Energy company increasing direct debit

How true this is, I really don't know - but I've just had a mail from the political-activist group, 38 Degrees, which states that energy companies could be sitting on hundreds of pounds of your money via Direct Debits.

They have calculated it as £3 billion from 16 million households. But where they get their figures from, I have no idea, and don't have time to research it - or the activist group history... though I believe they've been 'in business' since 2009.

If it is anywhere near that figure, then that's an awful lot of money. But I do realise that some energy companies are better than others in allowing you to downsize your DDs and are quick to repay credit owing.

However, it's food for thought.

I must, at some time, have looked at their website and clicked on the "accept Cookies" option, because they are not a group that I look at online. And there are others... but that's a separate thread...

Thought I would come back and update on my OP. I called the energy company yesterday as I had not received a response or acknowledgement to my three emails.

Their excuse for the 38% increase in our DD was based on our energy usage over the winter period!!.........I pointed out that we are approaching much warmer weather and our energy usage will be reduced massively - I know this from experience. The call handler was adamant they were doing the right thing but I was very firm and pointed out that we were in credit and always have been, although this does fluctuate, and I did not want the DD increasing by such a huge margin.
I also raised concerns over the huge amount of money that they are accumulating when customers are in credit but the call handler claims to know nothing about that - I guess they are working from a script after all.
All things considered, I did get my way and the DD will remain at the previous figure - but not before I threatened to report them to OFGEM and my local MP.
In conclusion, I wasn't rude or vehement, I simply made my point and refused to accept their decision.
We are on a water meter and I have never had this problem with Severn Trent, if I am in credit they leave the DD amount alone or reduce it, depending on the amount.

Severn Trent recently changed my meter. I asked for an up to date bill at the changeover and when I found I was £130 in credit I requested and received a refund. I rang them and got my DD reduced considerably. They were easy to deal with over the phone.

All things considered, I did get my way and the DD will remain at the previous figure - but not before I threatened to report them to OFGEM and my local MP.
In conclusion, I wasn't rude or vehement, I simply made my point and refused to accept their decision.

Oh well done you, Astitchintime! You need a or a stiff

But at what cost to your wellbeing? It takes over your life for a while. If you have to 'threaten' to make them understand reason, it's a pretty poor show.

when i became an octopus i told them that i would give them my bank details and authorise them to take the exact sum i owed them each month.
i send them the meter readings.
one month i was a day late and they estimated it based on the previous readings.
they are excellent.
wish i'd changed sooner.
you don't have to agree to the average system.

I have never had a problem with Direct Debit, it saves all the faffing about making payments each month by cheque or money transfer or online. If I have overpaid then I just request the overpayment back and then amend my direct debit accordingly. I have been with my company since we were married in 1967 and have never had a problem. Many years ago, I used to go into town with my Gas and Electricity bill and pay cash at the counter but now I love the simplicity of having a direct debit so I can forget about paying the bills but, I always check every month before meter readings are sent in and work it out myself so I know exactly what my bill will be, I am always correct to the penny. I check my other direct debits at the end of the month for the other things I use them for and there has never, ever been a mistake.

I agree GSM. I prefer to pay all my bills via BACS not by direct debit.
They still try though. I quote Martin Lewis to them.

Rather strange they have upped it if you are in credit. I thought prices had come down. My provider, Octopus, have reduced our monthly payments,

I m in a fight with British Gas over similar issues & Im really had it up to the back teeth over ‘ estimated ‘ bills. There is no one in the UK you can actually speak to . Their customer service agents are all in Durban with heavy South African accents & you get cut off if on too long. It beggars belief & yes I’m leaving British Gas as soon as I sort out my CREDIT 😡Any advice ?

LottieLouise

I have never had a problem with Direct Debit, it saves all the faffing about making payments each month by cheque or money transfer or online. If I have overpaid then I just request the overpayment back and then amend my direct debit accordingly. I have been with my company since we were married in 1967 and have never had a problem. Many years ago, I used to go into town with my Gas and Electricity bill and pay cash at the counter but now I love the simplicity of having a direct debit so I can forget about paying the bills but, I always check every month before meter readings are sent in and work it out myself so I know exactly what my bill will be, I am always correct to the penny. I check my other direct debits at the end of the month for the other things I use them for and there has never, ever been a mistake.

It's good to hear that you've never had a problem with DDs. Clearly, though, some people do, and it seems suppliers vary in their willingness to pay back any over-payments as well as increase the DDs without consultation to an amount that is frequently then lowered when the customer complains.

DDs work for some, but not for everyone, and we all need to have a choice.

