Variable energy DD showing as debt with CRA

Hi,

Not sure if this is in the correct place but here goes.

I pay my Gas and Electricity by monthly DD and have done for around 10+ years. and generally change supplier whenever my fixes deal comes to an end.

I noticed on my Credit-club report an entry from Npower which showed a debt against both my utility accounts. As I pay by monthly DD I thought it worked that you go in credit during the summer and debit (if over used) during the winter. My question is are they allowed to report the overuse as a debt? I joined Npower in Oct 2017 and was initially paying £98pm for both. In March they increased this to £136. I am billed Qrtly and the debt stands £382 (which is coming down by £132pm).

I have complained to Npower but they haven't come back to me and not really sure where else to go with this, so hoping someone might have experienced something similar on the forums?

Thanks,

Comments

  • simpson_77
    simpson_77 Posts: 117
    First Anniversary Combo Breaker First Post
    Forumite
    I have posted in the Energy section aswell...
  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    Its normal, unless you're on a pre-pay meter you're on a credit account. Pretty much everyone has one showing and it isn't going to make any impact on your credit as long as there are no entries for missed payments.

    Also we're only just out of the period where you have the heating on and it usually take a few months to get a positive balance up to cover some of the winter cost.
  • simpson_77
    simpson_77 Posts: 117
    First Anniversary Combo Breaker First Post
    Forumite
    I guess my question is, It's always been on my credit file but never shown a negative balance, except for the past 2 months, when there are plenty of other times when I would have been in the red! Plus, as I pointed out to Npower, they only showed the debt, not the balance when it was in the positive.

    Doesn't make sense to me
  • bengal-stripe
    bengal-stripe Posts: 3,349
    Name Dropper Combo Breaker First Post First Anniversary
    Forumite
    'Variable' DD will do what it says on the tin: they vary. Depending on your consumption the bill will be higher or lower at different months (or quarters) and the DD will collect some 10 days later whatever amount makes the balance of the invoice.

    You are on a 'fixed' DD where the amount stays the same each month and at the end of the year (in an ideal world) your balance should be zero. None of the energy companies I am using or have used in the past (that does include n-power) has ever recorded to a credit reference agency, so I don't know what the correct procedure is.

    But n-powers procedure would be in line the way banks report your current account: when you're overdrawn the amount in debt will be recorded, but when you're in credit the balance will be zero. After all they only record your debt and if there is no debt, the debt balance will be zero (however much your account is in credit will not show).
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards