I’ve recently increased my monthly payment, however, I my statement says I am still in debit. Will this even out through the summer months. I changed from British Gas as the prices were getting ludicrous but if I pay off what I am now in debit for it would mean that the monthly payments would exceed what I was paying to British Gas.
Does the information on this link answer your query: How Bulb charges for energy usage – Bulb
if I pay off what I am now in debit for it would mean that the monthly payments would exceed what I was paying to British Gas.
Don’t confuse the monthly payment with the bill, i.e., what you are actually paying for energy.
The monthly payment is only a gross estimate of your expected usage over the next 12 months, then divided by 12. Each monthly payment bears almost no relation to the cost of energy for any given specific month. In order to know if you’re saving money, you need to compare the actual unit rates (pence per kWh) and standing charges.
It sounds like you’ve been underpaying for a while. So you have a choice of either a one-off top up payment if you can manage the cashflow, or if not a higher monthly payment for a few months while you pay off the debt and then subsequently reduce the monthly payment again down to something reasonable for your expected usage.
Bear in mind that, yes, you could well still be paying more than you paid British Gas for your energy! Prices have gone up across the whole market over the last few months. In a rising market the game is to minimise your increase, not necessarily make an absolute saving. You need to compare Bulb’s rates with what you would be paying British Gas now, not what you paid over the last 12 months.
What i believe is with Bulb is they are energy brokers and you are paying for the Gas and Elec before you use it… Hence why the costs go up as an estimation of your usage throughout the year. You will be in debt in the winter months and this will accumulate back in the summer. But as previously said… beware of the rises. I have looked into changing suppliers and all comparison sites save me on average £12. Not worth the hassle for a £1 a month. Hope that helps?
Thanks for the replies. When I changed suppliers to Bulb I worked out what I had used for the previous 12 months and the cost per kWh and averaged it over 12 months. The comparison to Bulb prices showed a saving of almost £60 per month which is a hell of a lot in my budget. However, this price only held for a few months then winter set in, and of course, the prices now are averaged over what I have used in the last few months which is obviously much more, and I expected it to be a little more as I’ve got my elderly father to move in with me. I shall probably make an extra payment and reduce in the summer months