Fixed Price Dual Fuel

[888]

how come it's been increased £10 month because too much fuel is now being used and was under assessed? Can they do this?

[Buenchico]

Of course 'they' can.

It's only the price per unit that's fixed for a given period. The amount you pay monthly is a separate matter and based upon an estimate of the amount of fuel the you'll use. If you use more fuel than expected your monthly payments will have to increase in order to keep your payments in line with the bills that you're running up.

[Old_Geezer]

It sounds to me as if you have signed up to one of those evil direct debit arrangements and so yes, if you have been underpaying for your fuel, naturally they'll help themselves to more of your wealth to cover the deficit.

[fiction-factory]

^Although even if you pay by cheque you would still need to pay any shortfall and your price per unit would be higher because paying by cheque is an inefficient system from the energy supplier's point (and as a user I'd find it incovenient having to post off a cheque each period or make a trip to my bank). It may even be one one of those not so evil direct debit schemes where they pay interest at a rather generous rate on credit balances or periodically refund any surplus as my supplier does.
The Direct Debit guarantee exists of course to prevent suppliers from being too evil

[Old_Geezer]

The is no such thing as a not so evil DD. By it's very nature a system that allows folk free access to your wealth is wrong. Should have been made illegal from the start to protect gullible members of society who'd agree to it, but instead it is allowed and is now obligatory for some things which one needs where all suppliers insist on it. Bad enough the banks have one's wealth without opening access to anyone in the commercial world, especially when obliged to do so.

[fiction-factory]

Perhaps I've been lucky then, O_G, to have found them very useful and efficient over many years and although they aren't always necessary I would not want to lose the facility. I now pay my credit cards by DD each month too- it saves me overlooking a bill. I do prefer standing orders in some cases though for some payments. Have you had a bad experience of them, O_G, or are you just against the idea on principle?

[Old_Geezer]

On principle. And on what can occur (of which there has been reports in the news) as a consequence. I think it is tantamount to giving your house and car keys to everyone in the neighbourhood on the promise they won't use them unless they tell you first. One should not trust commercial concerns more than one needs to, they don't have your interests at heart.

[fiction-factory]

I don't really see the analogy- I would only give my car keys and house keys to people I could trust and/or with an agreement I knew I could enforce. The same goes with DDs. I know that the DD guarantee and the scrutiny that major organisations are under would mean my money is safe enough. The same goes with my ISAs- the bank could disappear with my cash but I know there are safety nets so I don't hesiate to leave my money there.
But if you can manage without DDs that's fair enough.

[Svejk]

I like 888's idea. Get a 'fixed rate' deal and then use as much power as you like. (without paying any extra)
Scottish Power have just started sending me 'warning letters' again. This, about 2 years after we established I wasn't their customer. (after a 2 year wrangle)
Oh well, here we go again. ;-)

[ivor4781]

old gezzer
i think you've been watching to many "watchdog" type of progs,
as fiction factory says DD as safe as YOU make it, how do you pay your bills ? by having to queue endlessly at a counter, or pay by cheque which means a 60p stamp every time,with DD its all done without any input from you once its set up ,

[hc4361]

Buenchico answered this very thoroughly at 02:49

Regardless of how you paid - direct debit, cash, cheque, bank transfer, Paypoint or any other method - your monthly payment would still increase in your example.

OG, even with direct debit the customer is given prior notice of the increase, extra money is not taken willy nilly

[gingejbee]

ivor....I don't pay any bills by Direct Debit - nor do I queue or use the cheque/post option. When any bill comes in, it gets paid via my online banking service - which I've used for five years without a single problem.

[fiction-factory]

I can see somepeople prefer it that way w, gingebeem which is fair enough. I did find I very occasionally missed or was late with a credit card payment doing it that way, especially over Christmas or when i was away on holiday or when we had a lot of hospital visits in the evening, so to stop the risk of late payment/interest charges I now settle those by DD too. It also means the money goes out at the last possible moment so I don't have to worry about when to set up a payment for abill that's due on a bank holiday weekend.
Even better, some organisations offer a discount or paying by DD (council tax, energy, water); and then Santander gives cashback of up to 3% on many DD bills so it's a good deal financially I find.
Nevertheless I can see why some people prefer to feel in control even if there is some extra cost or or risk of getting a payment wrong.

[fiction-factory]

^ didn't mean to call you gingebeem there.

[ivor4781]

gingejbee
fairdo's but still easier by d.d once its set up

[888]

thank you all