BRITISH GAS - Dont do variable direct debit anymore so you cant pay for what you use!

[Yankydoodledandy]

I've been on chat to an advisor for 30 mins - so I used to pay variable direct debit and would pay for what I used (gave meter readings) new platform they are using since November doesnt allow for this now. I can ring up and pay over the phone but the rate is higher and I will pay more. Totally crazy!!!

So this month I owe £57.00 this includes the Government payment BUT my direct debit is they are saying £110.00 per month. I want to pay what I owe - but I cant do this unless I ring up and then they charge more per unit.

They can re-assess every 6 months and if in credit they can "adjust" the payments BUT they are still taking more than they should - so annoying!!!!

You were always paying a higher rate. That part isn’t new.

It feels such a mess -
Nov Im in credit and am told no payments are due
Dec 28th - they take £132 from me
Now they say I owe £124
24 Jan - monthly payments will be £124

The fixed DD will be high to ensure you have paid enough over the winter period where usage is usually much higher.

You are correct that the variable amount tariff rates are higher than the fixed DD tariff rates. That's to try to persuade customers to stick with the fixed DD which is better for British Gas than it is for you. If the balance is higher than a certain amount (£500? Or at least it was, might be higher now with price increases) you can get that money back. Not helpful of course if you need the money monthly and not when you've built up too high a balance with BG.

Well it’s a mess because you’re insisting on paying for exactly what you use after you have used it. No one uses the exact same amount of energy every month because of seasons.

You’re better off on a set a direct debit that closely approximates your annual usage divided by 12. (annual usage is relatively stable).

Every year the company reviews and adjusts the direct debit so you’re not too much in credit or debit at the end of each year.

No matter what rate you are on, you only ever pay for what you actually use. You don’t need to submit monthly meter readings and pay exactly what you used that month to only pay for what you use.

Being on a variable rate with no set direct debit has you paying a higher cost for your energy because you’re causing more admin headaches for you and the company.

We use British Gas and pay for what we use so a variable direct debit
give a reading every quarter

I had no idea that you pay more for variable and paying for what you use

That's to try to persuade customers to stick with the fixed DD which is better for British Gas than it is for you.

Its better for both customers and company. Your fixed DD doesn’t pay for everything you use in Jan/Feb/Mar and so in Apr/May/Jun you are paying back what is essentially an interest free loan of energy. In Jul/Aug you are paying a bit extra to cover the higher usage in Nov/Dec.

Result is you have surety your energy bill will be a fixed DD every month. The algorithms calculate and adjust the DD annually based on your actual usage so you don’t get massively in credit or debit.

You still only pay for what you use and you get charged a lower rate! What’s not to like?

You do understand that no matter what payment set up you choose, you are always only paying for what you use?

There’s never a situation where if you pay say £200/mo DD but used less that you would not get a credit rolled over towards the next months usage.

We are still on variable direct debit with British Gas- enter meter readings on line and make payments for what we have used. We have continued to pay as normal since November so they can very much still do this without having to ring up and pay over the phone(The rate per unit is higher yes than the tarrif paying fixed amount- but it always has been).

That's an opinion. It's clearly not what the OP wants to do though. The issue is that you can have a pretty large amount of money on your account whilst still paying a larger DD than you need, for several months until BG do a review. And then you still may not agree with the amount being set. That deprives you of cash you might need on a short term basis.

@MostlyHappyMummy I used to do it this way but they dont do variable now - double check with them as this is how this all came about with me when they took out a huge amount!

We always pay for exact amount used and pay a higher tariff for the privilege sadly. It has always been that way.

When I looked into paying by direct debit, Scottish Power wanted to charge us £350/month.

Our winter monthly bills are still only just touching £160, so paying more than double that every month would be utterly ridiculous (and for us currently unaffordable).

The rate is not higher it's nonsense

I'm with BG and I pay quarterly for what I have used and I have double checked with two friends bills who pay DD and bother the standing charge and the price per unit is exactly the same.

Just cancel DD and pay in the app monthly for what you have used.

I’m pretty sure the OP wants to pay the least for their energy usage possible. And the variable direct debit isn’t the cheapest way to go. In addition, certain turns of phrase indicated to me that they think they have to pay this way to only pay for what they use. It’s a common misconception, so you’ll forgive me for making sure they are under this mistaken impression.

You don't ..!!

The rates are the same.

This is why I don't use direct debit. If I'd did I'd save about £78 per year on a bill of around £2250 per year for combined gas and electric. It's not worth it. They send me a quarterly bill for what I've used and i pay it. I know when the money comes out of my account and how much, unlike direct debit, so I can budget more easily. If I have any savings it sits in my bank account, not the utility company's bank account.

Not usually. Most companies offer a discount if you pay both your gas and electric by direct debit with them.

Just ask them to generate a bill. If you have then used a lot less than you have sitting on the account they then adjust your direct debit downwards pretty much immediately.

Exactly.

Re the higher rate- when I did the fixed amount direct debit I was able to fix on a lower tariff rate and keep refixing every 12 months. Now on variable direct debit cannot do this so pay a higher rate (still working out cheaper as paying only for what is used not constantly ££s in credit).

@Snowflake2 so they tell you but I pay with BG

Standing charge 51.074p
Unit rate 32.767p

I pay quarterly by debit card after being billed for what I have used

My friends pays monthly DD nonsense and pays the same price as above.

Ive asked them about quarterly direct debit - Im on chat with them - apparently they are migrating all customers onto a new platform - I was migrated end of November/December and this option isnt available now.

Cancel you DD my sister did only recently.

They sent her letters stating you better reinstate it.
She refused.
She is now paying monthly by logging on and clicking the link for what she has used.

They cannot force you to pay DD.

But you wouldn’t? You’d question the DD and they’d lower it based on the data they have on your usage. Then you wouldn’t be building up £190 in credit every month.

by the way, everyone only pays for what they use the difference is whether you require to pay exactly what you use month by month or whether you pay exactly what you use as calculated over a year.

Sorry I think you have misunderstood. You can't pay quarterly by DD only by debit card by clicking link on line or calling up.