Octopus Energy tried to treble my monthly payments

[Deleted User]

nick789uk said:

Hi just had an email from Octopus energy saying that they will put my monthly payment up to £395.85 pm from £150 pm. I am over £200 in credit and at the moment,  my monthly bills for electricity and gas is around £80. I contacted them and asked them why they were doing this they said it was estimated that is the amount I would use, I informed them that they do not need to estimate the amount I use as I am on a smart meter for both electricity and gas and should know how much I am using as I know, they then agreed to put it back to the £150 pm. Is this just pure grabbing money off the customer as if I hade not notice then I would have been paying the new amount. 

My current fixed deal with Eon Next runs out on 1st October 2022.  I've workd out the numbers for October onwards, using the commonly floated assumptions about the level of the October cap onwards and I've also assumed the same consumption figures for 2023 and for 2022.  I anticipate that the bill I receive for the usage in January 2023 will be circa £285 (v the actual bill I got in 2022 which was £111).  The government grant will reduce the 2023 amount I expect to pay to approx £218.  If I were on fixed DD (ATM I am on variable DD so pay each bill in its entirety when it is raised) I'd be expecting to at least double the current fixed DD (possibly more depending on any account balance).  Of course you could ask Octopus to put you on variable DD and then you would know for sure that they are not indulging in excessive 'money grabbing'.  But then you will be hit with really hefty bills in winter and have to budget accordingly. 

[Deleted User]

Mstty said:

wrf12345 said:

I doubt however any of the software can get to grips with the £400 from October with the process still not agreed.(that's another matter entirely but it sprang to mind)

Bearing in mind that the Government has already changed tack from a £200 loan to a £400 grant, no sensible supplier will do anything re DD payments until it sees the colour of the Government’s money. Given that our PM is now ‘contrite; humble and listening’ we may yet see the Government doing away with ‘green taxes’ to reduce energy prices which would reduce the cost to the customers in lieu of the £400 grant.

bristolleedsfan

Payment change suggestions Octopus automatically make do not take account future tariff price increases or expected £400 credit, in common seemingly with all other suppliers credit balances are not taken into account, debit balances however are factored into calculations.

Mstty

Yep the £400 won't be recognised by most energy systems for 6-12 months for people.thinking it will take £66.66 off their direct debit each month from October. That will be at the grace of the energy company you are with and if you can change your DD that much at will.

SJMALBA

Mstty said:

Xbigman said:

Mstty said:

wrf12345 said:

Octopus's boss was recently on the radio saying he had cutting edge software yet he is doing the same trick as the others. tripling the usage for estimates. Ofgem are well aware of this but do nothing about it except telling everyone to behave. Useless.

I have found a fair few of the big contributors here are massive Octopus fans as what they need Octopus supplies. So bear that in mind with replies. Same for the OP.

I doubt however any of the software can get to grips with the £400 from October with the process still not agreed.(that's another matter entirely but it sprang to mind)

In this instance the OP has not clarified the rates they are coming from and to and their kWh usage.

Until then no one can judge who is right or wrong👍

And you pop up on every thread that mentions Octopus criticising them. Everyone should bear that in mind. 



Darren

It's called balance 👍

Actually I have been promoting the following recently by Octopus on many posts and I believe the following should now be added at the top of Martin Lewis table for best deals

1) the Agile tariff is now the best out there for fixing electricity only at 35p for 12 months but act quick
2) actively promoting Octopus customers to consider the Tracker tariff for gas due to the 40p cap rate fixed for 12 months (we all hope) with agile for electricity.

Balance is key not bias and if you view my replies you will see both positive and negatives for Octopus.

40p for gas? 😲

I knew things were bad, but...

😉

Mstty

SJMALBA said:

Mstty said:

Xbigman said:

Mstty said:

wrf12345 said:

Octopus's boss was recently on the radio saying he had cutting edge software yet he is doing the same trick as the others. tripling the usage for estimates. Ofgem are well aware of this but do nothing about it except telling everyone to behave. Useless.

I have found a fair few of the big contributors here are massive Octopus fans as what they need Octopus supplies. So bear that in mind with replies. Same for the OP.

I doubt however any of the software can get to grips with the £400 from October with the process still not agreed.(that's another matter entirely but it sprang to mind)

In this instance the OP has not clarified the rates they are coming from and to and their kWh usage.

Until then no one can judge who is right or wrong👍

And you pop up on every thread that mentions Octopus criticising them. Everyone should bear that in mind. 



Darren

It's called balance 👍

Actually I have been promoting the following recently by Octopus on many posts and I believe the following should now be added at the top of Martin Lewis table for best deals

1) the Agile tariff is now the best out there for fixing electricity only at 35p for 12 months but act quick
2) actively promoting Octopus customers to consider the Tracker tariff for gas due to the 40p cap rate fixed for 12 months (we all hope) with agile for electricity.

Balance is key not bias and if you view my replies you will see both positive and negatives for Octopus.

40p for gas? 😲

I knew things were bad, but...

😉

I'll fix it lol thanks fella

Chrysalis

nick789uk said:

Hi just had an email from Octopus energy saying that they will put my monthly payment up to £395.85 pm from £150 pm. I am over £200 in credit and at the moment,  my monthly bills for electricity and gas is around £80. I contacted them and asked them why they were doing this they said it was estimated that is the amount I would use, I informed them that they do not need to estimate the amount I use as I am on a smart meter for both electricity and gas and should know how much I am using as I know, they then agreed to put it back to the £150 pm. Is this just pure grabbing money off the customer as if I hade not notice then I would have been paying the new amount. 

You nailed it, they have the account history, they have the actual readings.  They also didnt argue with me when I pointed out my smart meter readings were barely over £50 and they tried to give me a £400+ DD.

This software assumes very high winter usage when that doesnt apply to every customer, and seems flawed in what it uses as historical data for its estimates. 

You can effectively stop this nonsense if you prepared to switch to a variable direct debit payment system which means you pay monthly in arrears of your account balance (which for you will always be actual usage as you have a smart meter), just be aware though if you do have very high winter usage, then this will also mean high winter payments, but of course also alongside lower payments for rest of the year.

Chrysalis

Mstty said:

It's called balance 👍

Actually I have been promoting the following recently by Octopus on many posts and I believe the following should now be added at the top of Martin Lewis table for best deals

1) the Agile tariff is now the best out there for fixing electricity only at 35p for 12 months but act quick
2) actively promoting Octopus customers to consider the Tracker tariff for gas due to the 11p cap rate fixed for 12 months (we all hope) with agile for electricity.

Balance is key not bias and if you view my replies you will see both positive and negatives for Octopus.

Is the 35P cap really assured for 12 months?  If so this tariff seems godly right now when you also consider prices can dip off peak, which I know isnt assured but has been happening in recent months, and thats its way cheaper than the fixed deals Octopus are offering

Alnat1

It appears so and Octopus have historically honoured account tariffs BUT there is no guarantee they would in future and they could announce at some point that the tariff is closing and you have to move to another one.

Chrysalis

How does the DD work, is it forced to variable or keeps the fixed system?