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My energy direct debit has more than doubled before price rises. Anyone else?

15 replies

EnergyShock · 09/02/2022 07:10

I’m currently over £700 in debit with my energy supplier. I adjusted my direct debit around 3 months ago where they (my supplier) set the amount to cover my usage (clearly too low!) and added a payment plan to clear the arrears which was only £300 at the time.

After adding meter readings last month the arrears jumped to £500. Adding meter readings 2 weeks later and it is now £700. I don’t understand how it is so high as I use as little as possible.

My direct debit has just increased to over £300. This is before the energy price rises. I feel sick.

I’m disabled and rely on benefits to live. I don’t qualify for the energy hardship grant funding.

I hate this government right now; their support packages are a slap in the face. Is anyone else in the same position?

OP posts:
MichelleScarn · 09/02/2022 07:13

We are the same, what's to stop them doing this constantly? Oh actually you've not been paying enough... now you owe us £376 a month then now it's £400 etc etc

EnergyShock · 09/02/2022 07:19

@MichelleScarn are you in debit? How much is your monthly payment if it’s ok to ask?

They definitely will continue this; I very much doubt they’ll ever pass on price reductions to customers.

OP posts:
OnTheBenchOfDoom · 09/02/2022 07:25

It is also winter time where you will use more electricity and a lot more gas so direct debits are calculated on the average that you use. You should, in theory, build a credit in summer which gets used up when you go into the winter months.

It is usual that "debts" are built in winter but I think most people are just very aware of them these days. Prices have risen so the debt seems even higher as there haven't been enough direct debit payments to counter the deficit.

My advice would be that if the direct debits become too high for you, change it to a standing order which you control rather than them and say you will address the situation toward the end of summer when the winter debt has come down a bit. It is a million years ago but I used to work for a national energy company. The company has a responsibility to not allow people to get into debt.

We used to take meter readings every month and put them into a spreadsheet, it allows us to see consumption not just cost. Your consumption probably hasn't changed much just the cost of gas and electricity is now so high.

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MichelleScarn · 09/02/2022 07:28

We're apparently £179 in debit, were paying £110 a month in Oct, jumped to £155 for Dec then £189 for Jan and will apparently go to £250 in March again before the April rises. Sorry for adding my gloom to your worries but its scary.

MichelleScarn · 09/02/2022 07:29

change it to a standing order which you control rather than them and say you will address the situation toward the end of summer when the winter debt has come down a bit
Thanks @OnTheBenchOfDoom I'm going to call and look at this!

crossstitchingnana · 09/02/2022 07:31

The energy companies seem to be grabbing what they can because they know come April many won't be able to pay. We are lucky in that we are £100 in credit but they seem reluctant to reduce our DD payment.

IWasHotInTheNineties · 09/02/2022 07:32

Mine is £316 a month. For a new build and I owe £1900. I don’t know how. It’s scary.
A couple months ago I paid £120 a month.

MsMeNz · 09/02/2022 07:35

Same. Give or take my monthly was 220 and now it's like 360 or something similar to that. Was a shocker. We do have a big house and family but the jump is massive. Really having to rethink heating and things so get the monthly amount bown.

We could have saved 10 pounds going to the lowest offer I found but I liked out supplier we have and I don't believe in going with the lowest offer rather track record of customer support, their online app etc.

ThatsMe123 · 09/02/2022 07:36

Prices have already gone up massively compared to last year. Sad
I just looked at my month to month use this year compared with last and in terms of kwh I'm using less but in terms of price I'm using nearly twice.
I'm with bulb, who are one of the suppliers that have gone bust.

OnTheBenchOfDoom · 09/02/2022 07:53

@MichelleScarn you usually have a "settlement quarter" where you "settle" any outstanding amount but it was automatically calculated to be taken and it was on the bill. We would inform customers of this when setting up Direct Debits. So the system looks at the last year of usage, what you have paid and adjusts it either by refunding you (rare and had a minimum limit) or taking an increased one off direct debit and possibly needing to up your future direct debits.

Changing to a standing order should not have any impact on any "direct debit discount tariff" plan as you are still paying monthly. I have threatened this in the past when utility companies tried to tell me to increase my direct debit when I can work my own bills and usage out and I could say when have I ever used X amount of energy whilst with you? Shitty parameters within they system.

However, energy prices are rising but this can give you some control if you are struggling. Tell them you are struggling too, I assume they are inundated with people telling them that. If anyone is disabled tell them that too, it means you are probably unsuitable for a prepayment meter if you are restricted in accessing the meter or obtaining payment for the meter. Like I said it feels like a million years ago that I worked there. We were a local company before the market opened up and we were bought out by a national company.

Also the big direct debit drive is always quarter 1 when the bills are the highest, so hey want to pay this whopping £400 bill just after Christmas or would you like to spread this £400 across the year with our monthly direct debit payment plan? We always had a huge uptake Grin

BarbaraofSeville · 09/02/2022 07:58

What tariff are you on and what is your annual usage?

There has already been a big price rise in October last year and, from your supplier's point of view, you're just getting behind faster and faster.

I know you're in a difficult position and I don't know the answer, but the only thing I can suggest is looking again to see if there is anything that can be done in terms of grants for energy efficiency, or an affordable repayment plan, ie one that doesn't take too much of your income for utilities leaving you unable to buy food.

www.moneysavingexpert.com/family/housing-and-energy-grants/

What's your housing situation? Own or rent, and is it just you or a partner/DC? Is there any chance of moving somewhere smaller and/or with better heating where you can use less?

lunar1 · 09/02/2022 09:02

I fixed mine in September, but compared to this time last year my bill has gone from £130 to £250.

JuliaMumsnet · 18/02/2022 12:08

Hello. Popping in to let you know that we're doing a Q&A with fuel poverty charity National Energy Action about these energy price hikes on Wednesday 23rd Feb at 12 noon. The thread is now open for questions here.

MrsPear · 18/02/2022 13:02

Stop paying monthly. Instead have a smart meter fitted. Check each week / month how much the usage is and pay that into savings. Then pay quarterly.

PineappleWilson · 18/02/2022 13:11

Not all suppliers are providing smart meters though. several companies were waiting to be in the 2nd generation roll out, so haven't offered them to their customers. We've never managed to get one. Avro said no, but we're with Octopus now and have asked for one so fingers crossed, but it's certainly not as easy as your post makes it sound @MrsPear.

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