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How much credit is sensible to have in gas/ele acc right now?

14 replies

pinkfondu · 24/06/2022 07:24

So with prices going up what is a good amount to hold in there and help to not worry about winter?

My dd hasn't gone out yet but I've just looked and I'm £600 in credit. My instinct is to take it out but should I leave it to help protect for the winter bills?

Each DD over the next couple of months should increase this as well do how much is too much?

I'm a single mum with 2 kids if that changes anything.

OP posts:
User354354 · 24/06/2022 07:26

If you can afford the DD I would be keeping it in. This winter is going to be harsh for many.

If you withdrew £500. Would it just get lost in your bank acc or do you need that money for food / essentials right now ?

User354354 · 24/06/2022 07:26

Also are you providing regular meter readings ?

pinkstripeycat · 24/06/2022 07:29

I was asked by my provider to put my monthly payment up from £140 to £200. I declined because we can’t afford it.
If I had it I’d definitely do it in preparation for winter.
I’d leave it there if you can. It might be a relief in the winter and one slightly less thing to worry about

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Mindymomo · 24/06/2022 07:36

I was paying £150 per month gas and elec, then it went up to £250 2 months ago. I am only £130 in credit now, but it’s going up again in October, probably another £80 per month, so I will hopefully be in more credit, but not a great amount. If you don’t need it, I would leave the credit there.

Darbs76 · 24/06/2022 07:43

I’d personally leave it if you can afford to, if not maybe take half?

UselessTrees · 24/06/2022 07:46

Don't forget you'll get another £400 credited in October. Seems like a lot to me to keep with your supplier rather than in your pocket, but I suppose it will all get spent eventually. I'm with Ovo and they pay 5% interest on credit balances so that would make it more worthwhile (I never seem to be in credit with them, though!).

BarbaraofSeville · 24/06/2022 07:48

£600 is a lot of credit and don't forget you'll have £400 added to your account before winter.

It depends whether you need the money now for other things, or to put into a savings account. Also, is the amount you're paying now likely to be enough, still too much, or too little once the prices have increased?

Your bill should have your annual usage on it so you can work out based on current prices plus the expected 40% increase in October what your average monthly cost will be .

If you need the money for essentials, or will save it, and are paying enough for when the price increases, I'd be tempted to ask for the credit back.

If you think you'll just blow the money, aren't really paying enough for the forthcoming price increases and will struggle if they want to increase your DD by a large amount early next year because you've built up a debt, it might be better to leave it in there and just keep an eye on things.

Ideally you want to be a couple of months in debt at the end of winter, so you can repay this over summer and start to get ahead in October/November, so when winter comes around again, you use up credit and build up a debt again at the end of winter. That way you keep up with what you need to pay, but you aren't constantly in a position where it feels like the energy company has loads of your money.

Louise0701 · 24/06/2022 07:49

Leave it in. We’re currently £720 in credit and it’s staying there. It’s going to be a long winter for many.

JuneJubilee · 24/06/2022 07:50

there isn't a 'correct' amount,but if you're not short for food or petrol (or any other essentials) I'd leave it there and let it accumulate a bit more too, it'll be a comfort in the winter when you want to out the heating on.

it'll get you 5/8ths of fuck all in a savings account etc.

Ithinkitsadoughnut · 24/06/2022 09:08

My dd is now 200 pm and it's recommended I have built up a credit of around 700/800 by oct/Nov based on last year's usage, to get me through the winter, if that helps.

Sirzy · 24/06/2022 09:12

Make sure your giving regular meter readings but if you can then I would leave it there. I am £300 in credit and I am hoping that means with the £400 my dd won’t need to go up over winter

MangoBiscuit · 24/06/2022 09:18

We opened an online savings account. Each month I pay the electic bill, and add the difference to the account. Get a tiny bit of interest, but it also means I have access to the money in an emergency. As it's not in my main account, I don't spend it.

Would that work for you OP?

Southwest12 · 24/06/2022 10:52

I was £93 in credit when EDF did my six monthly bill in April and they refunded me. First time in 14 years they've ever refunded a credit balance. They then wanted to increase my direct debit by another £20 and I'd already increased it by £20, so I told them no way!

I'm currently paying £100 a month direct debit and have used £30 a month gas and electric combined since I turned the heating off in April. So should be about £400 in credit when I move to the standard variable tariff in September. If they refund me in October I'll be very unhappy!

pinkfondu · 24/06/2022 16:38

I'll do some calculations and should really do a meter reading although did One fairly recently as got moved to edf when mine went bust.

I'd rather it was there than have my DD go up I think and I'd forgotten about the money coming.

Thanks all will have a think

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