My experience is not everyone's experience, but I don't find paying a bill online much of a 'faff'. The billing is online, I press a button, and pay it.

... I doubt there are many who pay by cheque anymore - but for some, perhaps the very elderly who are not online, this is their only method.

Each to their own.

I received my electricity bill by email today, quickly checked it then as usual paid online by credit card (paid off in full each month before anyone leaps on that). No faffing at all. I always pay bills immediately - I don’t like owing money.

Germanshepherdsmum

I received my electricity bill by email today, quickly checked it then as usual paid online by credit card (paid off in full each month before anyone leaps on that). No faffing at all. I always pay bills immediately - I don’t like owing money.

I think we are in the minority GSM.

But, like you - I don't find it a faff either.

I know anyone can check their fuel consumption at any time - but there's something about opening your latest bill which concentrates the mind somewhat on the consumption.

Don't let them increase if you are in credit it shouldn't be necessary. I just rang my company and told them not to increase and if I owed extra at the end of the year I would pay the balance.

Try changing supplier. Octopus are excellent, no hanging on the phone, you can email and get an answer fairly quickly. We have a smart meter and I love it. I can see what I am using at a glance and we have a tracker account so the electric is much cheaper at the moment.

we pay on receipt of the bill, yes a little more than if we paid by dd but worth it i think. They don't have any of my money sitting in their bank

I pay by variable direct debit (with BG). This means I only pay for what I use each month - no ‘excess’ money sitting in their account. They send me a statement online at the end of the month and they take the amount out of my bank via DD two weeks later. I know what the amount is going to be anyway because I’ve got a smart meter. I started this variable system when, like you, I was informed my fixed DD was going to increase despite being hundreds of £s in credit. When I phoned them to say ‘you’re taking the P … you can stuff it’ I was informed about the variable DD. Prior to that I didn’t even know it existed. Anyway, it works well for me. As others have said, we are the client here and, as such, we’re in control - not them.

I’ve had issues with Octopus, going back to September. Both times they have admitted full responsibility and added compensation to my account. It’s been easy to contact them and get things back on track - free electricity for a while!!
I can’t fault them otherwise and intend to stay with them.

Octopus did want to lower my DD to a very low amount, but I’ve chosen a reduced figure for the summer months - both happy with that. Meanwhile, a credit balance is being returned.

When we were with OVO, they kept hundreds of pounds on account. There was a hiccough with the gas meter so they weren't charging usage even though I was sending in readings. It took 2 years to sort out and I had to go to the Ombudsman. After leaving them over 6 months ago, I have just had the final account and the princely sum of £8 refunded...well it will be refunded eventually but takes 3 weeks! I would never go back to them again.
Meanwhile, Outfoxthemarket wrote to say they wanted to put up the DD because we were had a negative balance by £40 at the end of the winter but had been in credit all the year round. My husband refused. He sent them a payment of £40 and they kept the DD the same.

This happens to me once a year, despite being in a small credit! I simply go into the DD and amend it back to what it was and it stays at that figure until the next year comes around 😐 We have refused all “offers” of a smart meter and I take readings on the 29th of each month and send them to respective gas and electric companies so I know we are paying for what we use. You just have to be on top of these companies all the time these days.

Send them an email telling them they do not have your permission to alter your DD from £***. They will then return it to that amount

I am with Octopus Energy and they have been brilliant with my Direct Debit. They have offered refunds if I am more than 1 month in credit and have just reduced my direct debit because they said I am paying too much. There is an option online that allows you to alter your direct debit to a level that want too. However I have read online, on the BBC news I think, that when the new cap comes in in July that the cheapest option for making payments will be by prepayment meter, slightly higher will be direct debit and highest of all will be paying bills.

Astitchintime

I was furious last night to receive an email from our energy provider stating they were increasing our DD from June by a massive £40 despite the fact that we are in credit and always have been.

Has anyone else been informed about this? Also, my OH who is also named on the account did not receive the information so if your circumstances are similar it might be worth checking this out.

I would contact them to ask if this is really necessary, as today's newspapers are quoting a drop of £100 for the average bill due to the price cap changes and the cost of energy having reduced. This looks like a quick grab at extra money - if they are doing this to all customers they will create a tidy sum in their coffers for no reason.

I can’t fault Octopus they are an excellent company
I have just sent my meter readings in today for Gas and Electric and yes, I do pay by direct debit and I do like to have credit on my account…

My energy company is excellent and allows me to change my DD S and when necessary. Their Communication is spot on and I am in control of all my bills / accounts. Happy to name them if I am allowed !!