Increasing Direct Debit

slynn0493

I've just got off the phone with my energy company after getting an email saying they were increasing my direct debit. I currently pay £240 a month, and they wanted to increase it to £270 because my account "wouldn't be in credit by the end of March". Looking over my usage for last year averaged out at £160 a month, and this year I'm on track for it to average at £185 a month, and I am currently over £150 in credit.  So I am technically overpaying by a huge amount, yet they still wanted to increase! They then hit me with a threat that if my account went in to debit they would share information with credit reference agencies, which I found disgusting. 
I just wanted to check if anyone else has had this experience, or if its something that is being looked in to? It feels predatory.  

Robin9

Have you done your own calcs - in kWh not £ -  to see what the annual usage should be ?


One option perhaps is to change to variable monthly DD  but not all suppliers do and it needs good budgeting on your behalf

TheMilkmansDad

If you've done your math's and you're confident you'll stay in credit in March/April then I'd be inclined to stick to your guns. Their prediction's will be based on different formulas to yourself (fix expiring soon/colder winter to come?).

Who's the supplier? Most allow you to change your DD online.

Swipe

Please name the supplier

MWT

slynn0493 said:

 I currently pay £240 a month, and they wanted to increase it to £270 because my account "wouldn't be in credit by the end of March". Looking over my usage for last year averaged out at £160 a month, and this year I'm on track for it to average at £185 a month, and I am currently over £150 in credit. 

If you are only £150 in credit, that does not suggest you are overpaying much at all, as you are coming into winter with less than 1 months average cost in hand and possibly the most expensive months ahead of you...

I'd look at your numbers again and in particular the winter months for last year and see how they look when you use this years prices...

Exodi

MWT said:

slynn0493 said:

 I currently pay £240 a month, and they wanted to increase it to £270 because my account "wouldn't be in credit by the end of March". Looking over my usage for last year averaged out at £160 a month, and this year I'm on track for it to average at £185 a month, and I am currently over £150 in credit. 

If you are only £150 in credit, that does not suggest you are overpaying much at all, as you are coming into winter with less than 1 months average cost in hand and possibly the most expensive months ahead of you...

I'd look again at your numbers again and in particular the winter months for last year and see how they look when you use this years prices...

I was about to say the same...

slynn0493 said:

I currently pay £240 a month, and they wanted to increase it to £270
<snip>
I am currently over £150 in credit.  So I am technically overpaying by a huge amount

It's hard to see how you've "overpaying by a huge amount" with a relatively small surplus built up heading into the most expensive months...

I think you should park your anger with the energy company and double check you understand your actual usage - in kWh, not previous cost.

If you are willing to hear me out, there are several perfectly plausible explanations for what has happened.

For example, did you work out your average cost last year by literally adding up all your bills and dividing by 12?

The problem with this is bills don't always reflect usage, especially where estimated readings are used. What may have happened, is they were estimating your usage throughout the year, then when the end of the year came and a meter reading was provided, they realised your usage was actually higher and increased your direct debit . Not saying that is what has happened, just opening your mind to other possibilities.

Your unit rates could also be different. You could also just be consuming more.

The problem is it just doesn't track to say you're "overpaying by a huge amount" while having such a small amount of credit.

Keep_pedalling

If your average costs are really £185 pm and you are paying £240 pm you should be in a lot more credit that £150. 

dunstonh

Looking over my usage for last year averaged out at £160 a month, and this year I'm on track for it to average at £185 a month, and I am currently over £150 in credit.  

£150 Summer credit is not a lot for someone who thinks they are using the equivalent of £160pm but have been paying £240.

It sounds like you were in arrears previously and needed an increase to get you out of arrears.

Most people use the majority of the energy over the 6 months of Autumn/Winter.   The other six months they build credit for the following winter.    Your figures suggest you are significantly behind on summer credit and their increase request is justified.

However, to be sure, stop talking in ££ and start using kWh (or units).      And tell us your readings from May to October and November to April  (i.e. the warm light nights vs the cold dark days).   Seeing as you are confident of your use, you should be able to have that information to hand easily enough.

born_again

Swipe said:

Please name the supplier

I got one from Octopus. Suffice to say I will be setting my own DD amount & not their suggested amount.

MarkFromCornwall

I find it easier not to argue when my energy company increases my DD.  Then when I am in credit by a few hundred pounds I request a repayment which they normally do without arguing and quite quickly.

powerful_Rogue

slynn0493 said:

I've just got off the phone with my energy company after getting an email saying they were increasing my direct debit. I currently pay £240 a month, and they wanted to increase it to £270 because my account "wouldn't be in credit by the end of March". Looking over my usage for last year averaged out at £160 a month, and this year I'm on track for it to average at £185 a month, and I am currently over £150 in credit.  So I am technically overpaying by a huge amount, yet they still wanted to increase! They then hit me with a threat that if my account went in to debit they would share information with credit reference agencies, which I found disgusting. 
I just wanted to check if anyone else has had this experience, or if its something that is being looked in to? It feels predatory.  

Why is that disgusting? It's factuallly showing you can't handle your account.