On 2006-03-17, Andy Hall wrote:

I've experienced that with BG, Npower and Powergen, sometimes to the
tune of 20% overpayment over the billing year.

I'm not in the business of lending money to utility companies -
especially not at zero interest.

You may well be losing money by doing this, especially with the
recent large increases in energy costs, here's why.

If you pay just what you are (rightfully) billed for the energy
you have used, you will start paying for more expensive energy
right away. I have just got my latest bill and the supplier has
applied the rate increase pro-rata, as it took effect part way
through my billing period.
However, if you had over-estimated your usage in the past, you'd
be "in credit" and would therefore have paid for more energy at
the _lower_ rate than you had actually used at this rate (and
therefore paid for less at the higher rate).

Obviously this method, which is similar to "buying futures" in
energy, only works if energy prices are rising. If they are falling
you should endeavour to under-estimate your usage.

HTH

Pete

--
.................................................. .........................
.. never trust a man who, when left alone ...... Pete Lynch .
.. in a room with a tea cosy ...... Marlow, England .
.. doesn't try it on (Billy Connolly) .....................................