Massively in debit with energy supplier :(

[JMSA]

I'm with EDF for gas and electricity. Just before Christmas time, I asked them to reduce my monthly direct debit, as I was in credit by quite some way and it was an ideal time to save some money.
Tonight I thought I'd do some meter readings, just to check that everything was balancing out ok. For the first time ever, I'm in debit ... by nearly £500!
My current tariff is variable (I've only ever had fixed, but this wasn't an option at my most recent renewal time), but they have sent me an offer for a fixed tariff. Should I go for this instead?
I'm really worried. I've never owed them this much money before. For reference, I live in a Georgian 3 bed basement flat. Massive old radiators, mostly single glazing, newish boiler. My gas bill in particular is through the roof.
Thanks for reading

A fixed rate won’t help. It’s the unit price that is fixed and at the moment for most companies the variable tariff is cheapest. So fixed doesn’t mean a fix cost monthly it’s per unit.

Thanks everyone. Truth be told, I feel a bit daft. Finance whizz ex husband used to deal with this stuff, but now everything is on me.

I have just this minute increased it by £50 per month.

It will balance by the summer if you cut down on things (seasonal things like tumble dryer and heating). Now you’ve increased the DD try not to panic.

Agree with others it will balance out if you up it a bit now however if you think there is a chance it's wrong please call them.
I had a mess up when I had a meter reader knock on the door and he accidentally put the wrong readings in and I got a huge bill but they were incredibly helpful.

Well you should have a decent amount of credit going into the winter months to keep things in balance. We usually enter the winter with about 3 months worth of credit, which diminishes by March and builds up again over the summer.

Thank you everyone. Feeling a bit better now.

Don't have the heating on for the first time in a while (in Scotland). It's a bit chilly and the teens are moaning, but hey, we're still alive and well.

End of winter is peak debt time. Most people With have credit in September and debt around March, it evens out.

How much were you paying and how much did you reduce it to?

I had loads of credit as a very good fixed rate I’d been on only ended last summer. I took some of it back but my winter gas bills have been horrendously high. I’ve had to more than double my monthly payment and I’ll definitely be a couple of hundred in debt by mid Feb when I take my next meter reading so might make a one off payment too. Now the monthly payment is a lot higher it is probably more realistic based on current prices. Hopefully there will be a drop in prices at some point.

Hi op, i have 10 years expertise in the energy sector :)

£500 does seem a little high to have built up just over 2 months. However, this could mostly be your teens and clearly the single glazing won’t help.

Can I ask how much your DD previously was and how much you reduced it by in December?

PPs are right in saying the balance will be higher in the winter and balance itself out in the summer - but as long as you are paying enough.

I agree with a PP about not doing fixed right now. It’s definitely even been in the news a few times the past week that the unit rates are predicted to go down in April.

I would just urge you to double check on your last bill from November that the agent you spoke did actually use the readings you provided, in case that is the issue.

Totally normal to have some deficit after winter - if you thu k about it. It has to be like that to have a steady dd over the year. And it isn't about being in a variable tarrif - they have come down.

Look at your usage over a whole year from your readings and calculate on your current tarrif whether your current direct debit is around a 12th of your annual cost. If so, leave it, and it will balance out over the summer