British gas questions

NotRichAtAll

1st time in this particular forum and looking for some advice.

Firstly my wife passed recently, so our energy usage has dropped to a single person usage (me) and i have now to be responsible for myself.

most of my days are at work and nothing is been used other than basic household item like fridge,freezer.

I am currently with british gas on a standard variable tariff electric is 26.67 per kwh / 54.45 standing charge gas is 7.39 per kwh / 28.63 standing charge.

my direct debit was £106 per month, june's bill was £83.26 and i currently have a debt of £89.77

Yesterday they emailed me and said they have estimated i am not paying enough for the year and have increased my direct debit to £135 per month

So this has really got up my nose as i think if anything my bill will go down not up and feel i am been screwed, so much so that i am considering

a. switch to octopus

b.cancel DD and pay monthly for what i use

Does anyone have any info on rates for non direct debit customers ( i intend to call them monday when they are open) or any other advice, should i switch?

thank you

Swipe

a. switch to octopus

b.cancel DD and pay monthly for what i use

Move away from British Gas then pay a month in arrears of each bill by variable direct debit with Octopus or new supplier that allows it.

luci

I believe you will have to repay your debt before you can switch.

QrizB

1st time in this particular forum and looking for some advice.

Welcome to the Energy board! And I'm sorry for your loss.

cancel DD and pay monthly for what i use

As above, ask if you can change to monthly variable direct debit where each month's bill is paid in full as it arises.

If BG claim not to offer that, then you can look at switching to a supplier who does. Octopus do, for example.

my direct debit was £106 per month, june's bill was £83.26 and i currently have a debt of £89.77

Most people would expect their energy account to be closed to zero or even in credit at this time of year, since the heating season is well behind us. If you're DD is currently only £23 more than your monthly bill, and you're £90 in debit, you probably do need to increase it. Alternatively you could make a one-off payment to bring your account into balance and leave the DD alone.

None of this applies if you switch to monthly variable direct debit, of course.

NotRichAtAll

Thanks for the replies, paying the debit bit is not the issue, this equates from when my wife was running the show, she loved the tumble dryer, the tv was on all day etc.

my gripe is more the increase to £135 per month as if i am some kind of super power user :)

apparently the debt can switch aswell

done a fair bit of reading on the web and bg do not have a very good following

Swipe

At least if you owe money and aren't in credit, you probably won't have to wait long for your final bill.

debitcardmayhem

First of all sorry for your loss, I have been through that recently, but grief is transitory but memories are eternal.

it's part and parcel of being on being on SVT. You need to get off of that, but of course most(all) fixed rates have an exit fee so first of all work out what you use in kWh. Tell the good folks on here what you use for heating/water , do you have a smart meter, etc.

Most energy companies have no idea how much you will use going forward nor your circumstances,there are people on here that can try to help.

TroubledTarts

To be fair to British Gas they won't know you are a single person household and they also won't know that reason would automatically mean a reduction in the direct debit. They are just seeing a debt and forecasting the payments needed with the forecast potential increase in prices.

However, as others have suggested, a supplier who offers variable direct debit where you just pay for exactly what you use each month could work for you if you have a good mind for a budget and planning and realise your biggest bills will come in winter rather than levelled out across the year.

Scot_39

https://forums.moneysavingexpert.com/discussion/6676005/british-gas-questions

Again, sorry for your loss.

BG may not be aware of your personal circumstances if was not named on the bill. But to fair to them - the impact that will have on future use - is something that I suspect they cannot really act upon that - as they are under Ofgem guidance on allowing debt on accounts - or rather avoiding it.

But say at EOn - when in credit I could log in and drop my DD by 10%+ (think maybe 15% once) - and they left it there - but your now in debit - absolute and likely relative to expectation.

Most people would expect to be in credit at this time of year under the new annualised DD regime.

I am already over 1 month annualised DD in credit as of end of June DD / early July usage statement - if anything balance a little lower than some years recently.

The new norm at many suppliers - is for accounts never to be in debt - and as above they have Ofgem / govt support for that.

BG will likely be expecting similar from you - say 1 month in credit and so the rise isn't just the usage at the new more expensive July rates.

The July cap - when dual fuel up 13.5%, electric 5% but gas unit rates - if a heavy gas user in past a whopping 27.7% iirc on Ofgem's regional average.

So based on £106 + 13.5% would be £120 at July vs Jun SVT

The £89 debt - if moving you up over a year say /12 = c£7.50

And as above the fact you are in £95 debt at this time of year - suggests the old £106 just wasn't enough anyway - so may be underpaying by even more vs old use / rates - maybe in itself by £30-35 a month.

Arguably some might say - realistically - they could have asked for more like £165 than £135.

So I'd take the £135 and monitor your credit levels carefully - and see how you get on.

If you do use a lot less energy - you can then adjust as your balance adjusts.

But - in terms of your other questions

1) DD

Do not cancel the DD - well not to go standard credit - that will give you a rise - based on cap - of around (at post July TDCVs DD cap = £1663, credit cap = £1796 - £133 or 8% higher bills.

You could go smart prepay - and pay electronically at at least some suppliers - if you have smart - as thats currently even cheaper than DD rates (£1620 vs £1663 - but check your region numbers as it isn't that much if any cheaper for everyone iirc)

2) Variable DD

AFAIK BG will now do Monthly Variable direct debit - if you ask directly if you can afford / budget for the summer / winter variaton in bills. Not all do - and I think BG glitched for a while on their new accounts platform - but think they started again - at least for those that had it before.

However others certainly do - Octopus, EOn, EDF from past posts here - but check before switch to be sure - and if you know anyone at those suppliers - you can both get £50-100 in some cases as a referral / introductory payment.

https://www.moneysavingexpert.com/utilities/energy-supplier-rewards-and-referral-schemes/

NotRichAtAll

I initiated the switch tonight.

BG are aware my wife died and its only me here

i cancelled the direct debit

i really appreciate everyone's advice and opinion's it's been 35yrs sine i have been responsible for stuff like this, i gave my wife money each month and she dealt with it all, maybe not in the best most economical way, but she did her best.

I did some numbers and last years electric usage based on BG estimate readings was £977

Heating is never on am a thick skinned geordie :) living in kent

got myself some smart plugs coming, but i do know i am using less now on my own.

once again thanks for all the replies.

Octopus estimate my usage will be covered by £96 per month, i can work with that

WiserMiser

Not a good move to cancel the DD. They'll charge you about 7% or 8% more on the Pay On Receipt Of Bill option. That's an unnecessary waste of money especially if the final bill is more than you expected.