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Original poster

What should my energy account balance be at this time in the year?

41 replies

Hayliebells · 27/02/2023 16:35

My energy provider (Octopus), persistently tell us that our direct debit is too low. They have a model on their website, which predicts what your account balance will be going forward if you pay different direct debits amount a month. They suggested we needed to pay £100 more a month than we are now, and that if we stuck to our preferred direct debit amount (we can decide it, up to a point), we'd be £1.5k in debit by this time, even taking into account the £67 a month from the government. So here we are, at the end of February, and our balance is -£150, and that will be covered when we pay the direct debit in a few days. Am I right in thinking that their "predictions" are a pile of doo doo? The weather will be getting warmer, we've had the worst of the winter, and we won't be using half as much gas over the next 6 months, and we'll be building up a lot of credit for next winter. I just don't believe that we need to be building up the sort of credit that Octopus think we do. I'd completely agree that we weren't paying enough IF at the end of winter we had a massive debt, but we don't, so I just do not get their reasoning. What's a normal sort of balance to have on the account at the end of February?

OP posts:
Elieza · 27/02/2023 16:42

It used to be that we were allowed to rack up a deficit over the winter and clear it off during the summer.

Now they want us to overpay all the time so there is a credit all year round. (And then winge about giving us it back if we ask)

I guess the tens of millions of profits isn’t enough for them.

debka · 27/02/2023 16:44

I've got the opposite issue with Octopus. I prefer to have some credit built up and they tried to reduce my DD. I'm currently in credit by £293. I am aware that the govt support is ending soon as well, so am keen to have some in the bank, as it were.

NewBootsAndRanty · 27/02/2023 16:45

I think octopus prefer you to have a month's worth of credit on your account opening anniversary.

I pay by variable direct debit now.

TimeForMeToF1y · 27/02/2023 16:48

There's no such thing as a normal balance, everyones situation is their own, nothing to do with what anyone else does

Original poster
Hayliebells · 27/02/2023 17:13

TimeForMeToF1y · 27/02/2023 16:48

There's no such thing as a normal balance, everyones situation is their own, nothing to do with what anyone else does

I guess I mean relatively speaking, so debit Vs credit, and if credit, then how much as a % of annual spend, for example.

OP posts:
Original poster
Hayliebells · 27/02/2023 17:15

NewBootsAndRanty · 27/02/2023 16:45

I think octopus prefer you to have a month's worth of credit on your account opening anniversary.

I pay by variable direct debit now.

Ah, it's interesting as that's pretty much what we'll have I think. Despite their attempts to increase it! Isn't the cost supposed to be coming down, even with the removal of the government support, as wholesale prices have dropped massively?

OP posts:
UsingChangeofName · 27/02/2023 17:16

Where you are sounds about right to me.
At the end of Winter, I would say the ideal is to not really have debit or credit. Then you start to build it up over the warmer months.

Of course, keep in mind there are more price rises due despite massive profits being made by energy companies and despite the cost they buy at having dropped plus the £67pm Gvmnt subsidy is about to run out.

Original poster
Hayliebells · 27/02/2023 17:17

Or scrap that, no it's not, we'll actually be massively in credit on our account opening anniversary. Hmmmm.

OP posts:
Original poster
Hayliebells · 27/02/2023 17:19

Thanks @UsingChangeofName, we'll keep things as they are, and see what happens. But, if we are loads more in credit this Autumn, compared to where we were last Autumn, I'll be asking for some of it back! I'm certainly not going to put the direct debit up to what they tell me it should be, unless I have absolutely no choice.

OP posts:
NewBootsAndRanty · 27/02/2023 17:22

Hayliebells · 27/02/2023 17:15

Ah, it's interesting as that's pretty much what we'll have I think. Despite their attempts to increase it! Isn't the cost supposed to be coming down, even with the removal of the government support, as wholesale prices have dropped massively?

Show quote history

Kind of..
Bills are going up in April when the price guarantee is removed and the cap changes, then predicted to go down again in July/October.

