utilities variable DD Outfox say they don't allow it??

FreddieM

Just wondered if you pay by variable DD. I've been with Eon-Next for at least 5 years and because they only billed me for gas when I emailed them I told them I will in future only pay by Variable DD. That was fine by them and at least I know every month what is coming out of my account. This past week I have been looking to change for a cheaper option, and Outfox Energy came out in my area well ahead of many rivals. I was about to join them but thought I would ask about the Variable DD. Quite directly they said they don't allow it???? Is it my right because I always used to dictate my payments when companies write and indicated huge increases, or is it their choice? Just wondered

MWT

You are likely to find it increasingly difficult to find lower-cost suppliers willing to offer variable DD due to the cash holding requirements imposed by Ofgem on suppliers. 

There is no requirement to offer variable DD as a payment method. 

la531983

MWT said:

You are likely to find it increasingly difficult to find lower-cost suppliers willing to offer variable DD due to the cash holding requirements imposed by Ofgem on suppliers. 

There is no requirement to offer variable DD as a payment method. 

Fuse are a "lower cost supplier" and do variable DD, in fact thats all they offer (although you can top up also)

Swipe

FreddieM said:

Just wondered if you pay by variable DD. I've been with Eon-Next for at least 5 years and because they only billed me for gas when I emailed them I told them I will in future only pay by Variable DD. That was fine by them and at least I know every month what is coming out of my account. This past week I have been looking to change for a cheaper option, and Outfox Energy came out in my area well ahead of many rivals. I was about to join them but thought I would ask about the Variable DD. Quite directly they said they don't allow it???? Is it my right because I always used to dictate my payments when companies write and indicated huge increases, or is it their choice? Just wondered

I treat it as a warning sign.

Bungle73

Swipe said:

FreddieM said:

Just wondered if you pay by variable DD. I've been with Eon-Next for at least 5 years and because they only billed me for gas when I emailed them I told them I will in future only pay by Variable DD. That was fine by them and at least I know every month what is coming out of my account. This past week I have been looking to change for a cheaper option, and Outfox Energy came out in my area well ahead of many rivals. I was about to join them but thought I would ask about the Variable DD. Quite directly they said they don't allow it???? Is it my right because I always used to dictate my payments when companies write and indicated huge increases, or is it their choice? Just wondered

I treat it as a warning sign.

Of what?

blah

MyRealNameToo

FreddieM said:

I was about to join them but thought I would ask about the Variable DD. Quite directly they said they don't allow it???? Is it my right because I always used to dictate my payments when companies write and indicated huge increases, or is it their choice? Just wondered

There is no obligation for them to offer variable DD so yes they can choose not to offer it. 

Swipe

Bungle73 said:

Swipe said:

FreddieM said:

Just wondered if you pay by variable DD. I've been with Eon-Next for at least 5 years and because they only billed me for gas when I emailed them I told them I will in future only pay by Variable DD. That was fine by them and at least I know every month what is coming out of my account. This past week I have been looking to change for a cheaper option, and Outfox Energy came out in my area well ahead of many rivals. I was about to join them but thought I would ask about the Variable DD. Quite directly they said they don't allow it???? Is it my right because I always used to dictate my payments when companies write and indicated huge increases, or is it their choice? Just wondered

I treat it as a warning sign.

Of what?

blah

As a company that has little confidence in its liquidity margins. Besides, I wouldn't choose them as a supplier on principle due to their connections with Fischer Future Heat.

wrf12345

They are in "good" company with regards to variable DD, BG does not offer it if on their new accounting system

MWT

la531983 said:

MWT said:

You are likely to find it increasingly difficult to find lower-cost suppliers willing to offer variable DD due to the cash holding requirements imposed by Ofgem on suppliers. 

There is no requirement to offer variable DD as a payment method. 

Fuse are a "lower cost supplier" and do variable DD, in fact thats all they offer (although you can top up also)

I said 'increasingly difficult' not 'impossible'

Watch this space though as what Ofgem are doing to try and increase liquidity levels is going to put pressure on the suppliers in ways that customers may not find helpful.

bristolleedsfan

Swipe said:

Bungle73 said:

Swipe said:

FreddieM said:

Just wondered if you pay by variable DD. I've been with Eon-Next for at least 5 years and because they only billed me for gas when I emailed them I told them I will in future only pay by Variable DD. That was fine by them and at least I know every month what is coming out of my account. This past week I have been looking to change for a cheaper option, and Outfox Energy came out in my area well ahead of many rivals. I was about to join them but thought I would ask about the Variable DD. Quite directly they said they don't allow it???? Is it my right because I always used to dictate my payments when companies write and indicated huge increases, or is it their choice? Just wondered

I treat it as a warning sign.

Of what?

blah

As a company that has little confidence in its liquidity margins.

Once upon a time and BTW Outfox launched towards the end of 2017,challenger energy companies were £100s cheaper than original Big Six SVR started trend of consumers paying for energy up front monthly.

Scot_39

FreddieM said:

Just wondered if you pay by variable DD. I've been with Eon-Next for at least 5 years and because they only billed me for gas when I emailed them I told them I will in future only pay by Variable DD. That was fine by them and at least I know every month what is coming out of my account. This past week I have been looking to change for a cheaper option, and Outfox Energy came out in my area well ahead of many rivals. I was about to join them but thought I would ask about the Variable DD. Quite directly they said they don't allow it???? Is it my right because I always used to dictate my payments when companies write and indicated huge increases, or is it their choice? Just wondered

MVDD imposes cash flow and debt risk costs on suppliers.

Part of the costs reflected in the £120 last time checked those on standard credit - inlcuding 100,000s of whom at big suppliers like EDF - who are now on SC monthly billing.

And Ovo iirc (a la BT model) who actually charge an additional levy on top of that premium - for paper statements via snail mail.

Suppliers are under no obligation to offer MVDD - one of the old 6 who did - stopped doing so probably 2-3 years ago now - arguably due to the added costs during the crisis and interest rate rises. And if Ofgem had any sense - they would stop others doing so - certainly discouraging those who do so at the full discounted annualized DD SC and unit rates vs Standard credit customers.

There is a clear presumption in past for annualized DD plans for them being run in credit - behind the Ofgem cap rates - if not full time - part of the time, and there is now clear guidance so suppliers are moving customers on annualized plans into permanent credit on annual cycle. 

And so the negative cash-flow impact of MVDD - like that adding to the SC rates vs annualized DD stands in even starker relief.  And more suppliers might follow the lead of those who no longer offer it - or never did.