Coincidentally, I have just received an email telling me my DD has to rise by £17.94p per month to £215.09p for the last 9 months of my contract, no doubt to cover my Estimated Annual Usage as worked out by the means posted by @
Mailman.
I have used my last year's actual usage, extrapolated using my first two months of this year's usage compared to the same period last year, and applied my considerable credit balance of £700 and future DDs at today's rate (next DD due in one week's time) to work things out for myself. I have predicted that if my DD remains the same as it is now then my account balance at the end of my contract will be £39 in credit. Pretty close to perfect.
With the rise in the monthly DD, I predict my account will be £200 in credit at the end of my current contract.
I can wait until the DD rises and then reduce it by 10% in my online account. If this is allowed to stand then I predict my account would be just £7 in credit at the end of the contract. Pretty much spot on. The thing is, if I reduce my DD by 10%, will they just recalculate using the EAC formula and force it up again?
Using the EAC formula to calculate my monthly DD means my total DD payments in this annual contract will be about £160 more than they would have been if my last year's consumption was used as a guide.
I'm going to allow the DD rise to go ahead in order to build up a buffer against a colder winter (or warmer house) than last year. It will be interesting to see my account balance at the end of the contract. Will it be the £200 credit I have predicted in the bold text above?
Time will tell.