resolved - if he can budget for higher winter bills- swap suppliers to one that will bill and charge monthly - by variants of monthly variable DD.

Ovo used to - but it's negative cash flow - as means people pay after consumption - more similar to standard credit (and in past charged as such by likes of SP who used to offer a quarterly version) - so increases operating costs.

Scot_39

badger09 said:

Personal Responsibility🤔

To be fair - It's an elderly parents account.
Not all will seek help even from closest relatives.
And are often far too trusting of energy companies to bill them accurately.

MWT

Scot_39 said:

badger09 said:

Personal Responsibility🤔

To be fair - It's an elderly parents account.
Not all will seek help even from closest relatives.
And are often far too trusting of energy companies to bill them accurately.

I'm not really convinced it is even a matter of being 'elderly' however you define that, I know people a long way from retirement that have no clue about their energy bills, pension plans, investments etc. 

matelodave

MWT said:

Scot_39 said:

badger09 said:

Personal Responsibility🤔

To be fair - It's an elderly parents account.
Not all will seek help even from closest relatives.
And are often far too trusting of energy companies to bill them accurately.

I'm not really convinced it is even a matter of being 'elderly' however you define that, I know people a long way from retirement that have no clue about their energy bills, pension plans, investments etc. 

Its often nothing to do with being "elderly" or "vulnerable"  although I grant you that there are those who need some help.

It often gets trotted out as an excuse by many of whom don't bother to keep an eye on what is going on, don't respond to notifications, check bills or even bank accounts etc and then want someone else to blame for their shortcomings.

MattMattMattUK

MWT said:

Scot_39 said:

badger09 said:

Personal Responsibility🤔

To be fair - It's an elderly parents account.
Not all will seek help even from closest relatives.
And are often far too trusting of energy companies to bill them accurately.

I'm not really convinced it is even a matter of being 'elderly' however you define that, I know people a long way from retirement that have no clue about their energy bills, pension plans, investments etc. 

I agree it is not an age thing. I know older people totally competent with their finances, I know younger people who are a total disaster, in general finances are less to do with age and more to do with general outlook.

Scot_39

MWT said:

Scot_39 said:

badger09 said:

Personal Responsibility🤔

To be fair - It's an elderly parents account.
Not all will seek help even from closest relatives.
And are often far too trusting of energy companies to bill them accurately.

I'm not really convinced it is even a matter of being 'elderly' however you define that, I know people a long way from retirement that have no clue about their energy bills, pension plans, investments etc. 

The OP mentioned for his dad - and in another post by OP referred to the impact of bad billing on the vulnerable.

Now it might be his father is neither one or the other - but was the general gist I got from perhaps wrongly linking those two comments.

It wasn't meant as some sort of general ageist slur.

And the other two issues can apply whether significant age related / other vulnerability the issue.

I'm not a state pensioner quite yet - but with any luck I'll get their one day and in good enough health to enjoy retirement for years beyond.

oldagetraveller1

"I agree it is not an age thing. I know older people totally competent with their finances, I know younger people who are a total disaster,"

I would suggest that the former are in the majority.