Does anyone understand Energy Bills?

[factor-fiction]

After a year of successfully reducing my energy consumption I have just received a revised Direct Debit demand. I opened it eagerly as I knew I had built up a quite a good credit balance.

This is what it says:

Your balance is: £120 CR

The cost of the energy we've forecasted you'll use for the next year, is: £1590

As your current Direct Debit amount is: £110.00

We believe, in a years time, your account balance will be: £150.00 DR

We therefore recommend increasing your Direct Debit to: £150.00

So I'm in credit but my DD will go up by £40 a month? Looks a bit odd to me. I'm going to have to work out where they've got my forecast from. Perhaps they are factoring in an as yet unannounced huge price increase.

Why does it have to be so complicated?

[gingejbee]

One of the reasons I don't pay energy bills by DD.
Pay bill in full as I receive it for energy already used.

[EcclesCake]

In a word no. Although I do find the Water Companies even more random with their estimates.

From their calculations you should pay £123 or thereabouts, but if you've been paying £110 and are still in credit you should really have you payment reduced to £100.

Completely barking......but you know that!

[Smowball]

Nope, have exactly the same problem - mine was also in credit yet they upped my monthly bill - end of year I was even more in credit.Ridiculous.

[factor-fiction]

There is a 3 page calculation showing forecast consumption at night rate day rate etc, first X units, remaining Y units month by month for the next 12 months. I'll have to plough through it I suppose so that I understand it before I decide whether to challenge it or switch supplier again.

As for DD, I do prefer it and of course get a big discount for doing so. I also get a discount for online billling

[factor-fiction]

Oh, and mine pays me interest (2 -3% pa) when I'm in credit so every month I get a bit knocked off for that.

Barking, i agree.

[EcclesCake]

I agree about the calculations they use, I'm sure it's a case of BS Baffles Brains!

I tried to investigate changing supplier but the incredibly muddled presentation of the pertinent information made it impossible!

I do know that at the end of the year Scottish Electric who do dual fuel packages do refund the outstanding credit, so you start again from scratch.

[AliceTickband]

last time my energy company put up my DD amount I phoned them and told them I was not happy to pay the increase. They asked what I was prepared to pay and I said that I wanted the payment to stay the same. They agreed, and my account is just a little in debit, which is the way I like it, because if it is in credit then they are earning the interest on that money and not me.

[factor-fiction]

Yep, I think 'obfuscation' is the polite term for it

[factor-fiction]

I have just checked. The rate of interest paid on credit balances is 3% . That's a pretty good tax free rate. Maybe I should offer to pay even more than they are asking for and build up an even bigger credit balance.

[dotty.]

when i moved here with duel fuel i asked to pay monthly and they told me it would be £70 a month and so started paying that in april, got first bill here end july, total bill was £126, i have already paid them £280.00 and so i've phoned this month to reduce the monthly amount but they advised me not to as ijn the coming winter months i could end up owing alot more. makes sense i guess.

[ummmm]

They tried to reduce our monthly gas DD to £3. We are currently £1,500 CR. He said to leave it as it is and give us our money back. They aren't too keen on doing that!

[Mick-Talbot]

Does Anyone Understand Energy Bills?


Not a clue, in exactly the same scenario, factor.

[ChuckFickens]

Well they seem to be trying to tell you that your bill is going to go up by 32.5% next year :-O

Which worryingly is about what the predictions are for the next 3 years!

[johnny37]

This thread seems to be covering all the situtions which can arise. I have always found they will try and abide by your request. 1)if not happy with the new amount tell them what you want to pay. 2) If in credit and the DD has gone up this is probably to allow for the onset of winter and possible price rises. 3) if a large cr balance ask for it back but make sure the DD is enough to cover bills. However I'm intriged to know why ummmm is owed £1500.

In essence they wil do whatever you want but be aware the whole point is to cover an unexpected large bill in the Spring.

[starrs]

Do all suppliers pay interest on credit balances or only certain ones? I'm sure i've never received interest from Scottish Power.

[ummmm]

Johnny - Because the DD amount was based on the consumption of a few years back. Since then the boiler has packed up so we have no central heating and haven't had any for over 2 years.

I might sound like a tight wad (I used to work for a heating engineer so could get it fixed at minimal cost) but I actually prefer not having heating. Central heating gives me headaches...

I think he (I don't pay the bills) was paying over the top to start with. That, and the fact we hadn't had the meter read for a few years, means they owe us that much.