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Original poster

British Gas to refund energy rebate each month.

79 replies

Whatthetrolley · 15/08/2022 17:42

Just had an email saying that British Gas will be refunding the £67/66 per month after the full direct debit has been taken. So not just a credit on the account. I now need to up my DD to £66.

British Gas to refund energy rebate each month.
OP posts:
Chasingsquirrels · 15/08/2022 17:44

How utterly ridiculous.

Glittertwins · 15/08/2022 17:47

I was expecting the account to be credited with the £400 but I suppose because I have dual fuel, it's easier for BG to just refund the cash back than try and find out who wants what account credited.

Original poster
Whatthetrolley · 15/08/2022 17:48

I don't think there was ever an option to choose. I think it s because most people have electricity but not everyone has gas. It does help then that we can choose to move it to the gas account.

OP posts:
dolphinsarentcommon · 15/08/2022 17:51

Just a clever way to make sure they get your money. Sounds like if your DD doesn't clear you don't get the money.

Bloody robbers

BarbaraofSeville · 15/08/2022 21:13

I don't see it like that at all @dolphinsarentcommon.

It looks like they are giving back money that most people will really need to pay towards their energy bill, so there's a risk that they'll build up debt in their energy account and some will spend the £66 on something else.

Fine if it's food or another essential but not if they see it as free money to treat themselves with while they have a big winter fuel bill to pay.

dolphinsarentcommon · 15/08/2022 21:17

@BarbaraofSeville what about those who can't pay the direct debit? Those who are so pushed by prices that they can't keep on top. Their direct debit won't clear so they won't get their money.

BarbaraofSeville · 15/08/2022 21:22

Well if the direct debit doesn't clear, you keep whatever money you have and the £67 goes towards your energy bill?

Most people will have always paid far more than £67 pm for their energy and if they can't manage that this winter they need to talk to their energy company about payment plans and extra grants etc.

HinchcliffeandMurgatroyd · 15/08/2022 21:23

That is awkward for people on small fixed incomes.

GetOffTheRoof · 15/08/2022 21:24

It was always going to be a credit onto your energy account - it was never intended to be a lump sum we could withdraw for example. I'm sure other companies also said they'd spread it out over multiple months rather than use it to pay a month or two of readings.

Hugasauras · 15/08/2022 21:25

I doubt they can withhold the money as it's not their in the first place. I think it's just to illustrate how the timing of it works. The £67 will be applied regardless, but most people will be paying DD so that's how it's explained.

mattressspring · 15/08/2022 21:27

It looks like they are giving back money that most people will really need to pay towards their energy bill, so there's a risk that they'll build up debt in their energy account and some will spend the £66 on something else.

I think they are refunding it so the money is going on the fuel, but you have to have the money to pay in advance in the first place, which of course helps no one.

jsvacation · 15/08/2022 21:27

Surely it would be better to give people a choice. I'll be paying mine straight back to British Gas, what a ball ache.

dementedpixie · 15/08/2022 21:27

GetOffTheRoof · 15/08/2022 21:24

It was always going to be a credit onto your energy account - it was never intended to be a lump sum we could withdraw for example. I'm sure other companies also said they'd spread it out over multiple months rather than use it to pay a month or two of readings.

But BG are saying they will take the the £66 from the energy account and send it back to the bank account.

dolphinsarentcommon · 15/08/2022 21:28

The OP clearly says it will be 'refunded' once the direct debit has cleared. No information about what happens if it doesn't clear.

mattressspring · 15/08/2022 21:28

But BG are saying they will take the the £66 from the energy account and send it back to the bank account.

Yes. Because they are changing everyone the full cost, then taking the money off, hence the refund. Backwards method.

BaronessEllarawrosaurus · 15/08/2022 21:31

dolphinsarentcommon · 15/08/2022 21:28

The OP clearly says it will be 'refunded' once the direct debit has cleared. No information about what happens if it doesn't clear.

They'll be keeping the money towards the energy account. Why do you think they should give them the money if they have debt on their account?

Iamnotthe1 · 15/08/2022 21:33

They haven't explained it well in that communication and that will lead to some not being prepared. It would be much easier for the customer if it was automatically deducted and reduce the risk of uncleared direct debits.

dolphinsarentcommon · 15/08/2022 21:34

Iamnotthe1 · 15/08/2022 21:33

They haven't explained it well in that communication and that will lead to some not being prepared. It would be much easier for the customer if it was automatically deducted and reduce the risk of uncleared direct debits.

Quite.

Nearlyadoctor · 15/08/2022 21:49

EDF have stated exactly the same thing, the money will be refunded to your account - seems a bizarre way to do it!

British Gas to refund energy rebate each month.
Sooveritallnow · 15/08/2022 21:54

I don't get the whole refunding to people's bank accounts. It makes no sense.
So you pay £167pm by DD, this shows as a payment of £167 against your energy statement but £67 has been refunded, so the net effect is you've paid £100 but reduced your bill by £167?

Why don't they just reduce the DD or not increase the DD when the price cap goes up and peoples bills increase? If peoples bills are then in credit in spring when usage drops refund overpayment then?

BarbaraofSeville · 15/08/2022 22:01

I've just looked at my Octopus account and it says that the DD from October to March will automatically reduce by £67 which seems like the sensible way to do it.

Namerchangerextraordinaire · 15/08/2022 22:04

This is a ridiculous way to do it, which will be used to justify asking for higher direct debits in advance than they need & cause issues for anyone on a low income.

They should just reduce direct debit amounts by the monthly portion of the £400 for those 6 months, meaning people don't have to 'lend' that money to the energy companies interest free for however long it takes til they pay it back - if you think that is going to go smoothly for everyone dream on.

They also haven't said how long they will keep 'your' money.
A week after your DD, a fortnight, a month?

onedayiwillmissthis · 15/08/2022 22:06

E-on Next seem to have a better idea.

"We'll be paying the money differently, depending on how you pay for your fuel now:

Fixed Direct Debit customers will receive the money automatically as a deduction to their monthly Direct Debit.

Pay on receipt of bill customers and regular cash payment customers will see the money automatically applied as a credit to their energy accounts in the first week of each month. This will show as a credit in the payments section of their monthly bill.

Smart prepayment customers will see the money credited directly to their meters as a top up in the first week of each month.

Traditional prepayment customers will be provided with vouchers in the first week of each month. It's likely these will only be redeemable at the Post Office, not at all top-up locations"

TokyoSushi · 15/08/2022 22:07

Yes just about to say about Eon Next, seems a bit better...

CravenRaven · 15/08/2022 22:13

She'll appear to be just adding a £400 credit to your account, in six instalments.

"You’ll receive two instalments of £66, and four of £67, starting in October 2022. If you pay by Direct Debit, or when you get your bill, the credit will appear on your account as if you’d made a payment."