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Standing charges versus variable charges

  • 13 August 2019
  • 5 replies
  • 286 views

Why can this provider not charge for energy used as a result of actual readings rather than set estimated summer and winter charges.
​In my case I seem to carry a reasonable credit from summer to winter. I would prefer actual billing
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Best answer by Angelabikerbabe 13 August 2019, 08:01

Hi, I'm pretty sure other suppliers have set monthly DDs too.
PP do charge on actual usage, you have to submit readings every month.
it depends when you submit your readings. For example, If you submit them 2 days before your payment date, PP will estimate the usage for the last 3 days, but use your readings for the rest of the month.
When PP request my readings , I don't send my readings until the last day possible. Ie PP say they need them by 1st, I send mine 31st. And mine are not being estimated.

also, DDs get revviewed twice a year, so if your using more or less, your DD will be adjusted accordingly.
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Userlevel 7
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Hi, I'm pretty sure other suppliers have set monthly DDs too.
PP do charge on actual usage, you have to submit readings every month.
it depends when you submit your readings. For example, If you submit them 2 days before your payment date, PP will estimate the usage for the last 3 days, but use your readings for the rest of the month.
When PP request my readings , I don't send my readings until the last day possible. Ie PP say they need them by 1st, I send mine 31st. And mine are not being estimated.

also, DDs get revviewed twice a year, so if your using more or less, your DD will be adjusted accordingly.
Userlevel 7
Badge +9
Des martin;35243:
Why can this provider not charge for energy used as a result of actual readings rather than set estimated summer and winter charges.
​In my case I seem to carry a reasonable credit from summer to winter. I would prefer actual billing


Be interesting to know if anyone has found a supplier that offers a monthly variable direct debit. It may happen if and when smart meters finally do become both common and effective, but I suspect until then that estimated direct debits adjusted once or twice a year will remain the standard. I don't think companies are ready to trust customers' readings as a basis for variable monthly payments!

Stephen
Would it not be much harder to budget if you had variable monthly payments? In my case my credit card bill is much higher in Jan so when they take the 5% its expensive. I would imagine my gas and electric also varies with celebrations / weather etc. I like being able to put in my budget a fixed amount each month for most of my bills.
It will be nice either using smart meters or giving the reading every month (I cant be the only one who is sometimes late or forgets can I?) to get the figure closer to actual usage but I would think that having to run an algorythem every month to work out your bill and then request that much from the bank would take a fair amount of programming time and effort.

Erika
Userlevel 7
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hi Des
effectively you're arguing for a pre-pay, or pay as you use. As said maybe a long way in the future, but I have to ask if you were in debit in the cold period would you be arguing that PP should take a higher payment. It's currently evened out somewhat by the 40/60 split, I personally think that's a good compromise, but some others would rather have a fixed payment all year, and very few (like you) effectively want it to be like the pre-pay (which in my opinion is the worst of all options, I think it would lead to complete chaos)
There is a however a solution for you which would involve a little intervention on your part and which would bring it nearer to what you want; you could reduce your DD slightly in April and increase it slightly in October.
Not ideal but if you're building up too much credit in the warmer months it would help.
​Don't forget though your credit includes the DD payment which is paid in advance so that might make it look higher than it really is.

Des martin;35243:
Why can this provider not charge for energy used as a result of actual readings rather than set estimated summer and winter charges.
​In my case I seem to carry a reasonable credit from summer to winter. I would prefer actual billing
I have used a smart meter in my previous property.
It has a balance and you can set it up that if the balance drops below £10 it will top itself up from your debit card a set amount.
The company that set it up for me was Ovo, but then they transferred me to Boost. I decided on Pure Planet as Boost was quite expensive on my plan.

woz;35277:
hi Des
effectively you're arguing for a pre-pay, or pay as you use. As said maybe a long way in the future, but I have to ask if you were in debit in the cold period would you be arguing that PP should take a higher payment. It's currently evened out somewhat by the 40/60 split, I personally think that's a good compromise, but some others would rather have a fixed payment all year, and very few (like you) effectively want it to be like the pre-pay (which in my opinion is the worst of all options, I think it would lead to complete chaos)
There is a however a solution for you which would involve a little intervention on your part and which would bring it nearer to what you want; you could reduce your DD slightly in April and increase it slightly in October.
Not ideal but if you're building up too much credit in the warmer months it would help.
​Don't forget though your credit includes the DD payment which is paid in advance so that might make it look higher than it really is.

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