Hi
The problem with paying in arrears is that many do not.
This puts up the costs for those who do pay.
The other issue is that the energy suppliers have to pay up front for gas and electricity.
I pay a fixed amount on the 1st of the month. £75. Up till now, I have managed to accrue some credit which does get a one off payment top up during the winter months. (Will change, of course, with these increased costs.)
Octopus then sends my bill up to about the 6th of the month, and then lets me know how much is left in credit. As of now, they haven’t said what my DD will be increased to, but as I am over £100 in credit, this hopefully will be enough for the 6th/7th May, then I will know my ‘spring/summer’ usage. ie, from this past month, when I started using the heating less, and turning off lights.
I too keep a record but use pen and paper, and update this on receipt of each monthly bill. Units used, costs, how much credit left.
I have a smart meter display but chucked it in a drawer.
On the other hand - I do not feel it necessary to finance the energy companies. This fashion for paying in advance is relatively new and there have been times when I’ve allowed my energy company to increase my direct debit - and they take full advantage of that to the extent of hundreds of pounds…which I’ve struggled to get back when changing supplier.
My method now is to input my meter readings into an excel spreadsheet which I’ve programmed to calculate my total bill for both gas and electric, inc VAT. I do this at the end of each month and pay the full amount - less my direct debit - immediately. So for the first half of the month my account is in credit until the energy company calculates the bill from my readings (which I submit when I take them). The account then shows a outstanding amount totalling no more than my direct debit. The second half of the month after my direct debit is paid, my account is clear. Not something they can argue their way out of or insist on a higher direct debit.
I’ll add a PS to this - if anyone is using “Look After My Bills” I suggest you takeover the management of your own energy supplier asap. Check their reviews on Trust Pilot…the only people they look after is themselves.
I do much the same as you Bruce. I use my gas and electricity for a quarter and send in my meter readings. They prepare my bill based on my usage and I pay online with my card. I do not allow direct debits, only I decide what comes out of my account and when.
Its this standing charge that has no accountability, OFGEM say it can be increased by X% and that’s what they do, there seems to be no correlation between the revenue raised by this and the cost of providing a service.
Most energy companies give a discount for direct debit.
I used to feel the same but the last couple of years I signed up for direct debits for my utilities (water, electric and Internet).
I used to pay by Bpay and tried to pay as close to the last day for payment as possible but direct debit is so much better they still send a bill (I got my water bill a couple of weeks ago) and instead of the bit at the bottom telling me payment options it has “AUTOMATIC PAYMENT NOTIFICATION” and tells me:
“On 22/04/22 the due date for payment, Sydney Water will forward a debit of $59.66 to your nominated financial institution for direct debit approval”
Total water used in 87 days was 17 kilolitres
The Electric bill is similar and they leave plenty of time to object to the payment. I wish I’d done it earlier.
It’s only about £23 per year with OVO so hardly worth the bother anyway I’m like Foxy I like to control my bank account not someone else so DD is a no-go for me
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Of course they do scot, they have got open access of your account, I’d probably give you a discount if you sent me the authorisation to withdraw money from your account…
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It’s the prepayment meter customers that I feel for as they are between a rock and a hard place. No cash to buy credit, then the gas/electricity stays disconnected. It doesnt stop there either, because the meter continues to register the daily standing charge as a debt that will have to be satisfied before more energy bought can flow.
I’m with OVO as well. That £23 is better in my account than theirs.
Sorry Bruce, call me ‘old fashioned’ but I don’t agree with giving businesses open season on my account, especially ones who constantly take the p$ss and put up the amount on a whim.
I do pay DD on my mobile and internet package, they wouldn’t do it any other way so I reluctantly accepted…
I probably make more than that in interest in the summer when they are still taking out the maximum amount scott.
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That was very forward thinking when SSE sold off their supply sector off to OVO 
I was with SSE ever since they took over Scottish Hydro.
They can’t take more than you have in the account so if you disagree with the amount they want to take and they won’t budge then you can just close that account or move the money to another account.
I don’t know how you manage your money but I have one account that I use for such debits and day to day expenses (I think I nominated a $1000 daily withdrawal limit on that particular account), other accounts have my savings and special funds. They only have the ability to take money from the nominated account and it never has that much in it.
I really can’t see the problem.
Hi
I use Direct Debit for just about everything, very useful if like me you are in and out of hospital frequently.
With any luck, the problem will be resolved in the next day or two when the UK can wave goodbye to the worst PM in living history!
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They do, Scot, but not sufficient enough to temp me into giving them access to my bank account. I agree with Mr Fox on this one - mine is only hand in the till.
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Really? That would be good news - if there was anyone with a brain to replace him!
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