Bills

When I joined Bulb about 6 months ago I transferred because you quoted me £80 something per month based on your questions, which was a saving on the £135 I was paying npower. I’m now paying you £151 per month, almost double your estimate & indeed definately not a saving on my npower bill of old.

Help me out here with this because right now it doesn’t feel like I made a good choice. 3 other of our household bills have increased in jan increasing our monthly outgoings by £150 per month. My wages haven’t increased and nor have my husbands.

Help me out here with this because right now it doesn’t feel like I made a good choice. 3 other of our household bills have increased in jan increasing our monthly outgoings by £150 per month. My wages haven’t increased and nor have my husbands.

Firstly, you’re confusing the payment you make by direct debit with the bill. They are not the same thing. You hold an account with Bulb that you can think of as an extension of your bank account. Payments you make by direct debit are credited to your account at Bulb. Each month a bill is produced based on the meter readings you have supplied, and this is debited from your Bulb account. The amount you pay per month is based on making an estimate of your expected usage over the next 12 months, and dividing that by 12 to obtain the monthly payment.

If you have been underpaying for some time, either because you haven’t submitted any meter readings and low-estimates have been made, or because of price increases, then your account at Bulb will have gone overdrawn. Your monthly payment will have to increase both to gradually repay the debt, and also to meet your increased usage with respect to the original estimate. This can mean that your monthly payment appears very high for the time it takes to pay off the debt, followed by the monthly payment reducing to a more typical level once your previous underpayment has been cleared. The reverse can also happen, if you haven’t submitted any meter readings then it’s likely that the estimates used have been far too high, meaning your payments have increased unnecessarily. Either way, bills can only be accurate if accurate information is provided. Are you bills all based on actual meter readings?

Also, and this is very important, remember as I said above that the monthly payment is not the bill. You could be paying £500 per month but this in no way automatically means that Bulb have suddenly become massively expensive. It just means that you’re building up a large credit in your Bulb account.

Due to these two issues, it’s almost impossible to say if your bills have gone up or down based solely on the amount of your direct debit and so you should not attempt to do this. The values that matter are the base cost of your bills - the standing charge (pence per day) and the unit rate (pence per kWh). It is these values that you should compare with other suppliers, and not compare based on the annual cost of a vague estimate of how much energy you might use over the next 12 months. How much does Bulb’s actual tariff compare to what you could be paying with your previous supplier? Remember that the cost of energy has risen for the whole market, and so you can’t compare what you’re paying Bulb now with what you used to pay your previous supplier. You must compare what you’re paying now, with the best offer you could achieve now from another supplier. In a rising market the game is to minimise the increase, not necessarily expect an actual absolute reduction.

In summary: The comparison you’re making with your direct debit is too simple. There are many other variables to consider. The main one being to compare the actual cost of energy. If you do this, you’ll find Bulb are still one of the cheapest suppliers, and certainly cheaper than anything the “big 6” could offer you. There are other reasons why your direct debit has increased so much, but it’s hard to say exactly what without further details about your account history.

When I joined Bulb about 6 months ago I transferred because you quoted me £80 something per month based on your questions, which was a saving on the £135 I was paying npower. I’m now paying you £151 per month, almost double your estimate & indeed definately not a saving on my npower bill of old.

Help me out here with this because right now it doesn’t feel like I made a good choice. 3 other of our household bills have increased in jan increasing our monthly outgoings by £150 per month. My wages haven’t increased and nor have my husbands.

Do you realise this is a public forum seen by many?

When you requested a quote from Bulb did you enter your previous annual energy usage (in kWh) or the size of your property? The latter is normally less accurate then if you enter the previous annual energy usage.

Do you submit monthly meter readings and are these showing on your bill or statement, only in this way can your bills be accurate?

I assume from what you are saying , it is your Direct Debit which is £151 as opposed to your actual cost of energy, is this a correct assumption?

Thank you for your replies.

Thank you for your replies.

Really, that’s it? I thought you wanted help working out why you direct debit payment was so high, and you’d be coming back with more information.