Hiking payments

I have received my first bill after the rise (Apr 02 to May 03) totalling just over £31. My credit is showing as around £200. My payments at present are £74 per month. Bulb as suggesting I increase my payments to over £90 per month.
I understand that this months usage is far less than normal but we are now entering the Summer when my bills are much lower, so why the hike.
The credit of £200 approx is just that. A credit to cover for any unexpected additional cost.
Can Bulb explain this to me?

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Help may be at hand…

Sky News 3rd May 2022

“Energy companies found to be clawing in more than they should from customers will face substantial fines, according to the business secretary, as energy bills continue to shoot up.”

Only time will tell if this will stop them.

Thanks Bulberino, I read that this morning after i’d posted. Regulator looking closely at it.
Well spotted You!!

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Hi @Hatchi

Thank you for your patience, with bulb we charge you at the start of the month, and spread your costs evenly over the year so that you have enough credit stored in summer for your winter bills. We buy our energy in advance which means that we’re able to offer a cheaper tariff for all our members - but in order to provide that cheaper tariff, we need our members to keep credit in their account.

If not, we’d have to increase our tariff relative to what it is now to help us build a cash reserve for winter months. So just before winter, your account should have enough credit to see you through the colder months, as well as enough credit to cover next month’s payment. Ultimately you only pay for what you use, so if you’re paying too much then this excess credit will build up in your Bulb Account and the payment can be brought down, or you can have this refunded. If you aren’t paying in enough, then a debit will build up and you would need to pay this off at some point.

If you would like to pay via variable direct debit we can offer this too.
This means your direct debit will still stand but when your statement is produced each month, you will be charged for the statement amount. For example, if your statement in June states you’ve used £100 of energy, this exact amount will be taken via direct debit. If the funds are not available, and we cannot take the payment within 14 days of your statement date, you will be charged a missed payment fee.

This is a less flexible option in regards to higher statements, as all statements need to be paid in full, and does require you to give us meter readings unless you have a smart reading come through. So no more than 3 days before your statement to ensure an accurate bill. This also means you will not generate any credit towards your winter bill where bills are the most highest. - let me know if you wish for me to set this up on your account

–Suki :hibiscus: