How much to live on

cbsexec

I pay by direct debit too but variable.  No extra charge 

BooJewels

Organgrinder said:

QrizB said:

Organgrinder said:

It's on their website. 

I think you've mis-read or misunderstood something.

Can you provide a link to this info?

https://octopus.energy/blog/bill-support/#whatyoucando

I'm pretty sure that paying by variable direct debit - i.e. you pay for what you actually use each month by DD (I think you send a meter reading, they send a bill and take the payment 14 days later), instead of paying the same 1/12 of your annual charges each month - is still at the same unit price and therefore doesn't cost any more.  But you will obviously pay more in winter months than summer ones.  But it does avoid you building up debt or credit.

I think the quoted 'potential saving of £80 per household' quoted is for paying by cheque or over the counter in cash at the bank etc., which are more expensive to administer.

Organgrinder

it's not an extra charge...they're saying you get lower unit rates.

BooJewels

You get lower unit rates for paying by Direct Debit - they charge higher unit rates by other payment methods, such as cheque etc.

As I understand it, you pay the same lower unit rates for both regular monthly DD (1/12 of your annual bill) or variable DD (actually billed for the units used each month, so more in winter, less in summer) - the latter of which would avoid building up credit, which is what you were objecting to.  So you can switch to variable DD and retain the same advantageous unit prices.

jackieblack

It certainly reads to me like fixed direct debit is cheaper than variable 🤷🏻‍♀️

Organgrinder

jackieblack said:

It certainly reads to me like fixed direct debit is cheaper than variable 🤷🏻‍♀️

That's exactly how I read it.

Albermarle

BooJewels said:

You get lower unit rates for paying by Direct Debit - they charge higher unit rates by other payment methods, such as cheque etc.

As I understand it, you pay the same lower unit rates for both regular monthly DD (1/12 of your annual bill) or variable DD (actually billed for the units used each month, so more in winter, less in summer) - the latter of which would avoid building up credit, which is what you were objecting to.  So you can switch to variable DD and retain the same advantageous unit prices.

That is not what the link says, although I think to be sure someone will have to check with Octopus. 

I pay the same each month ( although I adjust it every now and again). My average credit with them is probably around £300 , so I am losing £1 a month in potential interest. However apparently/maybe gaining £80 a year( which I was not aware of before this thread)

For info I am paying
for Electric - 48 p a day standing charge and 28.79 p per unit
for Gas - 27.5p a day standing charge and 7.52p a unit.

Albermarle

Albermarle said:

BooJewels said:

You get lower unit rates for paying by Direct Debit - they charge higher unit rates by other payment methods, such as cheque etc.

As I understand it, you pay the same lower unit rates for both regular monthly DD (1/12 of your annual bill) or variable DD (actually billed for the units used each month, so more in winter, less in summer) - the latter of which would avoid building up credit, which is what you were objecting to.  So you can switch to variable DD and retain the same advantageous unit prices.

That is not what the link says, although I think to be sure someone will have to check with Octopus. 

I pay the same each month ( although I adjust it every now and again). My average credit with them is probably around £300 , so I am losing £1 a month in potential interest. However apparently/maybe gaining £80 a year( which I was not aware of before this thread)

For info I am paying
for Electric - 48 p a day standing charge and 28.79 p per unit
for Gas - 27.5p a day standing charge and 7.52p a unit.

Just checked the Octopus website and app out of interest.
No mention of variable direct debit at all, so no way to confirm or deny the £80 surcharge
Now I notice the link supplied was a blog about cost of living issues, so it is a little bit hidden away .

I also have seen that Octopus claim that by the end of March , the average DD customer actually owes them over £200, so if this was true it reduces the benefits further of variable direct debit.

trevjl

I also have seen that Octopus claim that by the end of March , the average DD customer actually owes them over £200, so if this was true it reduces the benefits further of variable direct debit.

They always seem very keen on Mr Average Household, I must be very not average as I have not ever owed them a penny even though I would say I am pretty average living in a 3 bed semi

Pat38493

Albermarle said:

Albermarle said:

BooJewels said:

You get lower unit rates for paying by Direct Debit - they charge higher unit rates by other payment methods, such as cheque etc.

As I understand it, you pay the same lower unit rates for both regular monthly DD (1/12 of your annual bill) or variable DD (actually billed for the units used each month, so more in winter, less in summer) - the latter of which would avoid building up credit, which is what you were objecting to.  So you can switch to variable DD and retain the same advantageous unit prices.

That is not what the link says, although I think to be sure someone will have to check with Octopus. 

I pay the same each month ( although I adjust it every now and again). My average credit with them is probably around £300 , so I am losing £1 a month in potential interest. However apparently/maybe gaining £80 a year( which I was not aware of before this thread)

For info I am paying
for Electric - 48 p a day standing charge and 28.79 p per unit
for Gas - 27.5p a day standing charge and 7.52p a unit.

Just checked the Octopus website and app out of interest.
No mention of variable direct debit at all, so no way to confirm or deny the £80 surcharge
Now I notice the link supplied was a blog about cost of living issues, so it is a little bit hidden away .

I also have seen that Octopus claim that by the end of March , the average DD customer actually owes them over £200, so if this was true it reduces the benefits further of variable direct debit.

I would be interested in any confirmation or not of this £80 charge.

I suspect it's a confusion and the £80 is for non DD methods of payment.

I've been told in the past:
- You have to contact Octopus directly to go on variable DD.
- I am pretty sure when I asked them about it around 6 months ago, they told me there was no extra charge for this payment method but it was a good while back.

After today's DD I will be 3 months in credit in mid February so I am obviously paying way too much right now - I am not sure if Octopus will fix this automatically after I have a year of history or if I need to contact them.