Am I mistaken in being under the impression that utility companies need to inform you that they are increasing your direct debit? Or am I thinking of an upcoming legislation change that the toothless Ofgem are trying to introduce?
Utility Bill DD Increase
- Thread starter platypus
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I think the new legislation is that they have to give you 30days notice of any change in prices.
For DD, not sure as that's the point of DD that the amount they can take is variable?
But I have a feeling that under general T&C's they do already say we will inform you of a change in DD ( like with a utility co. when you pay a set amount)
For DD, not sure as that's the point of DD that the amount they can take is variable?
But I have a feeling that under general T&C's they do already say we will inform you of a change in DD ( like with a utility co. when you pay a set amount)
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After having a quick google around, the majority seem to say that they can increase it without notifying you because Direct Debit is a variable payment, otherwise set up a standing order as that's a fixed payment.
Although I guess it may also depend on the utility company aswell as some are saying that they have been informed of any changes.
Although I guess it may also depend on the utility company aswell as some are saying that they have been informed of any changes.
This, you should always know what payment will be taken either because it's a fixed amount or because you'll be sent a bill.
Aye I can't remember if its law or not off the top of my head. I'm pretty sure it's the case that Ofgem want to make it law, but some companies do inform you.
Annoying that it's been increased whilst I'm way under estimate too. Does anyone here pay utilities not by direct debit? The annoying thing being that the utility companies offer incentives for dd..
Annoying that it's been increased whilst I'm way under estimate too. Does anyone here pay utilities not by direct debit? The annoying thing being that the utility companies offer incentives for dd..
Well I was billed on the 1st of June for the quarter, and then they changed my direct debit payment on the 16th without notifying me - I've only found out because I'm hunting through my online account details to try and find out some information. This increase despite us being considerably below the estimated usage for gas and a bit below electricity..
I thought what of Ofgens new laws was an increase in minimum advance notice of prices changes. so you can change suppliers as that takes ~6 weeks to do and doesn't have anything to do with change of payment. If you're on an estimate it will often change a couple of times a year when either your or them check the meters.
It is also summer time, they will do some maths and you build up a buffer that you then spend in winter. If you don't build up this buffer, your bills will be massive. I wiped out a £200 buffer this winter that was accumulated throughout the year.
It is also summer time, they will do some maths and you build up a buffer that you then spend in winter. If you don't build up this buffer, your bills will be massive. I wiped out a £200 buffer this winter that was accumulated throughout the year.
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Soldato
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I had a bill double a few months ago, despite having not used any gas or electricity as I've been renovating the house. Phoned up and had the DD revert back to the original amount and got a refund. Wasn't too happy though :/
I never paid bills by direct debit until recently, I finally gave in due to the high costs now and as you say the discount for paying by DD.
But, I set my DD intentionally low so there is always a residual amount to pay at the end of the quarter, no way am I having the account sat in credit with them holding my money.
You'll have to check the terms of your actual contract but normal practice is for you to be notified in the bill prior to increased payment being taken.
Soldato
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I pay quartely i just shunt a bit monthly to my bills account and pay from that each time i get any bill why should they let me get into credit and earn interest off my money?
Recently ditched BT as they had the cheek to charge to £6 per quarter for admin charges i get bill and pay online how can they justify that?
Recently ditched BT as they had the cheek to charge to £6 per quarter for admin charges i get bill and pay online how can they justify that?
Regardless of OFGEN regulation over elec / gas price inceases, any company that amends your DD ( dates, payment values etc ) is obliged to give you at least 10 working days notice under the Direct Debit Guarantee scheme.
Complain bitterly, if you dont get anywhere threaten both banking ombudsman as well as ofgen.
PS they've not mentioned the increase in small print somewhere on your latest bill ?
Complain bitterly, if you dont get anywhere threaten both banking ombudsman as well as ofgen.
PS they've not mentioned the increase in small print somewhere on your latest bill ?
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It's necessary to have some kind of variable system, mobile phone contracts are a prime example, however with utilities I'm a little more skeptical. I can understand the logic of building a buffer during summer, but I feel it makes for an unbalanced relationship, there's not enough transparency and its open to abuse... whereas a mobile contract reflects your exact usage, utilities seems to have arbitrary increases based on what they think, gives them much more room for maneuver, cash flow issue? No problem, charge everyone an extra fiver this month.
Utilities companies can effectively use their customers as an interest free loan whenever they please. The customer gets nothing out of the deal...
Utilities companies can effectively use their customers as an interest free loan whenever they please. The customer gets nothing out of the deal...
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No I've double checked it in case I missed it. No mention at all of the increase.