Budgetting for winter bills with direct debits

[LIZS]

We've been in our house since March and set up dd's for £40 pcm for Gas and Electricity. Obviously with it then being spring/summer we went well into credit for Gas (CH was off) which they now want to pay us back (not even sure their calculation is right as they missed taking some intially and then took 3 months together).

Why is is so hard for them to realise that the reason we are in credit is that we are budgeting for the winter (obviously not yet knowing how much our usage will go up). If we accept it back now we'll only owe it again next time ! Can see how people can get into difficulties paying bills if they happily go along with this, as is tempting.

well you might end up in debit over winter, but your monthly payments will pay it back over summer, IYSWIM? i think this is how most people do it, it evens out over the year. Make sure they are doing account reviews.

ah so you're thinking of the year as starting now then making up the deficit in arrears. I was thinking of it the other way round , build up a credit now so you don't owe overall.

It depends when your "year end" is. The gas & elec companies have a year end for you, usually 1 year from when you moved in. This allows them to assess the whole year and calculate an average amount to pay per month. They would refund any over-payment or request the deficit to be paid and adjust your monthly payments accordingly.

I would not get a refund (I am suprised they are offering) and would wait until March. That way they have a much better idea of what your consumption is.

ALWAYS give a meter reading when they are estimated EVEN if it is relatively close. It is only a quick phone call and it means that when they calculate your monthly direct debit instalment they are basing it on your actual usage.

Hope this helps. (former electricity company debt collector -cue scary music )

Thanks Fizzy that is what I thought too, gvie us a full year then rebate if needs be . Took us several months to actually agree the opening reading as it must ahve been misread previously, all one digit out! Will try to call tomorrow but they may only speak to dh (his name on bill)

aaagh had confirmation today that the refund was issued on 5th , so too late to do anything now.

Update : just got the latest statement, an estimated reading, which would have credited us a further £25. Great, except we have actually used twice as much as estimated so should owe them about £70 ! I rang up to give the reading using their automated service and got an "are you sure , that is greater than expected ". Now we need to work out what we have actually used this past year and see if the dd is ok overall.

... and the electricity was also an estimate, about £40 under the actual owed . So reckon we should increase the dd on that and reduce the gas. Now need to work out what we have actually used this last year.