Direct Debit Increased While in Credit – What to Know

Suppliers do not only check your current balance. They also guess how much energy you will use in the year. If the cost of energy is high or winter is coming, they may raise your direct debit payments. This can happen even if you have much credit on your energy account. They do this to stop you from paying too little and to keep bills steadier over the year.

If you feel the increase is not fair, you can question it. You may ask to see how they worked out the new payment amount. You also can ask for a review of your direct debit payments.

A fixed direct debit means you pay the same set amount each month. This is worked out using an estimate of your yearly usage. A fixed direct debit can help you with budgeting. It also keeps your regular living costs steady. But if you use less energy than they think you will, this can leave you with much credit at the end.

A variable direct debit is different. The payment amount changes every month. It depends on how much gas or electricity you used in that time. A variable direct debit can help you avoid overpaying if you use less energy. But if you use more energy in the winter, it means you could face higher winter payments. This can make it hard for some people to plan their money.

Both direct debit types have their pros and cons. You can talk with your supplier about which is better for you.

Yes. If your direct debit payments seem too high or do not match your real energy use, you can give your supplier up-to-date meter readings or smart meter data. You can ask for them to work out the payments again. Suppliers must keep your payments at the right level by Ofgem rules. If you have built up much credit, you can ask to get some back as a refund to your bank account or you can ask them to lower your monthly payments. If your supplier does not agree without a good reason, you can take your complaint to the advice consumer service or the Energy Ombudsman.

Suppliers have to give extra support to direct debit customers who need it. This support can be things like giving you more time to pay your direct debit, stopping the payments for a short time, or helping you use hardship funds. If you want more help, you can talk to the advice consumer service. A trained adviser can speak with you on the phone or through online chat to walk you through your choices. Also, if you live in England, Scotland, or Wales, you might be able to get regional energy grants or join efficiency schemes. These can help cut down the amount of energy you use to heat your home. This means your payment amount gets lower, and you can get lower bills in the long run.

If you’re on a standard variable tariff, the payment amount for your direct debit goes up or down with Ofgem’s price cap. Ofgem looks at the price cap four times a year—in January, April, July, and October. The price cap sets the highest unit rates that suppliers can ask for. When the cap goes up, your direct debit payments will usually go up too, even if you have credit. If the cap goes down, your payments should go down. Sometimes, though, suppliers take time to lower them. If you follow news about the price cap, you can know what changes to expect and ask your supplier to adjust your debit amount when needed.

If you have a lot of credit in your energy account, you can ask for a refund. The rules set by Ofgem say that suppliers need to process refunds quickly, often in up to 10 working days. The money goes right into your bank account. Some suppliers give refunds on their own at the end of the year. Others ask you to request it.

If your supplier will not give you a refund and does not have a good reason, ask them to give you a written answer. If you need to go further, you can push the issue.

Keep your meter readings up to date. You can also use an app or online chat to track your account. This makes it easier to keep an eye on your credit and ask for refunds.

Yes. In Scotland, the winters last longer and it gets colder. Because of this, people there usually use more energy to keep homes warm. This need for more heating leads to higher winter payments. In England and Wales, the government has plans like the Great British Insulation Scheme. These help people use less energy for heating, which can lead to lower bills. Local councils and devolved governments also offer extra support. So, you should check the support that is available in your area.

Suppliers say it is good to keep a buffer for direct debit payments. This helps your payments stay even the whole year. A household might get much credit in summer when they use less energy. Later, this extra money helps pay for higher winter payments.

Critics think that having a buffer uses up customers’ money when it should not. But Ofgem rules say that suppliers must keep balances fair and pay back extra money if a customer asks. If you feel your supplier holds too much, you can ask for your balance to be sent back. Also, you may ask for your payment amount to change to the right level.

The Direct Debit Guarantee is there to help all UK direct debit customers, including those who pay energy bills this way. With this guarantee, you can feel safe. If your payment amount goes up without warning or for a bad reason, you have rights. This safeguard makes sure people who pay by direct debit in the UK are protected at all times.

• You must get advance notice, usually about 10 working days, before any change with your direct debit payments.
• If there is an error, like a supplier taking too much money, making the debit too soon, or not giving you proper notice, you will get an instant refund from your bank account because of the Guarantee.
• You can stop a direct debit whenever you want. This gives you control if your supplier doesn’t keep your payments at the right level.

This protection helps you feel safe about your money. You won’t lose cash for something that isn’t right. If your direct debit goes up while you are still in credit and you feel it should not, you can ask your bank for help with the direct debit guarantee and not wait for the supplier to sort it out. The direct debit guarantee gives every household comfort. It is like a safety net if anything goes wrong with debit.