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Original poster

Does it sound like I have confused my energy supplier?

32 replies

BeyondPurpleTulips · 02/02/2022 16:54

My DD is just shy of £100. I had run up debt on the account without knowing, nothing massive just say £50 under for six months. Then of course the energy prices increased, so it was more like £80 under a month. So I knew I was paying under, and it recommended I up my DD to something like about £170 a month, all fine. I didn't increase it, as I knew I was making a bulk payment soon, as I was due a lump sum. Kick myself for that now. 🙄

As now, I have made the bulk payment, and the day after I made it, it recommended I increase my DD to £250. I pulled a confused face and ignored it (yes, I am stupid). A week later it was £300. I have waited until my new bill was due (end of jan I was expecting it) and now it is up as high as £335! As of right now, I have no debt on the account.

Now I know rates have increased, and I expect to pay more. But I am on a flat rate (set in august), and my energy usage has not increased, so wtf have I missed? Have I just confused the way they work out the DD by paying a bulk amount?

My bill has over tripled?!

OP posts:
Original poster
BeyondPurpleTulips · 02/02/2022 16:55

I'm with eon btw, in case that is in any way relevant. Duel fuel - gas c/h and water.

OP posts:
JassyRadlett · 02/02/2022 16:58

A lot of energy companies are trying it on just now in terms of hiking direct debits because they are currently operating at such a massive loss and even after April things won’t be great for them.

If you’re on a fix they shouldn’t be putting up your DD to cover the price cap increase in April. What is your current monthly bill, taking out the debt etc?

MilkTart · 02/02/2022 17:06

Are you on a fixed or variable tariff OP? You mention prices going up but then that you are on a flat rate. If you're on fixed do you know when that ends? Also, do you know when your DD anniversary date is? (Should tell you on your statement somewhere)

JulesRimetStillGleaming · 02/02/2022 17:07

Contact them. Mine put my DD up by more than double. I contacted them and they "reviewed my account" and have put it back down again.

ponkydonkey · 02/02/2022 17:11

With eon you can dial back the amount that leaves your account
I'm always in credit and yet they still keep upping mine!?

Personally I want my cash in my bank not eons
If they have 1 million customers all in credit they'd make some good interest off that!

So go online and dial it back, or if in credit by 100's ask for a refund

Original poster
BeyondPurpleTulips · 02/02/2022 17:16

It is fixed tariff, my annual date is august. I figured the increase each month could be to allow for the debt, so I didn't worry about increasing it - knowing that I was paying a bulk amount asap. Then when I paid it, it jumped up even higher?!

What numbers would you need off my bill? I promise I'm actually quite intelligent - I just have a blind spot with electricity bills! 😂

I know it's not gonna be a low bill, I have reptiles. But I had them last year too, and my kw thingy is lower than it was this time last year?

OP posts:
Original poster
BeyondPurpleTulips · 02/02/2022 17:17

@ponkydonkey

With eon you can dial back the amount that leaves your account I'm always in credit and yet they still keep upping mine!?

Personally I want my cash in my bank not eons
If they have 1 million customers all in credit they'd make some good interest off that!

So go online and dial it back, or if in credit by 100's ask for a refund

I haven't agreed to the DD changes, so it keeps going up while I'm only paying £96. I know that is wrong, but unless I change it to over £300, I can't do it on the online calculator.
OP posts:
JassyRadlett · 02/02/2022 17:21

You want to look at your actual billed amount each month. Your direct debit can be quite different - either to cover past debts or to even out your payments over the year.

So you want the ‘on this bill’ charges section that show how much you’re being billed a month, rather than your DD level.

dementedpixie · 02/02/2022 18:18

So after making your bulk payment are you in credit or debit? If £96 doesn't cover your usage each month then you need to increase it to match what you are using each month. If you leave it at £96 and you're using more than that then you will end up in debt again. It's the rate per kWh that's fixed not your monthly payment

BarbaraofSeville · 03/02/2022 07:09

Use your annual consumption, which should be in your account or on one of your bills, to work out your annual cost to check what you're paying covers your use.

Also work out what your cost will be once the price cap tariffs are published, tomorrow I think, for April to October, because it is likely you'll be paying this after August unless something changes a lot between now and then.

