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Incorrect, their aim is to make as much profit as possible. No need to rack up hundreds of credit despite what they claim. There is a risk with smaller companies, you won't lose the money but there may be a delay in getting it back - ask GB Energy customers.
Originally posted by Mr K
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Most people use 70% of their annual energy usage over the Winter months so I fail to see how, mathematically, the poster will have a huge credit balance in 3 months time given the proposed increase in DD payments is c.50%. What the poster won't have is a large debit balance. Energy suppliers pay for the energy that we receive in advance of supply so it isn't unreasonable that they look to manage their corporate debt. That said, I agree that some suppliers play the system.
As far as GB was concerned (and yes I was a customer at the time of fail), I found their DD management to be pretty good. The company failed owing me about £75. A week before they failed, I received an e-mail from them lowering my monthly DD payment for the remaining 6 months of my contract. I calculated that they had got it spot on. Winter switches are more of a challenge for the smaller suppliers than the larger ones as there is no credit balance to offset higher usage.