[meldrewreborn]

OFGEM sent me the following in relation to the setting of Direct Debits.....

"Suppliers are required to take all reasonable steps to ensure that fixed direct debit payments are based on the best and most up to date information they have about customers’ consumption levels.

Under Condition 27 of The Supply Licence Conditions:

• The supplier must provide to each such domestic customer an explanation in clear, plain and intelligible language of the basis upon which a fixed amount (and any variation of that fixed amount) has been determined.
• The supplier must ensure that the fixed amount of the regular direct debit payment is based on the best and most current information available (or which reasonably ought to be available) to the supplier, including information as to the quantity of electricity which the licensee reasonably estimates has been or will be supplied under the relevant domestic supply contract"

Italicised words are by me.


I am of the opinion that if the supplier relies on industry supplied EAC data in preference to information they hold themselves from customer readings, then the supplier is in breach of their licence conditions. And I'm not certain if requests sent from Eon Next requesting (demanding?) changes to a customers DD comply with the requirement to "provide to each such domestic customer an explanation in clear, plain and intelligible language of the basis upon which a fixed amount (and any variation of that fixed amount) has been determined." What do you think?

[retrotecchie]

@meldrewreborn

I think you know what I think!

1. Variable Direct Debit is the best method to ensure you don't build up any credit or debit from month to month.
2. OFGEM haven't got any 'teeth'.
3. This EAC nonsense really has to stop!!! I've not seen anyone yet whose figures match up to this mystery figure plucked out of the air with no explanation.

[Tommysgirl]

@meldrewreborn

I think much the same as @retrotecchie

1: Variable Direct Debit is the best way to avoid inaccurate calculations of fixed amounts, and your bill is cleared to £0 each month. I calculate my own estimated usage, and set an amount aside during the summer months to cover the higher gas usage winter months;
2: OFGEM always appear to be more 'on the side' of the suppliers, especially when setting the price caps;
3: I don't know anyone who's actual figures match up to the EAC amounts. I left British Gas years ago because they used to calculate a figure based on my previous 6 months usage, then divide it by five to arrive at a monthly DD amount, and they refused to change it. They didn't explain when I asked them how they'd calculated it, but I figured it out using a pen and paper. I've paid by variable DD ever since.

[meldrewreborn]

I’m not against fixed Direct Debit, because I can understand that people who have salaries with a fairly set amount coming in each month, can appreciate knowing that their outgoings will be a standard amount each month.

Equally I can see that variable DD has its attractions too. But I dislike the notion that suppliers set Fixed DD at too high a rate and manipulate them so that customers have surprisingly high net aggregate credit balances to the advantage of the suppliers. And when there are rules I want them to be applied!!!!