FUSE energy prepayment £400 required to switch

oldernonethewiser

I signed up with Fuse.

Wasn't asked for any upfront payment.

Not sure how they work out who should or shouldn't pay.

Scot_39

it sems harsh - but as others have said make sure its an advance credit and not a secured retained deposit.

as others point out - no different from other suppliers policy for annualised DD, but then I thought Fuse were MVDD by default, abd had to request annualised / fdd

And not to put another slant on it - predicted winter cap costs - are and these are last weeks figures before gas month ahead hit over 230p/therm by the big 3 ave mse uses predicted to rise from £1723 to £2154(*) c25% £431. In jan as heating bills really kick in. Which might explain their higher deposit margins - and maybe NOT only really on annualised plans.

(*) means we are back to Ukraine era epg £2500 - ebss £400 so effective cap £2100 in winter 22/23 - type unit rates and much higher effective rates discounts for lower users when ebss £400 over lower unit use was a significant effective reduction. Over my 3400kWh electric nearly 12p on top of epg c17p/34/19p discounting for Oct22-Apr 23 cap periods. So far, Lab 5% vat cut only c£18 at last years use and current rates low £20s if df cap 25% applied to both fuels equally.

Bad Time to Start MVDD for some

Maybe the predicted rises are just making suppliers increasingly concerned about far more debt defaults given Ofgem measure already over £5bn - and not so much a past credit risk flag - but maybe an inferred disposable income risk. Given 2 of the cases pensioners - many on traditionally fixed and often low incomes. Who might otherwise struggle with starting mvdd at this time of year (no time to have "banked" savings vs annual/12 over the summer months to offset higher winter bills.) As for some spring a better time to switch to mvdd - to give time to do that "banking".

On mvdd if you have £400 for deposit, and if as one poster suggests that just cancels initial minths DD would sem strange (reducing say by 66 for 6m might be a better mvdd soft winter start) - ensures you have the savings by other means to cover initial months at winter premium payment amounts - that can easily be doubled normal annual/12 DD for some of us anyway.

Cap predictions from MSE chosen big 3 suppliers (updated periodically - this one 10 days ago now - before recent 230p gas spike for the £2154)

https://www.moneysavingexpert.com/utilities/energy-price-cap-prediction/