Octopus hikes estimated annual usage way above actual usage

rhedyn

So I have discovered that Octopus does not charge a different rate depending on whether a customer has direct debit set up, which is commendable.  So I have followed up my email to them to simply ask them to cancel my direct debit, thus avoiding any further issues over arbitrarily inflated usage estimates.  I am perfectly able to simply pay my bill promptly each month and I do not agree that it is reasonable for them to require me to have paid for every bill in advance.

L9XSS

I’m with Octopus, was with Avro, who went bust and was transferred across. My DD from April this year has trebled (200% increase). Suffice to say that last month and for the next 12 months I’m being extremely careful with the electricity and gas I’m using.........My DD moved from £52 a month (I’m careful) to £152 a month.

rhedyn

L9XSS said:

I’m with Octopus, was with Avro, who went bust and was transferred across. My DD from April this year has trebled (200% increase). Suffice to say that last month and for the next 12 months I’m being extremely careful with the electricity and gas I’m using.........My DD moved from £52 a month (I’m careful) to £152 a month.

If you have an end of year statement that tells you the total kWh you used last year it might be a good idea to compare it to Octopus' estimated predicted use for you and see if it looks reasonable.  I'm only on electric as my heat and hot water comes from a log boiler, so I don't know what the situation is for gas.

k_man

Ex Avro too, but in Octopus' defence of the increase, I was paying (on Avro):

13.4p/kWh for elec

2.36p/kWh for gas

So no surprise that there is a big rise.

[Deleted User]

rhedyn said:

So I have discovered that Octopus does not charge a different rate depending on whether a customer has direct debit set up, which is commendable.  So I have followed up my email to them to simply ask them to cancel my direct debit, thus avoiding any further issues over arbitrarily inflated usage estimates.  I am perfectly able to simply pay my bill promptly each month and I do not agree that it is reasonable for them to require me to have paid for every bill in advance.

You may be worrying unnecessarily. I have been an Octopus customer for over 4 years and all the annual estimates have been in accord with my own calculations. Bear in mind that when a supply is switched, the gaining supplier is provided with historical usage data from the old supplier. If the previous supplier hasn’t been receiving monthly meter readings and billing to them then things can go awry. 

bristolleedsfan

Dolor said:

rhedyn said:

So I have discovered that Octopus does not charge a different rate depending on whether a customer has direct debit set up, which is commendable.  So I have followed up my email to them to simply ask them to cancel my direct debit, thus avoiding any further issues over arbitrarily inflated usage estimates.  I am perfectly able to simply pay my bill promptly each month and I do not agree that it is reasonable for them to require me to have paid for every bill in advance.

You may be worrying unnecessarily. I have been an Octopus customer for over 4 years and all the annual estimates have been in accord with my own calculations.

That is probably due to you having a smart meter.

Having given Octopus weekly readings for years, half way through last year I queried why estimated annual usage was effectively 3 times my constantly same usage- no difference winter than summer, this is what they said -

Unfortunately, as we do not actually calculate the projected consumption on our end, we cannot explain how it has changed to 2790kWh but it will be based on your readings. As they validate all of your meter readings the Data Collectors are fully aware of your actual usage.

When you submit a reading to your supplier this is then sent of to the industry Data Collector in our case this is TMA to be validated, once validated they send an electronic flow through to us and this automatically updates your EAC each time and predicts your annual consumption if we don't have a years worth of readings which we place on your monthly statements.

[Deleted User]

bristolleedsfan said:

That is probably due to you having a smart meter.

If only that was true. When EDF became Zog's SoLR, my annual gas consumption rose from 7771kWh/year to 11294kWh/year in the space of a month even though I provided EDF with a very accurate estimate of annual usage. I switched to Octopus in late January and my latest gas bill shows an estimated usage figure of 7813kWh/year. For the few months that I was Zog, their estimates were also spot on: particularly, as we do not use any gas during the summer months.

rhedyn

bristolleedsfan said:

That is probably due to you having a smart meter.

Having given Octopus weekly readings for years, half way through last year I queried why estimated annual usage was effectively 3 times my constantly same usage- no difference winter than summer, this is what they said -

Unfortunately, as we do not actually calculate the projected consumption on our end, we cannot explain how it has changed to 2790kWh but it will be based on your readings. As they validate all of your meter readings the Data Collectors are fully aware of your actual usage.

When you submit a reading to your supplier this is then sent of to the industry Data Collector in our case this is TMA to be validated, once validated they send an electronic flow through to us and this automatically updates your EAC each time and predicts your annual consumption if we don't have a years worth of readings which we place on your monthly statements.

That is interesting.  In my case I have given them my meter reading every month without fail since January 2016, but their estimate (which from what you say is actually given to them by TMA) has been put way up above what I actually use.  I am in a very rural location without enough mobile signal for a smart meter even if I wanted one, and I can't remember the last time anyone came to actually check my meter, so I'm suspecting perhaps the algorithm they use distrusts customer submitted readings and pads the prediction if that's all they have.

Haven't heard back from Octopus yet, figuring I'll give it until Tuesday and then escalate.  In any case, I don't see any benefit to me from being on direct deposit since they don't give a discount for it.

[Deleted User]

I hope it is O.K. to ask here as this post has got me wondering about my meter.  It is M3 on my Gas Meter so ? definitely Metric and not Imperial.  I have copied this from my bill - it is for 10 units:

"Your energy usage is calculated from your gas
consumption using a standard industry formula:
Units Consumed (Cubic Metres)
× Volume Correction (for temperature & pressure)
× Calorific Value (energy in each m3 of gas)
÷ 3.6 (convert from joules)
≈ Usage (in kWh)
For you:
10.0 × 1.02264 × 39.9† ÷ 3.6 = 113.3 ." (kWhrs)

So my Gas Bill for February/March 2022 says 10.0 Units M3/Gas Energy used 113.3 kWh.  I think everything is in order but will really appreciate your confirmation, please.  It's the "Units Consumed (Cubic Metres)" part that makes me feel a bit unsure but would it have to say, for example, cubic feet, for it to be wrong?  I think everything is in order but will really appreciate your confirmation.  I don't have a smart meter.

Thank you

Crimson

Gerry1

Deleted_User said:

So my Gas Bill for February/March 2022 says 10.0 Units M3/Gas Energy used 113.3 kWh.

That's fine.  You'd only have to worry if the formula included a multiplier of 2.83 in it.  The volume is always converted to cubic metres before being turned into kWh.

It's easy to work it out from first principles:-

1 cubic yard (3 x 3 x 3 feet) is 27 cubic feet.

A metre is a bit bigger than a yard, so 1 cubic metre = 35.31 cubic feet.

Scaling up, 2.83 cubic metres = 100 cubic feet.

However, a reading of 1 on an imperial meter actually represents 100 cubic feet (shorthand to keep the numbers manageable) so 1 imperial unit = 100 cubic feet = 2.83 cubic metres.

 QED