Energy Prices (Strictly NO referrals!)
- Thread starter DXP55
- Start date
There's a discount for paying by DD.
Yep the only way round it is variable DD, but anyone in debt may not have that as an option, also I think if too many go variable they make restrict the DD discount to fixed DD only, which would be a con.
Problem is now these companies have got used to this free lunch of people over paying DDs and not only that but also in advance.
Soldato
If you're paying by fixed DD then they expect you to keep it fixed - that's the whole point of it.
It's clear from the graphs you've shown that £200 per month won't be enough to cover your bills over the next 12 months. Ovo have a responsibility to set your DD to the right amount based on annual usage - which it looks like they've done accurately.
It's clear from the graphs you've shown that £200 per month won't be enough to cover your bills over the next 12 months. Ovo have a responsibility to set your DD to the right amount based on annual usage - which it looks like they've done accurately.
It looks like the extra £36 is reasonable, the account dips into dept over the next 12 months before breaking even this time next year when you start rebuilding for the following winter.
If you are still at -£400 next April, you’ll barely be back at £0 before the heating does on in October. £200 isn’t covering your projected usage over a 12 month period.
I don’t see the issue here.
Edit: too slow, as above really.
If you are still at -£400 next April, you’ll barely be back at £0 before the heating does on in October. £200 isn’t covering your projected usage over a 12 month period.
I don’t see the issue here.
Edit: too slow, as above really.
Soldato
The woman I spoke to yesterday pretty much refused to do anything about it, citing that it was a system they had in place to help their customers spread the annual cost rather than be faced by a sudden increase in their monthly DD. I didn't get anywhere with her trying to have the DD reduced.
You are probably right, which is even more annoying. They have got you by the danglies I suppose.
That's shocking m8, you must be fuming about that increase!!
Part of the T&C's of the fixed rate deal is you must pay by direct debit. Although when we signed up on the phone they either didn't mention this DD review/check every quarter or if they did I can't recall it as it must have been a cursory few words. I do however now gather it is standard practice.
Good point. And I presume they earn interest of my surplus when its sat in their corporate bank account. My partner is selling her old place and her energy company are refusing to return the £640 she is in credit for at the moment until the house sale is finalised and the final meter reading is taken. The house is empty right now!!
Soldato
As I said, I get that. But what my issue is why can't I have control over the direct debit amount and pay an increase as and when its required? Rather than them hike it now when I'm about to start using even less energy for a number of months? If its based on annual usage I'd expect a request to increase the direct debit as and when I start using more energy, not now. And we've been in the house for less than three months so quite how they can estimate our annual usage as yet I don't know.
That said, I guess I'm lucky I'm not in the same boat as Blackjack Davy with a huge increase.
Associate
You've let your account slip into debt immediately after joining the company, so I don't think it's too unexpected that they want to increase this. The payments haven't been all that well managed IMHO.
I think for the level of control you want you'd be better off with one of the suppliers that offer the ability to pay via DD but on receipt of a monthly bill. Sounds ideal for what you're hoping to achieve. Nothing to worry about with under/over paying then.
Associate
I'm hopefully completing on a house purchase in the next month or so, but the house has a pre-pay token meter which I understand is even more expensive.
Not looking forward to trying to sort that mess out..
You should be able to ask them to change it once you move, though how long that takes right now...
That said, I think on the current price cap, the difference between the DD cap and pre payment cap actually isn't very much at all, a few percent at worst. It's more problematic when cheaper deals are available to switch to, but you should have it sorted before that comes a possibility again (hopefully!)
Soldato
I fully agree, when we were on the variable rate when we first moved in at the very end of January I presumed since we had a smart meter that we were paying for exactly the amount of energy we were actually using every month and the amounts we were asked to pay monthly when we were billed reflected that. I can only assume they didn't get their sums right so yes - they haven't managed the payments particularly well.
I may consider that option.
Soldato
That's not how it works. Most people want to pay the same amount every month so they work out your annual cost and divide it by 12 to get a monthly amount. (or estimate your annual cost based on house size, previous owners usage, etc).
Yep, you are one of the lucky ones who managed to get on a fixed tariff at the right time and avoided a large increase. That increase has nothing to do with how direct debits are calculated though.
The wholesale price has gone up so it's going to cost more to buy regardless of your DD setup.
My monthly bill almost doubled this month but when I got the new DD amount suggested by Octopus it was only £6 higher than what I had calculated myself. I'm not particularly happy with the increase but I don't feel at all like my supplier is trying to con me with the new DD amount.
Soldato
I must admit there are times I wish we could return to the days of quarterly bills in the post and buying savings stamps to offset the hit a little bit. Of course instead of being £2 or £5 stamps, at the crazy now prices would have to be £20 or £50!!
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So gas prices are down by 22% today, going to assume we won't be seeing any associated drop in what we pay.
Soldato
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While I'm still on a fixed rate, my usage has gone up (I didn't have an electric car when I started). I'm in debit by around 230 quid, but my dd is about 90 a month so it's unlikely that it will ever cover it. I'm with outfox the market, does anyone know if they up the dd automatically? I had a look on their website but it wasn't really clear. I could make a one off payment, but I'd rather increase my dd at the same te otherwise it will just happen again.
Yes your DD increases automatically (usually 6 monthly) once your supplier performs a periodic check of your usage. If you are unsure what would cover you, switch to whole amount monthly DD so you pay for what you use instead of guessing.
No chance, its already below the wholesale price.
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You can pay quarterly, just tell them that's what you want to do. My parents have always paid this way. Too many let the supplier dictate the patent terms, it's not how it works, withhold payment until they set it up the way you want.
Pretty sure a big part of the DD agreement is that both parties agree to it, so if the payment isn't what you agree to cancel it phone them up and agree a new one.
Depending on the company, they won't allow you to do a quarterly bill anymore, I know EDF don't. Its not something they can offer in any format (cash cheque or DD)
OVO tried to put my DD up because of their bad estimation of my electricity use so I just cancelled the DD and 2 days later I could create a new DD agreement for whatever amount I wanted on the website.