Why does it send a statement showing account in debit by XXX when...

…there is a scheduled DD payment just a couple of days later that would pay the bulk of XXX off.

It would seem more logical, to me, if the statement came after the pending payment.

It’s by no means a big deal, I just wondered why it does it like this :o)

Maybe the timing varies from person to person and that’s just the way mine is?

In theory you should be i month advance payment, so you send readings it works out the bill and gives you the balance so at that point it shows if you have enough in your account to pay the bill. Then your dd goes in for the current months usage.
So in theory you should be able to pay the bill before the dd is in your account.

My account date is the 28th of the month as is my Direct Debit payment, though, whilst my monthly statement arrives on the 28th, the direct Debit doesn’t go through for a few more days and so I have to be in effect two months in advance so as not go in debt on my account.

I’m guessing this is what the OP is referring to.

What would be the effect on my account, if any, if I change my Direct Debit date to cover this?

For instance: if I change my Direct debit payment to the 25th of the month would my accounting date still be the 28th of the month or will that change as well?

For instance: if I change my Direct debit payment to the 25th of the month would my accounting date still be the 28th of the month or will that change as well?

The statement date and payment date are connected and the difference between them will not change.

I’m not sure I understand the statement about having to effectively be two months in credit. If your monthly payment is £100, that goes into your account in advance at the point you join Bulb, then a statement takes out say £70, then a few days later another £100 goes in. Where does the effective requirement of 2 months in credit come from?

I'm not sure I understand the statement about having to effectively be two months in credit. If your monthly payment is £100, that goes into your account in advance at the point you join Bulb, then a statement takes out say £70, then a few days later another £100 goes in. Where does the effective requirement of 2 months in credit come from?

You have £100 when you join.
Your Bill is £70.
You balance is £30 then the £100 dd goes in
Thats £130 credit at that point which is nearly 2 months based on a £70 bill.
However bills are not constant especially over the colder months.

I'm not sure I understand the statement about having to effectively be two months in credit. If your monthly payment is £100, that goes into your account in advance at the point you join Bulb, then a statement takes out say £70, then a few days later another £100 goes in. Where does the effective requirement of 2 months in credit come from?

Using your example “If your monthly payment is £100, that goes into your account in advance at the point you join Bulb, then a statement takes out say £70, then a few days later another £100 goes in”

You needed two months of payments of £100 to pay the £70 and keep your account in credit. Over the space of “a few days” two monthly payments were required.

If my month in advance went into my account before the bill date, that would cover that months payment and I wouldn’t need to be a month in advance for almost the whole month before my bill date.

I accept this is the way Bulb keep their prices down and if, as you say, “the statement date and payment date are connected and the difference between them will not change”, then that’s the way the account works. no problem.

Thanks for your input.

@anth0ny

That’s confusing to say over the space of “a few days” two monthly payments were required.

For example if you switched on say 25 January, a DD payment will be taken to nominally cover in advance the energy used during the period from 25 January to 24 February.

The next payment will be taken on 25 February (a month later) to nominally cover the energy used period from 25 February to 24 March.

If my month in advance went into my account before the bill date, that would cover that months payment and I wouldn't need to be a month in advance for almost the whole month before my bill date.

That’s true, but the requirement is to be in credit by 1 month for the whole month not just a few days.

By your example, you make your monthly payment then a few days later it goes out again on the bill date. Your account never goes overdrawn, but the average account balance will be low/near zero as opposed to the average balance being roughly equal to 1 monthly payment.

To be honest, there are bigger things to worry about than the exact date of payments …

@anth0ny

That’s confusing to say over the space of “a few days” two monthly payments were required.

For example if you switched on say 25 January, a DD payment will be taken to nominally cover in advance the energy used during the period from 25 January to 24 February.

The next payment will be taken on 25 February (a month later) to nominally cover the energy used period from 25 February to 24 March.

Exactly. But @anth0ny wants to reverse the phase of those payments. e.g. with made up numbers:

Scenario 1: Average balance = High

25 January - Balance £100
24 February - Debit £70 (Balance £30)
25 February - Credit £100 (Balance £130)

Scenario 2: Average balance = Low

25 January - Balance £0
24 February - Credit £100 (Balance £100)
25 February - Debit £70 (Balance £30)

Both scenarios work out the same of course, but scenario 1 is better for Bulb’s cashflow and how it’s intended to work.

@Hooloovoo

My comment was to address the statement by @anth0ny about payment a few days apart.

The OP @oviano was also making the same point by @anth0ny by slight tweaking of the payment dates to avoid Bulb having a DD payment for a complete month. However it is clearly obvious to me anyway that paying in advance doesn’t mean you have energy for almost a complete month and then pay nearly at the end of the period of energy supply.