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How are you managing energy direct debits?

(83 Posts)
GrannySeaside51 Tue 27-Sep-22 10:44:21

I am all electric with Octopus who I am happy with and manage my account online. I understand it is not for those who don’t like the internet for financial matters or don’t have access to the internet.

I recently increased my monthly dd to £100pm and about £200 in credit.

I received an email from Octopus advising they were reducing my monthly payment to £33. This is passing on the £400 discount of the Government Energy Bill Support Scheme. From October, I will receive a monthly discount on my account of £66 (rising to £67 from December to March). I have the option to use the scheme to build up a buffer, and can adjust my payment back up.

I am wondering whether to increase it back to £100 or just by a small amount and if so how much? What would you do?

Blondiescot Tue 27-Sep-22 16:26:14

I got an email today to say our payments would be slashed by around two thirds. This is taking into account the government payments and our existing credit. I'm quite happy to leave it at that - the money is better off in our account than theirs and we can change our payments online whenever we want anyway.

NotAGran55 Tue 27-Sep-22 16:29:08

We pay GB quarterly by variable Direct Debit. No credit or debit balances accruing to think about or juggling of DD payments.

No surprises either as I keep an eye on the usage and already know how much the bills will be before they are processed.

I couldn’t be bothered with all the faffing and uncertainty that seems to be a common theme.

NotAGran55 Tue 27-Sep-22 16:29:38

BG not GB!

GrannySeaside51 Tue 27-Sep-22 17:10:02

My SiL said “save the money and you’ll have £400 towards your bills when they go up again”. I told him I thought I’d spend it on a holiday. Don’t think he realised I was joking!! ?

Georgesgran Tue 27-Sep-22 17:40:12

My payment to Octopus went up by £100 in May, which resulted in a credit of over £500 in a couple of months - I got a little back, reduced my payment to what it was and am still £350 in credit, but I’ll leave it because I don’t know what lies ahead.

Pittcity Tue 27-Sep-22 17:49:02

We're with Ovo and they are keeping the Direct Debits the same and refunding the discount to our Bank Account. We have been emailed to say to expect the first payment within 10 days.

GrannySeaside51 Tue 27-Sep-22 18:09:28

It is interesting to see how energy companies have interpreted how to work this Energy Saver Scheme. Companies such as Octopus are deducting it at source from our bills yet it looks like some other companies are continuing to charge the full amount for bills and paying the discount direct to peoples bank accounts.

Out of interest I looked at the Government website and it does say:- “ If you’re a direct debit customer you’ll get the discount automatically in one of the following ways, as a reduction to your monthly direct debit amount or a refund to your bank account following the monthly direct debit collection”.

Callistemon21 Tue 27-Sep-22 18:28:06

If interest rates are going up, why not open a separate building society or bank account which pays interest so that the money is available if your bill is unexpectedly high? You could keep the direct debit at the amount Octopus suggests.
Why increase your DD and let Octopus hold your surplus money?

M0nica Tue 27-Sep-22 19:37:19

Exactly Callistemon, it is what we have been doing for years. For the reasons so neatly presented by NotAGran65

MerylStreep Tue 27-Sep-22 19:45:38

I’m not giving Shell an interest free loan. The money will stay in my account, not theirs.

Razzamatazz Tue 27-Sep-22 22:35:28

I spoke to my 85 year old aunt today, she cannot cope with on-line banking, and pays her bill at the bank when she receives it.

She won't activate her POA so I can help her. She is with British Gas who seem to have quoted her usage as quite high at £1800 for a small one bed flat, she doesn't know where to look for the unit costs. She gets very flustered when I try to talk to her about it, hopefully her lovely neighbour will see her for a cuppa soon and explain it all again.

SunshineSally Tue 27-Sep-22 22:52:37

Pittcity

We're with Ovo and they are keeping the Direct Debits the same and refunding the discount to our Bank Account. We have been emailed to say to expect the first payment within 10 days.

