Energy companies increasing monthly payment when you're already in credit

[doyle 10]

I got my statement from NPower yesterday and was excited to see that I was in credit by £98.70 for both gas and electric. I thought great, my payments will go down a bit. No chance, they have gone up fron £61 a month to £88. £27 a month plus the £98 credit which will stay with them, that means my energy supply is going up from £732 per annum to £1154. Thats more than half again. I phoned them straight away and they said it was right it was to cover the increase. I phoned British gas and they did me a deal which worked out cheaper than I was originally paying with Npower. I opted to pay a bit more to cover for the winter months. I live in a small 2 bedroomed flat with my husband, no children at home. What if we were pensioners, which the other 3 flats in our block are. How can they afford the increases, I cant and I work. I am furious. Has anyone else been hit with big increases?

[muddycoffee 10]

All gas companies tend to do this. They like to load the payments so that they owe you money. If they have a million customers that they have overcharged £100 then they are benefitting from the interest of having £100 million on deposit that is not theirs.

When mine gets over £50 I just call them and tell them to pay it back to me, which they do in the next few days.

 

Another way of getting money back from them is when they arrange for a meter reader to come and you have stayed in the house for nobody to turn up. You are legally entitled to compensation of over £20 per service. If they don't credit you within ten days the compensation doubles.

 

I an currently enjoying a free month of electricity and gas thanks to Npower's understaffing.

[kidley 48]

not only npower M8t scottish power have done it with me and i am £195 in credit

[Big Sigh 10]

I was paying £41.00 a month (economy 7, 1 bedroomed flat ) and was £0.98p in credit. I was wanting to pay even less than this so i phoned them up and said i could pay £27.00 p/m (on a new tariff). Happy with this they adjusted the payments and they took out the first payment. When i received my first bill they were upping the payments to £43.00. I might as not bothered. I was told that they should not have been put on that tariff. So i am now going to pay £33.00 p/m.

[Andy 10]

Surely, if you're budgeting properly, you should be in credit at this time of year since it's coming up to winter? I thought the idea was overpay during summer to build up credit to cover you for the cold, dark winter months?

[muddycoffee 10]

That doesn't work Andy, they do the same every single year. Their own calculations are designed to make you overpay by a massive amount even taking into account your usual usage over the winter period.

[ANGELFIRE1 10]

That doesn't work Andy, they do the same every single year. Their own calculations are designed to make you overpay by a massive amount even taking into account your usual usage over the winter period.

 

 

How do they take extra money from an account without the holders permission, and signed authorisation.

 

Regards

 

Angel.

[CeeCee 10]

We have recently cancelled our gas and electric direct debit because of this and now put money away each month ourselves to pay the bills when they come in.

[muddycoffee 10]

How do they take extra money from an account without the holders permission, and signed authorisation.

 

Regards

 

Angel.

 

 

Direct debit.

[Andy 10]

How do they take extra money from an account without the holders permission, and signed authorisation.

 

You normally sign up for a variable direct debit, so they are allowed to increase the amount they take, subject to giving you notice (I think it's 14 days).

 

I would expect to see you be roughly even in around April, so you can start building up the credit again during the summer. If you're still in credit in April then you've paid too much.

[muddycoffee 10]

We have recently cancelled our gas and electric direct debit because of this and now put money away each month ourselves to pay the bills when they come in.

 

 

Unfortunately in my experience, you get a discount by paying direct debit and a further discount for dual fuel.

The best method for me is to keep claiming it back from them.

[Jim Hardie 517]

How do they take extra money from an account without the holders permission, and signed authorisation.

 

Regards

 

Angel.

 

If you pay by direct debit you've already given permission. Standing orders were better in this respect but they've gone the way of all good things in the banking business.