In a possible pickle with my energy supplier

[SpeedbirdSquawker]

Last weekend I enquired with my energy supplier whether it would be beneficial to set up a direct debit as I am in arrears (only a small amount, just under £150, and i'm struggling to pay it this month. The agent said that it would be beneficial and I got the impression that the amount they quoted to me to be the amount each month would include the arrears. However, after giving the agent my bank details and her going through everything, which took ages, she then said about now sorting out the £150 still owed. I got the impression that this was included in the direct debit amount and was totally overwhelmed by this point (I have extreme anxiety anyway) and asked her to cancel the direct debit arrangement and that I no longer wanted to go ahead. She went off for a few minutes, came back on the line and said that the direct debit had been cancelled. She then confirmed this another few times before we ended the call, however, checking on my banking app this morning, I can see that indeed a direct debit has been set up, which I have cancelled with my bank. I have also messaged the energy supplier. Will me cancelling the direct debit instruction on my banking app definitely stop the payment from coming out later in the month? The amount quoted was about £60 more expensive than I usually pay anyway, but I thought it was taking into account the arrears.

Hi, is anyone able to clarify this please? I'm feeling so anxious over in incase the amount does come out and quite honestly I'll be financially in a mess next month if it does. Thanks.

A fixed direct debit would be higher than your current summer monthly bills as it would be intended to pay towards your winter heating too, to smooth out the bills over the year, before even taking into account the arrears. Sorry, I don't know if there is a risk they could take the money or not, I think it's 10 working days for you to change the dd but cancelling could be different.

Hello @EmeraldFox thank you for your post. Ahh, I see that's why they charge higher now. Makes sense.

If I have cancelled the DD with the bank though, surely it'll stop any money coming out?

It's always stopped the money coming out when I've done it.

If you've cancelled the instruction at your end it should stop it.

I'd worry you're only going to get yourself in more debt though if you're not paying them anything?

I would ring them back and ask them to cancel the direct debit, as cancelling from your bank only may cause issues. Are there any other options such as a smart metre so you can see your usage and then pay each month? Also, ask them to walk through a payment plan for the arrears and the different options, they should be able to agree something affordable.

If it has been a week since it was set up and you cancelled it, there is a chance that a payment can go out as if they have requested it before cancellation, there is nothing that will stop it. If it does come out, contact your bank and do a direct debit indemnity which will immediately reinstate the money to your account.
It will be higher though to account for higher usage in winter, plus if you are in arrears, what you have been paying clearly isn't enough, so you are going to end up even further in debt with it, so you need to be paying more. Is there any reason you haven't been making a higher payment if you were going to set up a direct debit to pay back the debt anyway?

Contact the British Gas energy support fund - they may be able to help with a grant even if you're with another supplier. www.britishgas.co.uk/energy/british-gas-energy-trust.html

Thank you for all your advice.

I have been paying based on usage per month which has worked well, but this month I was really struggling to pay the amount. I'll be ok again going forward. I'm going to pay the amount that I owe very soon but I am hesitant to incase the direct debit also comes out and I'll be left struggling again.

Ah I see. Yes we did that. Then it got too much in winter so we won't to fixed direct debit. I think they will let you make one off payments too. I have an app for mine so if at the end of the month I have an extra £10 I can pay that off a bit quicker.