Switch and sting with adjustments

cerys_lane

I'm due my first DD from Fuse, after moving from OVO last month. I don't know how much it will be yet, so was playing around on the app, and if I want a fixed DD, they'll impose an adjustment of £1000 to what I'd been quoted when I switched or an extra £80+ per month. I've had my OVO rebate, but that's not the point.

Is this common practice now and why aren't companies more transparent about this when switching? Are the days of paying if off over summer long gone, and everything now conveniently has to align with their tax year

Brie

apparently this became a thing a couple of years back so that the energy companies weren't out of pocket if payments were too slow coming in. I wasn't pleased to find I had to be something like 3 or 4 months in credit all the time so switched to a variable DD so that I was always just paying what I've actually used rather than predictions plus extras. It does mean I'll be paying significantly more when the cold weather comes and the heating is on most of the day but I prefer that rather than giving a company a free loan.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/6684250/switch-and-sting-with-adjustments

I think Fuse are the only company that mandates monthly variable Direct Debit, they are quite clear about.

It is nothing to do with tax years and everything to with reducing exposure to debt.

QrizB

if I want a fixed DD, they'll impose an adjustment of £1000 to what I'd been quoted when I switched or an extra £80+ per month.

The simple solution, then, is not to choose a fixed DD and stick with the default variable DD?