I managed to switch to the Tracker tariff (based on wholesale prices) before they added a waiting list - if they're still offering waiting places for it I'd recommend signing up.

forwardsandbackwardsandup · 27/02/2023 17:25

We're pretty close to zero right now, I think £15 in credit having built up a bigger credit over last summer when they put the DD up before the prices increased and then ran it down over winter. I'm quite happy to be in this position although worry that we should be paying a bit more over the coming summer to make up for next winter.

dementedpixie · 27/02/2023 17:29

My current balance is +£180. Our direct debit is £220 which has been topped up by the government £67 (so a total credit of £287). Our usage the last 2 months has been £360-£380 for combined gas and electricity.

The £67/month will only be paid until March and then prices are supposed to rise again in April. I prefer to have a small credit balance rather than be in debit.

dementedpixie · 27/02/2023 17:32

@Hayliebells how does your usage compare to your direct debit amount? I assume you give your monthly meter readings and can see if your Direct debit is in line with what you are using

TheHobbitMum · 27/02/2023 17:33

We are with Octopus have a ridiculous credit balance at the moment (£1000+) but I'm thinking of doing what's been suggested up thread and always having a full month's credit and just that available.

dementedpixie · 27/02/2023 17:39

@TheHobbitMum have you requested a refund or are you reducing your direct debit for a few months?

zestysparkles · 27/02/2023 17:40

We are 500+ in credit, have hardly had the heating on though. I don't know, I just feel more comfortable knowing it's there with the impending rises.

Okunevo · 27/02/2023 17:42

My ideal is just under £40 according to Octopus as I just requested a refund and that's what they have allowed me to take it down to. I won't be overpaying this year going forward, I will be keeping my dd at what they currently suggest despite the 20% rise, as it will more than cover my summer bills and prices may drop by winter.

TheHobbitMum · 27/02/2023 17:49

dementedpixie · 27/02/2023 17:39

@TheHobbitMum have you requested a refund or are you reducing your direct debit for a few months?

I think I'm going to ask for the refund, as its coming to spring now our usage will drop right off

Original poster
Hayliebells · 27/02/2023 17:54

NewBootsAndRanty · 27/02/2023 17:22

Kind of..
Bills are going up in April when the price guarantee is removed and the cap changes, then predicted to go down again in July/October.

I managed to switch to the Tracker tariff (based on wholesale prices) before they added a waiting list - if they're still offering waiting places for it I'd recommend signing up.

Show quote history

I think we're on a tracker tariff, it's definitely not fixed anyway.

OP posts:
Original poster
Hayliebells · 27/02/2023 17:56

dementedpixie · 27/02/2023 17:32

@Hayliebells how does your usage compare to your direct debit amount? I assume you give your monthly meter readings and can see if your Direct debit is in line with what you are using

We have a smart meter, so the readings are taken automatically. It's difficult to work out if our direct debit is in line with what we're using (at least for me), as obviously over the summer we use loads less than the direct debit, then over the winter we use more. How do you work it out?

OP posts:
NewBootsAndRanty · 27/02/2023 17:56

If you're on tracker you should be paying under around 25p/kwh for electric and 7p/kwh for gas today, depending on region.

Most people and suppliers are standard variable rate at the moment.

Original poster
Hayliebells · 27/02/2023 17:58

TheHobbitMum · 27/02/2023 17:33

We are with Octopus have a ridiculous credit balance at the moment (£1000+) but I'm thinking of doing what's been suggested up thread and always having a full month's credit and just that available.

That's insane. Why would you need a credit balance that high at the end of winter? I'd definitely ask for a lot of that back!

OP posts:
NewBootsAndRanty · 27/02/2023 18:01

To work out your usage, look at how many kwh of each fuel you use in a 12 month period and multiply by the unit rate charged - divide that by 12 to work out your average spend. Don't forget to take price rises into account.

You should be able to see yearly/monthly/weekly etc breakdowns online.

Okunevo · 27/02/2023 18:01

I think some people's dd may have been set before the price guarantee was announced, so based on much higher prices this winter, that plus most people will have cut back on their usage.

simbobs · 27/02/2023 18:02

I would expect to be in deficit at this time of year as usage is obviously higher than it will be later on. We have been with our supplier for just over a year and they don't seem to have taken into account the fact that we have solar panels, so use almost no electricity in the summer months. They asked us to increase our monthly payments which we did as we knew that they were too low, but we are still £987 in debit as we have not reduced our usage by much. I am not going to increase the direct debit, though. I will wait and see what things look like in July or August then just pay off the amount outstanding.