Beware Direct Debits

[Canary42]

The Privatised Energy Companies will fund their shareholders' greed by robbing your account.

https://uk.yahoo.com/news/energy-firms-hoard-2bn-customers-210000080.html

[ToraToraTora]

OG, "It's an insane system." - it's a terrific system, I like the idea of paying the same each month. Can we assume OG you are still on 3 month billing and pay by cheque so it costs you a lot more in winter than summer?

[barry1010]

Not only that,TTT, but it's about 10% cheaper to pay by DD than other methods

[ToraToraTora]

indeed and even cheaper for dual fuel.

[barry1010]

Yep

[perseverer]

Not as expensive might be more accurate than even cheaper .....

[archibaldy]

I cannot be bothered to fanny around getting it back only to have to pay it out to the same people over the next two or three months. As the saying goes - "nothing to see here".

That's one, relatively unimportant, side of it yes.

The other, and more important aspect is that firms could claim this money as assets and use it to 'fund growth' or to show financial stability where there is none, leading to another failed energy company that we all have to pay for.

[ladybirder]

Barry where do you get 4% interest please?

[THECORBYLOON]

I Googled it and found this from OVO,

"Just for the benefit of others finding this topic I should clarify that the Interest Reward has been discontinued so will only apply to customers who joined OVO before 27 September 2021.

For eligible customers an Interest Reward of 3% is offered for the first year, 4% for the second year and 5% from the third year onwards. This is calculated based on the credit balance in your account the day before your Direct Debit is received and will be added as a credit on each monthly summary. The calculation used to work this out (in case you wanted to double-check things) is (days since Last Calculation / 365) * Balance Prior To Payment * interest Reward Percentage."

I don't know if that is based on the DD calculated by OVO or whether folk can deliberately overpay in order to gain more from the interest.

If they are able to pay that much in interest, I'm wondering where they're investing their money to get more than a 5% return.

[barry1010]

Thanks, Corby - yep, it's OVO. When I moved to them interest rates were very low so I took advantage.

[barry1010]

I deliberately overpaid.

[naomi24]

I agree with Archibaldy. I wouldn't be bothered to fanny around trying to recover it either.

[youngmafbog]

Get 4% on my 2500 overpayment, cant see how that is robbery. I can also change my DD amount to what I like, they simply suggest a figure and show how they derive it.

The private companies do offer lower prices, anyone who remembers having to go to "The Board" will remember what a disastrous expensive thing it was.

As usual Canary you have let your commie rose tinted specs cloud the real view and subsequently you have spouted the usual rolloxs.

[bobbinwales]

2 billion works out at about £60 per household which don't sound much considering we still have to get through the winter.
I think the markets broke at the moment...not sure nationalisation is affordable or beneficial but there should be far fewer suppliers in my view....one of the new enrants were too small , couldn't afford to hedge and had to be bailed out as there model was flaw'd

[youngmafbog]

//but there should be far fewer suppliers in my view//

I agree and would add, after the recent collapses, that tighter regulation should be put in place along with safeguarding of the spare cash. They did it to Banks when they didnt behave responsibly so do it to these companies, lets face it the good ones wont be affected anyway.

[barry1010]

I well remember the days of 'the board' - I and many others struggled to pay our quarterly bills at times. It was common for people to put money aside in envelopes each week to pay their gas, electricity, rates etc and then there were companies that did it for you - at a cost.
Can anyone remember the name of the biggest company? They came door to door collecting the money each week (it was always the same amount, spreading the cost over a year) and paid your quarterly bills directly. I never used them but I know a lot of people depended on them to manage their money. Of course they charged a commission and you had to give them all your financial details.

I also remember neighbours knocking the door of my parents' house to borrow a shilling for the meter - gas, electric or tv (remember that, when tvs were too expensive for many folk to buy?). Even in the 60s gas and electricity was far more expensive if you had a meter - hitting the poorest hard.

I appreciate being able to pay all my bills by direct debit.