Switching question

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waterman3
waterman3 Posts: 469 Forumite
in Energy
I switched energy supplier a couple of weeks ago (dual fuel) and the switch date is 9th june. The new company is taking the first direct debit off my account any day now.

I've also got my previous supplier taking their direct debit off this month too - so I'm paying both direct debits in the same month. Is this normal? I'd have thought the new supplier wouldn't take their first DD until next month.

I feel like it's been a waste of time switching as any saving has been eaten up by paying 2 DDs in the same month.

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  • System
    System Posts: 178,094 Community Admin
    Photogenic Name Dropper First Post
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    waterman3 wrote: »
    I switched energy supplier a couple of weeks ago (dual fuel) and the switch date is 9th june. The new company is taking the first direct debit off my account any day now.

    I've also got my previous supplier taking their direct debit off this month too - so I'm paying both direct debits in the same month. Is this normal? I'd have thought the new supplier wouldn't take their first DD until next month.

    I feel like it's been a waste of time switching as any saving has been eaten up by paying 2 DDs in the same month.

    Yes, it is now normal for small suppliers. All suppliers pay their wholesalers in advance of supply. They can avoid Bank borrowing, and give you lower-than-might be prices by asking for the first payment in advance. You are not paying for the same energy twice. DD payments are nothing more than payments made on account from which charges are deducted. There is no question of any savings - if there are any at a time of rising prices - being eaten up. It follows that if you signed up for £600 worth of energy, and you use only the estimated amount, you will only pay £600.

    Any overpayments to your old supplier will be returned after your Final Bill is raised. This can take up to 6 weeks from the date of transfer.
  • justwannabeloved
    justwannabeloved Posts: 136 Forumite
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    Yes, I had this when I switched. I was then returned a small refund from my old supplier once my final bill was finalised. Hope this helps.
  • RandomQ
    RandomQ Posts: 221 Forumite
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    Why is it that a multibillion pound corporation gets to keep your money for 6 weeks but if you are 6 weeks late paying a bill they throw a hissy fit and mess up your credit record?

    Wouldn't it be great if WE could enter data into a database that affects their ability to get credit.

    I never pay upfront, never do DD anymore, give me an accurate bill for something I have actually used and I will pay it in 24 hours.
  • zagfles
    zagfles Posts: 20,323 Forumite
    First Anniversary Name Dropper First Post Chutzpah Haggler
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    Why is the previous supplier still taking a DD? They should have sent you a final bill which says what you own them or they owe you. Have you had that yet? Or is it the final bill they're taking by DD? It shouldn't be your previous usual DD.
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