If you joined People’s Energy recently but your Direct Debit has gone up, it’s usually because we now have information that shows you’re likely to use more energy than we originally estimated when you first signed up.
When you sign up with People’s Energy, we ask you to provide us with your annual energy usage. It helps us work out how much energy you’re likely to use in the year ahead. Some people opt for us to estimate their annual energy usage when they sign up, rather than providing an actual figure for how much energy they’ve used over the past year. We use average energy consumption figures from Ofgem to do this. Or, if you've joined us via an auto-switching site, we'll use the estimate they gave us.
Sometimes this estimate doesn’t line up with the actual amount of energy you use. If that’s the case, and you’re using more energy than we estimated on your behalf, then your Direct Debit may set be too low. Over time your account may fall into debit (you'll owe us money), as you won't be paying enough to cover the cost of the energy you're using - which could mean an unexpected bill at the end of your contract.
We normally get the information we need to check how your actual energy usage compares to the usage we’ve estimated for you shortly after you’ve switched. It includes your latest meter readings, and the historical energy consumption for the property you live in. At this point, if we can see that you’re using, or likely to use, more energy than you’re paying for, then we’ll adjust your monthly payments to cover the cost of that extra energy – and stop your account balance from slipping into debit.