Octopus Energy takes on Avro customers

Consumerist

I think we need to be careful about advertising hype.

I would think switching turnover is quite high. To say they are 'piking up' 50,000 customers per month doesn't necessarily mean their customer base is growing at that rate.

xlnc99

when is everyone submitting their readings to OCT?

i have one history reading and that is 5th November. I did one in Oct/Sep but its not showing on their site. When are we meant to submit readings for them - does anyone know?

meinnit

Consumerist said:

I think it's probably fair to say that Octopus has made a long-term investment. Long-term investments often involve a short-term loss (e.g. those who have opted to pay more now for the Helpful tariff - now withdrawn - in the hope of savings to be gained from April).

We have little idea of what 'deal' has been cooked up between Octopus and Ofgem but it's a fair bet that Octopus will lose little, if anything, and they go forward with a customer base which has grown by 580,000; it would probably have taken many years to achieve such growth organically.

Agree with this.. short term hit for long term gain. It's why only the bigger energy firms can afford to SoLR by taking on customers at a loss now and claiming from Ofgem later.

I would be interested to know if energy firms are required to ring fence customer deposits otherwise how else can Ofgem promise that all credit is safe?

QrizB

polymaff said:

I agree that there'll have to be a subsidy.  I don't expect us to find out anything about it.

Details of every pound that Octopus claim from Ofgem will be published on Ofgem's site, just as has happened with previous SoLRs. See for example:
https://www.ofgem.gov.uk/publications/last-resort-supplier-payment-claim-octopus-energy-final-decision

Consumerist

xlnc99 said:

when is everyone submitting their readings to OCT?
i have one history reading and that is 5th November. I did one in Oct/Sep but its not showing on their site. When are we meant to submit readings for them - does anyone know?

I think, for now, it's up to you.

When the accounts are running normally, you should get  statement when you submit new readings but that isn't happening for Avro's former customers until Avro sends out final bills.

FWIW I won't be submitting new readings until my credit balance from Avro is showing on my Octopus account and then I can see exactly where I stand. But, as I said, it's up to you to do what you feel happiest with.

oliverbrown

QrizB said:

https://www.ofgem.gov.uk/publications/last-resort-supplier-payment-claim-octopus-energy-final-decision

So, £13.02m LRSP for Iresa's 100,000 customers. I think it's a fair bet that with 580,000 Avro customers and wholesale market conditions as they are, that £13m will be thoroughly dwarfed. 

gt94sss2

meinnit said:

I would be interested to know if energy firms are required to ring fence customer deposits otherwise how else can Ofgem promise that all credit is safe?

No, they are not required to ring fence deposits.

The money paid to the SoLR supplier by Ofgem to make up any missing credit is added to the customer levy on all customers bills (basically the loss is shared among all customers)

wiseonesomeofthetime

wakeupalarm said:

So could you set your monthly DD to £1, and then just top up the balance as and when required?

If you try and reduce your DD to less than it was with AVRO, the system will stop you and say that your preferred amount needs to be reviewed. 

At least that it what happened when I tried to reduce mine from £52 to £50 (for nice round numbers).

I just left it at £52.

Cba

Consumerist

That will be the mechanism they will use to make sure you accumulate huge credit balances from April, just like the rest of them.

bristolleedsfan

Consumerist said:

That will be the mechanism they will use to make sure you accumulate huge credit balances from April, just like the rest of them.

They will set up a variable rate direct debit if asked to do so, take full payment I think it about 10 days after bill/statement is produced, ( not unique to Octopus i have asked Eon Next SOLR to Igloo to do the same thing, Shell Energy and others offer same option)