Outfox The Market Direct Debit changes

DonalK

As a recap, I had the five emails, sent a stiff letter of complaint with supporting facts, got the Joella edited response and then later got the "we might be overdoing this" email.

I sent my original emails, reply to Joella and photos of meter readings to OTM's two new email addresses (on their last email) along with my forecasted usage based on my experience and the request that they reconsider their move given my credit balance, usage and ... frankly I'll cancel the DD and walk away ... sure I save a few quid per month but it's not worth the hassle if there's no trust or respect.

Anyhow, despite having a reply on Friday from Joella and the promise of a review to come, this morning I had a notification from my bank that there was a new DD on my account - I logged in an checked and the OTM one is gone but in it's place is one for FoxGlove Energy (yes I know the relationship and no I am not wrong on the name change) and a new reference too.

Seems like things are pressing ahead regardless of any complaints, there's some accounts restructuring going on too (alongside price increases and variable DD) and perhaps someone new at the financial helm taking drastic actions for whatever end-game. I did ponder if there's a huge price rise down the line and well, it's easier for them to have the cash on hand than ask for it ... if you see what I mean.

Monday will bring something new I am sure - Ofgem, Ombudsman, Energywatch & MSE team are on the case from my replies and the stories released since.

System

Pete99 wrote: »

I was waiting to see if they'd realize they'd made a big mistake forcing this on their customers, I don't understand their reasoning on splitting the DD, the whole point of Direct Debit is that it's always the same otherwise they might as well just use pay on bill which I prefer, but I suppose they get a lot of running capital from holding customers money, anyway obviously not going to happen so I've just started to switch to Octopus Energy which is still a fixed DD, only £10 more per month and a 12 months fix but no exit fee so if they start playing that split DD game I'll be off again, we'll soon be back to an open fire and candles at this rate.

Oh no it isn’t. Octopus Energy has just increased my monthly DD from £40 to £88 per month. There is no such thing as a fixed DD. If you are switching to Octopus, then you are signing up to a variable monthly DD. In fairness to Octopus, they do provide a DD notification each month and they will discuss the DD amount with you.

pjohnson44926

Had the same problem ourselves with this Utility company. Only joined in June and already three price increases !!! Ombudsman says they have no authority in this matter !! ridiculous . Now Outfox The market want to increase monthly payment in winter by nearly double . I have said -"NO " . The idea of Direct debit - monthly payments are to spread the cost out EVENLY over a year .

Swoosh84

I switched and cancelled the DD, be aware there are reports on Facebook and Twitter of outfox reinstating the cancelled DDs. Keep an eye on it guys!

J

Pete99

I know that DD is variable but we're all between a rock and a hard place, where do you switch to when they're all about the same, but when they only give 10 days notice and it takes around 21days to switch it's better to jump sooner rather than later, and as this Octopus tariff doesn't have an exit fee this seemed to be the best option.

Merlin139

Just spent 45 minutes talking to someone on the phone who despite having my account open in front of her could not grasp the problem that my original DD (Direct Debit) x 12 adds up to more than the companies EAC shown of my statements.

She was obviously working to a script and kept saying she understood how I felt but the new policy was instated to make sure my account does not go into debit.

Eventually got passed to a manager who admitted to me on the phone that my original DD more than covered my EAC and that it should not be increased. Went to get someone from credit control to speak to me but too busy. When I stated that because she could not confirm someone would get back to me before my DD was due on the 28th I would cancel my DD she said if I did that then they would not be able to collect a new DD for 14 days and that's when the account gets messy.

I have now cancelled my DD and informed OFTM of this fact.

I would leave but its the principle I am fighting for and the fact that I am on a fixed 18 month Tariff from Feb 2018 and I cannot find anything cheaper anywhere else. Paying 9.93p for Electric and 3.25p for Gas (Membership Fee £6.99)

System

Pete99 wrote: »

I know that DD is variable but we're all between a rock and a hard place, where do you switch to when they're all about the same, but when they only give 10 days notice and it takes around 21days to switch it's better to jump sooner rather than later, and as this Octopus tariff doesn't have an exit fee this seemed to be the best option.

This is what you have signed up to with Octopus (and it is the same for most small/cheaper suppliers):

Quote: 9.2.1. (i) you should keep your account in credit, Unquote

For late season switches, it is just not possible for a home to be heated and for the DD payment to be kept at 1/12 of the annual cost without a debit balance building up. Arguably, larger suppliers can balance out customer credit and debit balances without the need for additional Bank borrowing. Moreover, larger suppliers tend to buy their energy months/years in advance of supply.

alittleowl

The Citizens Advice Bureau has advised me: "If your gas or electricity supplier increases its prices, they should tell you at least 30 days before the change takes place" whereas OtM have only given us 10 days' notice of this change so surely Ofgem could/should get involved?

My account is in credit with them to the tune of £200. On the phone OtM refused to use this to offset my new bill, increased by 75% from last month's, so I've instructed my bank to cancel my direct debit and I'm going to switch, possibly back to one of the Big 6. I'd rather pay a bit more to a reputable company than be robbed blind by a shambolic cowboy outfit like OtM have turned out to be.

System

alittleowl wrote: »

The Citizens Advice Bureau has advised me: "If your gas or electricity supplier increases its prices, they should tell you at least 30 days before the change takes place" whereas OtM have only given us 10 days' notice of this change so surely Ofgem could/should get involved?

My account is in credit with them to the tune of £200. On the phone OtM refused to use this to offset my new bill, increased by 75% from last month's, so I've instructed my bank to cancel my direct debit and I'm going to switch, possibly back to one of the Big 6. I'd rather pay a bit more to a reputable company than be robbed blind by a shambolic cowboy outfit like OtM have turned out to be.

Please do not confuse DD payments with a change of tariff. DD payments are only payments made on account which go into a ‘piggy bank’ (if you like) from which charges for energy used are deducted. Under DD Regulations, if you signed up to a variable DD, the company taking your money has to give you 10 days notice of a change.

If you are on a variable energy tariff, then the supplier has to give you 30 days notice of an increase in tariff costs.. You then have the option to stay or switch to a new supplier. If you stay, then increased tariff costs will lead to a higher monthly DD payment.

If you switch to a new supplier today, then given that the switch will go through in December then you can expect to pay a higher than 1/12 cost DD. Most smaller suppliers now insist on (a) a payment in advance of supply, and (b) enough credit in the piggy bank to cover the following month’s charges.

cyka

Hengus wrote: »

Oh no it isn’t. Octopus Energy has just increased my monthly DD from £40 to £88 per month. There is no such thing as a fixed DD. If you are switching to Octopus, then you are signing up to a variable monthly DD. In fairness to Octopus, they do provide a DD notification each month and they will discuss the DD amount with you.

Variables are fine in the sense that your paying for the energy you're using. Outfox increased annual consumption estimation by 20% and increased winter DD by another 75% with some are even higher. Ignoring any credits in the account and no consultation with its cusomters if this was a good idea.