Budget billing too high: What to do if the supplier applies too high budget billings?

What is budget billing?

Your billings are something like “electricity in installments”: Each month, you pay an amount based on your annual consumption forecast (i.e. the “extrapolation” of your electricity consumption for the next 12 months, which is based on your previous data such as the previous year's statement or on averages) and your tariff.

At the end of the billing period, we compare what you have actually used with the deductions you have already paid.

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Remember:

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• You paid too much → Money back to you.
• You paid too little → Additional payments made by you.

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How is there a higher discount than in the contract confirmation?

The discount amount may differ from the original contract confirmation because it is initially based on an estimate, but is later adjusted to your actual consumption.

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(Please note that the figures used here are for illustrative purposes only and do not necessarily reflect actual costs or prices.)

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Suppose that when you conclude a contract, for example via a comparison portal such as Check24 or Verivox, you estimate that you 3,500 kWh consumes per year. On this basis, we first calculate your monthly discount — for example 80€ per month.

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However, a few weeks later, your network operator reports to us your actual consumption forecast, which is based on a current meter reading or existing consumption data. It turns out that:

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• Your real expected annual consumption is 4,200 kWh, i.e. higher than estimated. Accordingly, the discount increases, for example, to 97€ per monthso that you don't just have a large back payment at the end of the year.

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Or vice versa:

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• Your expected consumption is only 2,900 kWh, i.e. lower than estimated. Then your discount drops, for example, to 63€ per month.

I got money back but my discount was increased — why?

Because your new discount is based on current prices and forecasts — regardless of the one-time credit balance.

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Let's say you have a balance of 60€because you've used less than expected in the last few months. Nevertheless, your new monthly discount rises from 65€ upon 97€.

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The reason: The discount is not based on your one-time balance, but on future expectations, e.g.:

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Since the start of your contract, stock market electricity prices have risen, at the same time, your current consumption forecast shows that you are more likely to consume more in the future, and network charges or levies have also increased.

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(Please note that the figures used here are for illustrative purposes only and do not necessarily reflect actual costs or prices.)

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These factors have a direct impact on the calculation of your new discount.

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That means:

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• You can have a credit today (because you've used less so far), but your future consumption at higher prices will still result in a higher discount.
• If the new discount seems too high for you, you can always agree with us whether we will adjust it at your request — for example, to an intermediate value that is better suited to your monthly planning.

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What is the difference between a rate and a statement?

The discount or advance payments are advance payments, while the statement shows actual consumption and costs.

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You can remember:
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• Your deductions or advance payments are regular advance payments based on a consumption estimate.
• The statement at the end of the period shows your actual consumption and offsets this against the reductions.
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This creates either a credit or an additional payment — depending on whether your actual consumption was above or below the estimate.