Outfox The Market Direct Debit changes

alittleowl

Hengus wrote: »

I can understand the frustration and annoyance that OFTM's change of policy has generated. I have ditched and switched because I was annoyed at a supplier, and it ended up costing me more than if I had stayed. A few facts to ponder on:

1. OFTM is not asking you to pay anymore for the energy that you use based on your agreed tariff.

2. It is rescheduling your payments: more in Winter and less in Summer.

3. Switching today will take at least 17 days and possibly 35 days.

4. OFTM has 6 weeks after the date of actual transfer to raise a Final Bill. Credit repayments will then follow.

5. Switching late in the season will inevitably lead to a higher monthly DD as most smaller suppliers have ts and cs which state that there must be enough credit to cover the following month's charges. 1/12 of the annual cost will not be enough for most homes and a lot of the smaller suppliers now charge more per month for late in year switches.

6. If OFTM goes under, then the bailout cost will be reflected in all our future bills.

7. In the event of a supplier failure, all credit balances are now 100% protected under Ofgem's SoLR regulations.

In sum, OFTM customers switching today could be in for some short term financial pain. And, finally, before anyone asks, I do not work for or represent any entity in the energy sector

Rather suspicious, your last sentence. I think you've missed several points, firstly, that OFTM _are_ asking its customers to pay more: they have added 25% to our EAC with no justification whatsoever. I have provided monthly meter readings for the past 18 months. There is no reason to think I will _use_ 25% more energy this winter than last. None at all. This year I've replaced our old fridge, freezer and washing machine for more energy efficient models, we've had single thickness brick wall insulated, we've had our roof reinsulated too. Zero justification.

You're also _really_ missing the point that for people on a low fixed income who have carefully worked out their budget for the next 12 months, the change of policy to suddenly increase the winter payments just before the start of the winter has put us in an impossible situation. If they'd made this change in March and said "for the next six months you will pay less than your EAC / 12 but in the winter you will pay more" then fine, I could have put the difference into a savings account. I knew I was on a variable rate so and knew energy prices had gone up so had budgeted for an increase of around 25%: their proposed increase of 75% just before Christmas is literally impossible for me to afford: the promise of lower bills in a few months time is of no use to me.

And, as with many other people here they are holding two months worth of my bills n credit which they told me they could not and would not use to offset the new DD amount. So I have no choice but to say to them "your new amount will cause me serious financial hardship, and I have no access to an overdraft facility so please just give me my money back and I'll take my custom elsewhere" to which their response is "okay, **** off then, you'll get your money when we get round to it after you've switched." The customer "service" has been truly appalling. Yes, my unit rate is now going to be higher with e.on, as will my monthly bill, but a _bit_ higher, not 75% higher.

I'm not sure why you feel the need to act as an apologist for this company, nor why you can't understand the concept of "low fixed income with no overdraft facility and a family to feed at Christmas".

And your point about the bailout cost being reflected in all our future bills, while probably true, is just mean and unhelpful and increases my suspicion that you are not as independent from the energy sector or this company as you proclaim. Something about "protesting too much" I think.

MoneySavingAtWork

ben501 wrote: »

I am only guessing here, but could it be that those who are having their overall direct debit charge increased have been on a variable rate tariff for a few months, and following (at least 2?) price rises their monthly payment needs increasing to reflect the increased rates?

On the 13th of November they said their prices are going up which for me being a very low user increases from £537 to £572, that's a £35 increase over the year

On the 15th they then say they are putting the direct debit payment up to £80 Winter and £34 summer which is £694.

So they are asking me to pay £122 more than the newly increased prices despite having two months worth of credit in my account :T

There are two issues here:
1. They are asking for much higher direct debit payments taking actual usage and more recent price increase into account
2. They are suddenly hitting people with a new pricing structure which requires 70% payment to be made in the winter months.

The first issue there is no excuse for, since they have clearly been able to work out the correct numbers on the email from the 13th so its not like the data is missing. It looks like they are just trying to pull a fast one by changing the structure and hoping people dont compare that to their previous price increase email.

Still awaiting an explanation of why they require an extra 20+% payment over the course of the year

paters

I switched to their variable Zapp tariff at the end of September.

For their new DD calculation OTM increased my EAC by 10% in addition to the 2 recent price hikes. There is no explanation for the extra 10% as I haven't even received my first bill yet. Nor is there any real justification for their arbitrary 70/30 split as I don't use 133% more energy during the colder months of the year.

Even though OTM are still the cheapest for me, I've now switched supplier because I get the feeling their prices are only going to go up and up. Fortunately for me I found a fixed rate deal that with cashback won't cost me more money in the long run.

However, I'm sure it won't be this easy for most of their customers. What I think is unreasonable is the timing of all this, just before Christmas when people are already worried about increased energy costs. If they gave a few months notice, fair enough, but 10 days...

System

shaftthemarket wrote: »

I am sorry Hengus but for many of us this is simply not true, at least in the short term. As I noted above, in many cases Winter monthly DD x 6 plus Summer monthly DD x 6 is >> previous monthly DD x12. Even factoring in the recently announced unit price increase, the hike in my case is over £200pa. That means I am being asked to pay £200+ more per annum for the energy I use based on the tariff I singed up to. Yes I might get some of it back next summer if they reduce the DD enough, but then so too might pigs fly, or foxes go pop.

The maths is only part of it. The other things is the attempt at blatant daylight robbery. OTC say they are transparent. So too was !!!! Turpin when he said 'your money, or your life!'.

I can only wish you well finding a new supplier.

[Deleted User]

Foxglove is the network operator and is a holding company based in Malta. OTFM and Fischer are wholly owned subsidiaries. You can find out more about them and their accounts if you go to Companies house and do a search.

ATB
Dougie.

BedrockFred

Hengus wrote: »

I can only wish you well finding a new supplier.

There's plenty out there that will take DD's evenly over the year and there are plenty that are on a par with what OFTM charge

My migration away from OFTM on a 2 year fixed will over the 2 years not cost me anymore and will proberly save me some

Scatty

alittleowl wrote: »

I'm not sure why you feel the need to act as an apologist for this company, nor why you can't understand the concept of "low fixed income with no overdraft facility and a family to feed at Christmas".

I've noticed this a LOT since the OTM DD fiasco started.

[Deleted User]

see url: https://www.directdebit.co.uk/DirectDebitExplained/Pages/Cancellingpayments.aspx
This shows the rules for cancelling a direct debit, and also gives a template on how to do so.
ATB
Dougie.

kendizle

What is happening!! I know my energy usage down to the KW as I take readings every month and my habits rarely change. My DD is about to be doubled and I am already in credit despite giving readings each month.

My main issue is that with this doubling of my DD I will now be paying £20 more per month than the company I switched from.

Is there anyway to refuse the increased DD and continue with my existing? Or is my only option to cancel and move to another supplier? I dont want to accumulate credit, Im still trying to get back my credit from the supplier I switched from in April (greenstar).

Hook us in with a cheap price and then double it. This is wrong!!!!

[Deleted User]

Yes, you can get in touch with the company and ask for a breakdown of your usage, and get a calculation of your debit/credit amount, or do it for yourself and ask for a refund or for them to lower it. If you don't get any satisfaction, you can switch and cancel your DD, though there may be exit fees, you will have to check what contract you are on.
For advice on how to cancel a direct debit instruction see url: https://www.directdebit.co.uk/DirectDebitExplained/Pages/Cancellingpayments.aspx
I hope this helps.
ATB
Dougie.