Power supplier payment shenanigans.

[I like Skol]

We like a good moan about power suppliers and smart meters etc....
www.cyclechat.net/threads/smart-energy-meters-should-i-shouldnt-i.213246
www.cyclechat.net/threads/smart-meters-a-cautionary-tale.241519

About this time last year I swapped power companies to get a better deal and started a 2yr fixed price contract. All good there then, unit prices cheaper than my previous supplier and locked in for 2yrs so the only way I can lose is if the market price drops (unlikely).

Then the fun starts. I gave them pretty accurate previous usage data so my payments could be calculated at a sensible level and we set out paying £127pcm which was a bit less than the previous company due to the lower unit costs but not massively so, and at least this saving was now locked in for two years.
Now fast forward 5-6 months and the start of spring when they contact me to say they want to increase my payments as usage is ahead of the projections and I am too far in arrears for them not to act. I had a long, sensible discussion with them and point out the flaws in their plan, namely;

• My usage has been consistent for the last few years and we have used that data to set the payment level. No reason to think this year will be any different.
• I started my account just as winter was starting and it is now spring so obviously I will currently be in arrears if we are spreading the cost over the year.
• It is boiling hot, the heating is switched off and will be off for the foreseeable future so things will now right themselves without any change to the payments (we have had a long warm summer this year).

I suggest we leave it another couple of months then revisit the situation. I explain that making increased payments isn't a problem financially but that it will be silly to do this now, at this point in the year & contract as it will just mean that at the 12 month point I will be in an overpayment situation. The person I am speaking to agrees with all this but claims 'the system' will automatically increase the payments anyway! My only option is to wait until they actually do this then contact them again to over ride the increase....

I can't be bothered, life is too short and now the 12 months is up here is the truth

12 months in and as predicted I am massively in credit
The fekwits are even paying me 4% interest on my balance which is good as I can't get anywhere near that in a savings account. My only concern is if they go bust and my credit disappears with them.

Funnily enough their system that is incapable of not raising payments is not similarly forced to reduce the overpayment, odd that isn't it?

My real usage still looks nothing like their projected usage shown above. Real use has a great big chasm in it running from around March to now

 

[fossyant]

Our leccy is the big hitter. Flippin missus hot tub and son's gaming pc. Our overall is similar though.

We've had the same issue. Our big bills were when I was in hospital, and then when my wife wasn't working last winter - the bills went up hugely as folk were in the house/heating the conservatory. The year after my accident, I'd ended up massively in credit, so requested some back.

If you are getting 4% on it then woo hoo. How likely are they to go bust though ? Small supplier ?

 

[ColinJ]

My sister uses one of those companies and spotted the chance to ramp up her credit to take advantage of the interest paid on it. She got away with it for a while until they noticed and refused to take any more payments from her until she burned her way through most of it!

 

[Drago]

They do this to me. Every winter my consumption rises, so in the spring they want to put up my DD, just in time for summer. In the summer my consumption drops, so in the autumn the want to lower my DD, just in time for winter. Are they thick, using software written by Homer Simpson, or what?

So I cancelled the DD. Mrs D uses their app to give accurate, up to date figures every month, and I pay for what we've used, not a penny more.

 

[MachersMan]

We had a smart meter fitted a couple of years ago and were told we would only pay for what we use and it would adjust every month avoiding any over payment. One year later and we're £195 in credit. When the contract was due for renewal so I switched supplier. I couldn't believe the amount of phone calls and grovelling trying to persuade us to stay but it was fun laughing at them. So far the new contract seems good but I'm not holding my breath.

 

[I like Skol]

I've always just paid for what I use as I go along. Why would anyone overpay in advance for something they haven't used yet? If a company can manage to give 4% as 'interest' to people who are in credit, surely they could sell the stuff cheaper to everyone.

I am with you on this. Normally pay all my bills as a lump sum annually if it is an option (insurance, car tax, new bikes etc) unless it is cheaper to spread it out. The energy companies seem to be all geared up to extract your money on a drip feed and I think I get a discount for paying by monthly direct debit, a discount for being an 'online' account and interest on any credit balance.

This is all wrong of course. It penalises the poorest who use pre-pay meters or can't maintain a bank account balance to cover a monthly expense so they end up missing out on the discounts, the best rates and often paying additional charges. Effectively the poorest end up paying higher prices, how can that be right?

 

[welsh dragon]

I am going to stop paying monthpy as well. I am £520 in credit. What a rip off.

I just went onto the site to enter my meter readings and low and behold, it isn't working. Fancy that. Grrrr

 

[dan_bo]

I've always just paid for what I use as I go along. Why would anyone overpay in advance for something they haven't used yet? If a company can manage to give 4% as 'interest' to people who are in credit, surely they could sell the stuff cheaper to everyone.

Same here. Feck em.

 

[Dave Davenport]

Just had the same, for the past year I've been paying £84 a month and am currently £167 in credit, they want to increase my monthly payment to £140!

 

[I like Skol]

I am going to stop paying monthpy as well. I am £520 in credit. What a rip off.

I just went onto the site to enter my meter readings and low and behold, it isn't working. Fancy that. Grrrr

Are you with OVO? It might be an indication of a failing business model if they are forcing all customers into a credit situation to keep the company afloat. Perhaps it is time to get that credit back after all?

 

[Deleted member 1258]

I'm with OVO on direct debt, in the summer we're in credit, in the winter we just cover our bills, I tend to treat it as a savings account and draw a substantial amount out towards the end of the summer, so far its paid for a new tablet and made a substantial contribution to our new bedroom.

 

[welsh dragon]

Are you with OVO? It might be an indication of a failing business model if they are forcing all customers into a credit situation to keep the company afloat. Perhaps it is time to get that credit back after all?

Scottish power for me.

 

[cosmicbike]

I make them send me a bill every quarter. Then I pay the bill. I'm not in credit or debt, and my monthly payment is nil....

 

[I like Skol]

I make them send me a bill every quarter. Then I pay the bill. I'm not in credit or debt, and my monthly payment is nil....

Yes but, are you paying extra for the privilege? Many companies reserve their best deals for customers that pay by DD.

 

[Drago]

I'm not being charged any extra. Indeed, by only paying for what im using I'm laying a damn sight less than they wanted me to.