Yes - we’re the same. Though I note that each months’ discount will be refunded to our bank account after they’ve received that month’s payment via direct debit.

Nannashirlz Thu 29-Sep-22 11:19:22

I’m on eon I pay 120 a month now used to be 70 anything government give me I’ve being adding it to my account yes I’m in credit by nearly 350 but they will send it back in future if I’m in credit but I’d rather be in credit at these scary bill times

Scottiebear Thu 29-Sep-22 11:24:35

We, too, are with Octopus, whom we are pretty happy with. They are good at keeping us informed and we have had the email today re the subsidy. We have also been overpaying on our DD and are considerably in credit. But happy to leave it as a cushion to get us through winter. If, at the end of winter, we are still in credit then we will either lower our DD or request a rebate.

Urmstongran Thu 29-Sep-22 11:32:31

We’re with Scottish Power. Himself has just taken our meter reading from the communal area cupboard on the ground floor. He took one 9 days ago as a comparison and in that time we’ve used 75kW. We live in a small apartment, haven’t needed any heating on yet but whether one lives in a large house or a small apartment the kettle goes on, the washing machine, daily showers, the television, the broadband router, a fridge etc.

I know he’ll be doing his sums later .... ?

The general consensus on here though seems to be - with government assistance via capping - “things ain’t too bad”. Perhaps the media have whipped this topic up into a frenzy?

Shawlands2000 Thu 29-Sep-22 11:41:20

We're with Ovo and they pay you 5% interest on any overpayments you might have. Better than money in the bank!

Riverwalk Thu 29-Sep-22 11:44:31

Without the media 'frenzy' there would have been no government help - Sunak's original plan was to give a £200 loan.

Nannapat1 Thu 29-Sep-22 11:44:54

We are with Eon Next. We used to pay £350, monthly DD and earlier this year they attempted to 'ask' for over £600 per month. We refused, saying that we were willing to pay £450 per month and pay any shortfall should it occur.
Now, they've 'asked' for £813 per month and we have raised a complaint. We have explained that attempting to take such a large amount may result in a failed DD with all the negative consequences. If they insist on trying to take the large amount, we will cancel the DD, set up a Standing Order and pay any shortfall, should it occur, when it occurs.
Frankly I don't see why they should benefit from using the money of customers who are in credit (which we currently are) when we could put aside that sum, gaining some interest, until the time comes to settle the bill.
Having a monthly DD to 'avoid unexpected bills' in their words, is a con.

albertina Thu 29-Sep-22 11:47:13

My first move was to change to Octopus from Ovo. Much better. I now feel safer and sleep better. They keep me well informed. Trust is important to me.

crazygranmda Thu 29-Sep-22 12:12:51

I will never build up a big credit again having, despite all the guarantees, lost £300 when our previous supplier went bust.

cc Thu 29-Sep-22 12:20:10

The same thing has happened to me with Octopus for a house with only occasional occupation. I think they've probably got it right in the case of our house, but it's odd that our DDs are also reduced to £33! Personally I would have thought that's a little low if you live there all the time.

grandtanteJE65 Thu 29-Sep-22 12:21:35

We have a slightly different system here, but I am certainly not intending transferring less money a month to the account our direct debits are paid from, even if the individual bills go down, as I suspect they will shortly rise again!

Alioop Thu 29-Sep-22 12:42:05

I got prepaid meters in for my gas and electric as I've so many direct debits going out every month for other things. My gas is going up again on Sat by 29% so I'm glad I put a lot on my meter just before the summer as it's gone up by 80% since then.

Helenlouise3 Thu 29-Sep-22 12:44:10

I'm with OVO and my DD has increased from £87 to £141 even though I'm on a Fixed rate plan and £300 in credit with them. I'll keep paying the higher amount as there's interest on the credit that's built up

missdeke Thu 29-Sep-22 12:50:27

I too am with Octopus. They are the easiest company to work with, my direct debit is still at £25 pm as I have been in credit since the home warm discount last year. Once the £400 has been added (6 months time) we'll review the situation.