£400 energy - deduction from DD??

[mynameischloe]

Can someone please explain this to me, I'm with EON.

I've just logged on to submit my meter readings as usual, I normally pay £100 per month direct debit but I submit my readings every month so the usage/credit is accurate.

It now says my direct debit will be £33 this month. How is this crediting me £67 when I'll still have the pay the same amount for my usage? I understand I'll have the extra £67 in my bank account but the usage will still have to be paid for? I'll now just be £67 less in credit.

I don't understand!

Its your government credit. Did you somehow miss this?

No, I know what it is, I just don't understand why they've done it the way they have.

It's not crediting me anything, it's just lowering my direct debit which doesn't actually help me when I'm still going to have to pay the same bill anyway. I'm still going to have to pay the same.

But you're not paying the same - you normally pay £100, but you'll only be paying £33 for the next six months.

You're only paying 33 of the 100 though? The government is paying the rest so that is crediting. You can manually pay 100 if you still want to

You are saving your actual cash as the government has already paid £67 towards your energy.

But if my usage is still the same, for easiness, say my exact usage came to £100, and my direct debit is now £33... where's the £67 coming from that I need to pay for my usage?

The government had already paid for it.

But it doesn't say it's crediting my account with £67, it's reducing my direct debit by £67

Check your account statement it will show the credit against the amount owed

It doesn't matter how they do it. You are still receiving the £66 reduction. Whether it comes off your bill and you still pay £100 or off your DD, it is still the same net effect.

How is this confusing, the 67 comes from the 400

So they're going to reduce my direct debit AND credit my account? This is what EON is saying. Fixed direct debit customers receive the money as a reduction to their DD.

Bill is £100
Government give Eon £67
You give Eon £33

Outstanding bill = £0

The £66 will appear on your account. It doesn't just disappear.

Of course, otherwise you won't save anything

The government has paid £400 to the energy companies for each household.

The energy company uses this to reduce your bill by £400.

Say you use £100 a month this winter - Oct-Mar = £600.

You will only need to pay £200.

So your direct debit has been reduced from £100 to £33 for the next 6 months.

Yes when when government give eon your £67 Eon will credit your bill, just like they credit it when they receive your DD

It is crediting your account which is why they are reducing your direct debit. Both.

Our usage actually is around £100 and we are still on a cheap fixed so we are still paying the £100 DD so we accumulate some credit for when our tariff goes up. You don’t have to
reduce the DD if you don’t want to.

But if they reduce my direct debit, i still have to pay the same amount for usage?

For example for easiness-

£100 direct debit
£100 usage
= nothing owed

Now
£33 direct debit
£100 usage.
I still have to pay the £67 owing?

Whilst I don't quite understand your question we are with eon and our DD has also reduced to less than what we currently pay due to the £67 rebate. However, given that energy prices are also rising I've decided to up my DD so that after the £67 reduction so that I still pay what I was paying before. I would rather end up in credit after the winter and get credit back then than risk ending up in debt and having to pay more later.

I know- hence my confusion.

Nowhere on Eons website does it say the government will credit my account with £67, it simply says Eon will reduce my DD.

I don’t understand how you can’t understand even though it’s been explained by posters several times.

No, OP, you aren't understanding. The £66 gets credited to your account. It says in your screenshot it comes off your bill.

I really wouldn't worry about it. The main thing is that you'll pay £400 less than you use over the next six months.

It says in the screenshot you posted!

'You'll see a discount of £66 applied ...'