If you're on a fix until August, you don't need to up your payment just yet, but need to prepare yourself for your payments to increase as that date gets closer, especially as utility companies like us to be in credit in the summer to get ahead going into Autumn and winter.

Keep an eye on industry news (Moneysaving Expert is good for this) to look at how consumer prices etc are changing and whether you should look for another fix, or roll over onto the price cap tariff - current advice is that you should probably do this, as it is far cheaper than any fixes available, but obviously anything could change over the next few months and there really needs to be something done to moderate the rises that will drag millions more into financial crisis.

dementedpixie · 03/02/2022 07:32

She may need to increase her payment right now if her current payment doesn't cover her monthly usage or she will end up in debit again

LawnFever · 03/02/2022 07:36

Just call them, I got an email saying mine was doubling which was ridiculous so I got my latest readings, gave them a ring and agreed a new DD.

It went up a little bit but that increase is ridiculous.

RedRobin100 · 03/02/2022 07:37

I think you have confused the way they work and determine the DD amount.
It doesn’t really work by running up a debt then making a bulk payment. You should
Have just increased the DD when they said.

However, energy companies do also have a habit of massively
Inflating DD amounts so THEY are in the green, even when it’s way more than you need to cover your costs.

Give them a ring and challenge the DD amount ans make sure it is reasonable to cover your new costs.

fedup078 · 03/02/2022 07:40

I've got something similar
I updated my reads last week and they said they needed to add £30 a month onto the DD . By my calculations based on theirs it should only have needed a £5 increase
Anyway I dumped £200 into the account as I'd rather keep the dd down but it hasn't changed so I'll need to speak to them

MrsTrumpton · 03/02/2022 07:45

Our provider wanted to double our DD so I called them and we negotiated a lower rate I was happier paying (so an increase, but not as much). It's also worth remembering that any estimation at the moment is based on last winter's usage when everyone spent months in lockdown (Jan-March 2021). Hopefully this year's usage will be less with the kids back at school and more people returning to their workplaces.

Woeismethischristmas · 03/02/2022 07:51

My supplier def doubled my dd from 90 to 165 three months ago. Latest meter reading I’m nearly 200 in credit. Dd lowered to 110 which seems more reasonable

Thighdentitycrisis · 03/02/2022 08:24

They try to inflate your payments speculating on you using more in the winter. This is to get more of your money in their account and puts you in credit. If you have paid off the debt and you are not in debit you should continue to pay your fixed agreed amount until August

LetsGoParty · 03/02/2022 08:30

Btw Well done on getting a fixed price until august!

Hb12 · 03/02/2022 08:32

The fix doesn't mean anything in terms of DD amounts, if you are using more than you pay for. That is what is reflected in the DD

dementedpixie · 03/02/2022 08:37

It says in OPs first post that the direct debit of £96 doesn't cover her monthly usage so to avoid going back into debit she needs to increase her direct debit amount or it will happen again. The kWh price is fixed not the monthly payment

JassyRadlett · 03/02/2022 09:56

A lot of energy cos are putting up DDs now as well in anticipation of a big rise in the price cap from April.

dementedpixie · 03/02/2022 09:57

Should find out today about the new price cap

Hoosemover · 03/02/2022 10:16

When did you take your fixed out? We moved in a few months ago and got automatic put a fixed rate . Got a smart metre in December and the tariffs were double the capped rate. The energy costs dropped 30% by just changing to the capped rates.

JassyRadlett · 03/02/2022 10:19

@Hoosemover

When did you take your fixed out? We moved in a few months ago and got automatic put a fixed rate . Got a smart metre in December and the tariffs were double the capped rate. The energy costs dropped 30% by just changing to the capped rates.
I think OP said her fix was in August so hopefully just under the wire.

I don’t think there are any fixes on the market now that are cheaper than the SVT (understandably so.) Will be interesting to see what the well hedged companies offer in terms of fixes from April - I suspect good fixes tariffs will still be pretty rare.

Hoosemover · 03/02/2022 11:22

The fixed rates would have be calculated on actual energy costs . The energy hikes started earlier than August last year.