Pay more by ditching Direct Debit?

JohnB47

A few months ago I decided to ask Octopus to let me pay my bills in full, still by direct debit, rather than let me build up a debit or credit balance. This was accepted.

Now I read this from Martin:

"The fact payment in receipt of bills is higher is why those thinking of "ditching direct debit to just pay what I owe" should be careful. It may benefit you in immediate cash-flow terms, but weight that against the fact in the long-run the rates are higher so you will pay more in total."

So, am I still ok paying my bills in full, as long as I continue to do so by direct debit?

400ixl

If you have switched to a variable direct debit then usually you retain the discount.

Some, but not all charge more if you move away from direct debit to standing order or other payment method.

Check your bills to make sure you are only paying the rate you should be and there are no surcharges.

Astria

"payment on receipt of bill" is typically that they actually send you a physical bill in the post that you can pay at the post office or wherever. I wouldn't expect the post office to do it for free (I'd expect a percentage), so this needs to be factored into the price you pay.

Sending you a bill via email and letting you pay with card will also cause additional costs in processing the transaction, so it's fair to say that your bill will be more expensive.

But if they simply take the amount owing via direct debit (even if they send you an e-bill) then it shouldn't cost any more than a "budget direct debit" which can get you into credit or debit.

[Deleted User]

Hi,

You should be OK, though do Octopus actually give a DD discount?

From Octopus FAQs,

Why don't you offer online, dual fuel, or Direct Debit discounts?

Because we believe in simplicity and fairness.

We keep things simple by doing everything online, which allows us to pass on savings to you that are built into all if our tariffs. Though we recommend paying by monthly Direct Debit, you'll never be penalised with different rates if you choose another payment method.

We keep things fair by giving our best prices to everyone, not just dual fuel customers. We don’t think it’s right to penalise single fuel households, or to force customers to take both gas and electricity from us for access to different pricing.

kten

It seems it'd be a bit clearer if Martin says that "The fact payment in receipt of bills but not by direct debit is higher", instead of just "The fact payment in receipt of bills is higher".
I always request the energy company to do the billing in a "credit card statement" style, ie, send me a bill based on what exactly I spend (use the energy according to the actual readings), then take the money whenever you like even the next day the bill is generated, and I tell them I don't like the idea that I own you money or I'm in debt, nor do I like the idea that you own me money by overcharging me. And they always do it the way I want.

mfijohn

Sorry if this is in wrong place, I had my energy bill fixed before the crisis, and the fix will end in Feb 22. I have read Martin's review of the new cap, and not being the brightest  star in the sky,  I think it means I will NOT receive the £400 rebate this year or the extra £300 one off fuel allowance for pensioners, I suppose it makes sense really, but I just wanted ask... am I correct in thinking that  this is the case

[Deleted User]

mfijohn said:

Sorry if this is in wrong place, I had my energy bill fixed before the crisis, and the fix will end in Feb 22. I have read Martin's review of the new cap, and not being the brightest  star in the sky,  I think it means I will NOT receive the £400 rebate this year or the extra £300 one off fuel allowance for pensioners, I suppose it makes sense really, but I just wanted ask... am I correct in thinking that  this is the case

No, you are mistaken.  No previously announced scheme is being changed by the new cap, apart from the OFGEM cap that it is replacing.

pochase

JohnB47 said:

A few months ago I decided to ask Octopus to let me pay my bills in full, still by direct debit, rather than let me build up a debit or credit balance. This was accepted.

Now I read this from Martin:

"The fact payment in receipt of bills is higher is why those thinking of "ditching direct debit to just pay what I owe" should be careful. It may benefit you in immediate cash-flow terms, but weight that against the fact in the long-run the rates are higher so you will pay more in total."

So, am I still ok paying my bills in full, as long as I continue to do so by direct debit?

Octopus is using the same unit rates for all payment forms (except prepaid). So no problem here.