Fixed tarrif Gas/Electric but confused whats going on

tjmaggots · 13 April 2019 at 12:36AM

Hi
I switched from being a long term PAYG user to a fixed rate monthly DD plan with a new supplier as it appeared I would get a better deal. However I am confused as yes I am saving about £20 a month or so (Previously I was paying approx £30 a week on both now its a DD for £98 a month) but I have just had an email telling me

Thanks, we've used your direct debit ******-******** to complete a £98.00 auto-payment for your Powershop account. The actual payment will come out of your bank account by Monday 15 April 2019, depending on your bank's processing times.

However, there's still £139.21 left to be settled on your account. As per our fixed payment arrangement with you, on Friday 10 May 2019 we will submit the direct debit request to the bank for £98.00 of this. The actual payment will come out of your bank account by Wednesday 15 May 2019, depending on your bank's processing times.

I'm really confused.
I thought a fixed rate plan meant I didn't have any other bills to worry about. Am I going to wind up with some large bill at some point?
I also had recently my winter warm payment payed to the company and that just got sucked up into some money owing pot, rather than reducing my bills.
On my old PAYG system I usually was able to use that to cover almost 6 weeks of usage

I'm sorry this is a bit of a long post but would really appreciate any help or advice you may be able to give

dogshome · 13 April 2019 at 7:26AM

A ' Fixed ' tariff means that the price of the Gas & Elec Kwh you use will not increase over the term of the contract , which is usually a year and can be longer.
However, it does not mean you can use any amount of Kwh you like and still pay a fixed amount.
If Tesco were to offer Baked Beans at tuppence a can it would be a bargain, but buy 50 cans and it will cost £1

Your D/Debit figure of £98 was based on an Estimate and is not enough to pay for what you use in Winter, but in Summer with the heating off it will probably show a Credit on the bill

frugalmacdugal · 13 April 2019 at 7:34AM

Hi,

and remember to supply regular meter readings, was the deficit based on an estimated reading?

PaschalFun · 13 April 2019 at 10:05AM

tjmaggots wrote: »

...
I thought a fixed rate plan meant I didn't have any other bills to worry about. Am I going to wind up with some large bill at some point?
...

If you use more energy than you are paying for, yes.
If you use less energy than you are paying for, then ultimatey you will get a lump sum refunded.

So if you want a lump sum refunded, either use less energy, or pay more per month :money:

Here's a useful MSE article that may help you further
https://www.moneysavingexpert.com/utilities/lower-energy-direct-debits/

G_M · 13 April 2019 at 9:52PM

tjmaggots wrote: »

Hi
I switched from being a long term PAYG user to a fixed rate monthly DD plan with a new supplier as it appeared I would get a better deal. However I am confused as yes I am saving about £20 a month or so (Previously I was paying approx £30 a week on both now its a DD for £98 a month) but I have just had an email telling me
So is your £98 per month enough to cover the amount of gas and electricity you are using?

Thanks, we've used your direct debit ******-******** to complete a £98.00 auto-payment for your Powershop account. The actual payment will come out of your bank account by Monday 15 April 2019, depending on your bank's processing times.
OK - so they are taking £98 per month.

However, there's still £139.21 left to be settled on your account.
Have you checked your account?
How much gas have you used?
How much electricity have you used?
Is this based on actual meter readings?Or estimates?

As per our fixed payment arrangement with you, on Friday 10 May 2019 we will submit the direct debit request to the bank for £98.00 of this. The actual payment will come out of your bank account by Wednesday 15 May 2019, depending on your bank's processing times.

I'm really confused.
I thought a fixed rate plan meant I didn't have any other bills to worry about.
You misundrstood. The fixed rate plan meant the price per unit of gas/electricity is fixed. It cannot increase. But if you use more gas, naturally you will get a bigger bill!

Am I going to wind up with some large bill at some point?
Yes - if you use more gas or electricity than estimated.
If you want lower bills, use less gas!

I also had recently my winter warm payment payed to the company and that just got sucked up into some money owing pot, rather than reducing my bills.
I'm not sure what this is how it works, but I assume it was creditted to your account, so reduced what you owe. You monthly DD however will not change unless/until your payments balance your usage, and you agree a new monthly DD.

On my old PAYG system I usually was able to use that to cover almost 6 weeks of usage

Want lower bills? Use less gas and electricity. Eventually the monthly £98 will cover the bill. Use even less gas/electricity and you'll be in credit and can ask the compant to reduce your DD to, say, £88 instead of £98. But it is your actual useage that determines what you need to pay./

Want to be cosier? Have more and bigger hot baths? You;ll use more gas so eventually have to pay, say, £118 each month instead of £98.

your choice.

Fixed tarrif Gas/Electric but confused whats going on

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