It was my understanding that we pay nothing for 6 months and the gov payments are credited to our account, that is of course i you pay less than that.
DD notification
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Why I have I received an email today informing me I will be paying my DD on the 1st Nov?
It was my understanding that we pay nothing for 6 months and the gov payments are credited to our account, that is of course i you pay less than that.
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11 Replies
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@UKDave51
It’s my understanding too that if your normal DD is under £66 then you should pay nothing for six months.
The only thing I can think of is did your tariff rates increase on 1st October thereby necessitating a rise in your notional DD to above £66?I'm an Eon Next dual fuel customer with no particular expertise but have some time on my hands that I am using to try and help out a bit. -
@UKDave51
Can I suggest that rather than go through these "what if" scenarios you just wait for the system to work? However it is worked, you will receive the benefit of the government discount.Last edited by meldrewreborn; 25-10-22 at 14:25.
Current Eon Next customer, ex EDF, Zog and Symbio. Don't think dual fuel saves money and don't like smart meters. Chronologically Gifted. If I offend let me know by private message, but I’ll continue to express my opinions nonetheless. -
What meldrewreborn said!
Let me illustrate a f'rexample.
My D D is £40 due on the 1st of October for my September usage. I pay balance in full every month.
So, £40 of my money is taken by Eon.next. No huhu...without the grant, that's what I would have paid anyway.
03 October, the gumment credit my account with £67, putting me £67 in credit. Cool beans.
Prices went up, so my bill for October will now be about £50. Fair enough.
Only, my account is in credit so instead of taking the DD, they take my payment from my account credit, leaving £17 in the pot.
Again, the gumment come along sometime in the first week of November, 4th say, and deposit another £67.
So far, all I have paid is my £40 for my September bill, which was pre handouts.
My account is now £84 in credit by the time my November bill of £80 rolls in. Dark evenings and getting colder so I'm using more.
No need to take an £80 DD because my account was in credit, see?
Along comes my December £66 on, say, 2nd December. I'm now £70 in credit, but get a bill for £95 because I cooked loads of dinners over the period.
So, on Jan 1st, they take the £70 credit from my account, and claim the balance of £25 by direct debit.
Jan 4th, another £66....and, well you get the picture.
Over the 6 month period, you will have actually shelled out £400 less than you were billed for.
Your direct debit payments are not affected in October because that D D was for your September bill. Direct Debits are paid in arrears, the grant payments are an advance. You will see the effect on your DD only from your November payment, which is for energy used in October, which is when the scheme came into effect.
Last edited by retrotecchie; 25-10-22 at 14:55.
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@retrotecchie
I don’t know if that’s how it actually will work but it’s the best explanation I’ve read yet and makes perfect sense. -
In a nutshell, you pay (by DD) in arrears for last month's bill. The government money is an advance against next month's bill.
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@retrotecchie
I think it depends a bit on the timing of the bill, though. The government contribution probably wasn't credited to your account in time for it to be used to pay your bill at the start of October. Mine's a bit different, although I also pay by variable DD - I sent in readings at the end of September for that month's usage, but my DD wasn't scheduled for until 14th October. By then, the government contribution had been credited to my E.ON Next account so it was used against my October payment, which actually covered September's energy usage.
My guess with @UKDave51's email is that E.ON Next have scheduled your next DD, but if your payment is only going to be £59 then they won't actually take anything from your bank account because it'll be covered by the government contribution of £66. Fingers crossed that'll be what happens, anyway.