Octopus to cut SC completely for a short time for some customers.

Chrysalis

Link here

https://www.express.co.uk/finance/personalfinance/1670751/octopus-energy-cuts-standing-charge-ofgem-price-cap
and

https://twitter.com/g__j/status/1571181701639950336

However no details on who the 100k will be, what metrics will be used.

fryedslyce

If 3 months is the median waive period that will cost them just under 7 million, but I'm guessing the vast majority will only get a 1 month waiver and the likely cost to Octopus will be 3 - 4 million.

bristolleedsfan

All large energy companies are required to give credit grants to customers who are struggling -  Criteria tends to be customers with low income who are in debt .......

Customers who get SC freebie would have got assist payment credits anyway

https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-help-paying-your-bills/grants-and-benefits-to-help-you-pay-your-energy-bills/

https://octopus.energy/blog/struggling-to-pay/

https://www.thesun.co.uk/money/18133572/energy-grants-free-cash-british-gas-scottish-power/

Chrysalis

bristolleedsfan said:

All large energy companies are required to give credit grants to customers who are struggling -  Criteria tends to be customers with low income who are in debt .......

Customers who get SC freebie would have got assist payment credits anyway

https://www.citizensadvice.org.uk/consumer/energy/energy-supply/get-help-paying-your-bills/grants-and-benefits-to-help-you-pay-your-energy-bills/

https://octopus.energy/blog/struggling-to-pay/

https://www.thesun.co.uk/money/18133572/energy-grants-free-cash-british-gas-scottish-power/

So you think they will identify customers via ones who got previous assistance?

Bear in mind they wont know what their customer's income level is unless the customer tells them or the DWP give them the information.

Given how unfair I think the new WHD is, I would hope there is a means to apply for this, so those who are deemed as low income but also low energy costs and as such not getting the WHD would have a chance of getting this.

bristolleedsfan

I have not seen any comments on this forum re experiences having applied for assistance.

Have read experiences on Twitter which indicated customers had to be in debt in common with other supplier schemes, read a few who missed out on WHD for some reason who got a credit through Octo Assist as Octopus could see customer met criteria for WHD ( last years WHD)

https://octopus.energy/policies/extra-support/  Fund has been increased now £15 million as more customers will be expected to get into financial difficulties being as this coming winters energy costs record high, a lot higher than last winter.

Who will get assistance/SC holiday - 100000 sounds a lot, Octopus have millions of customers and growing, they have previously said more customers owe them money than are in credit.

100000 same figure as they stated they had helped as of July 2022, likely to be additional 100000. - Many who got assistance last winter will probably seek assistance this coming winter.

Financial form has to be completed - 

"up to 100,000 customers in greatest need will be able to apply for "standing charge holidays" of up to 6 months"

SC holiday makes a good headline and gets them additional free advertising, just alternative  method to giving £20, £60 £120 credit etc that they and other large suppliers have been doing/are required to do.

https://twitter.com/g__j/status/1571196207405359104

- Common unhappiness, perception that those who make other sacrifices and keep energy account in good status are at a disadvantage to those who maybe give energy account lower priority.

"Are you going to support those with recognised disabilities, or those who chose to buy cigarettes instead of paying their energy bills?"

Spoonie_Turtle

bristolleedsfan said:

"Are you going to support those with recognised disabilities, or those who chose to buy cigarettes instead of paying their energy bills?"

These types of comments show the 'deserving vs undeserving poor' mentality is rife still (I thought society was supposed to progress?!).  I hate it.  Just because someone doesn't necessarily have a medical diagnosis doesn't mean they can't also need help.

[Edit: just to clarify, I know you're quoting someone else who made that comment on Twitter.  They had a real bee in their bonnet about it!]

Chrysalis

I think its really important this has an application process rather than just identifying people.

The obvious problem been if they look at "oh this person is getting WHD this year", "oh we helped them before on our assist fund" it becomes a lock in process.

The subject of unpaid bills is controversial because you might have two individuals with similar circumstances, one pays their bill whilst perhaps sacrificing food, heating etc. whilst the others doesnt and defaults on their bill.  Neither are necessarily wrong if they simply cannot afford it, but the one who defaulted will be seen as the more vulnerable.

I also actually have a friend who applied for the assistance fund at Octopus after been advised to by an operator hence my special interest in this, she heard nothing for 4 months, I suggested she queried it and then she got told along the lines of "oh the fund must have ran out", yes thats how bad Octopus customer service is currently, the staff member decided to speculate instead of looking into it.  I suggested she bounce it back to them but she didnt want to cause trouble so left it.

But anyway I had another look at the article and it does actually say people will be able to apply, I missed it the first time, so seems it will be an open process.  I will pass this on to my friend.  I imagine Octopus will get swamped and those 100k slots may get filled quite quickly.

MattMattMattUK

Spoonie_Turtle said:

bristolleedsfan said:

"Are you going to support those with recognised disabilities, or those who chose to buy cigarettes instead of paying their energy bills?"

These types of comments show the 'deserving vs undeserving poor' mentality is rife still (I thought society was supposed to progress?!).  I hate it.  Just because someone doesn't necessarily have a medical diagnosis doesn't mean they can't also need help.

[Edit: just to clarify, I know you're quoting someone else who made that comment on Twitter.  They had a real bee in their bonnet about it!]

The deserving/undeserving poor narrative continues to exist because it aligns with most people's real world experience.

I met disabled people through helping out in a food bank who got an awful deal from the benefits system, in some cases without the support of food banks, charity groups etc. it was impossible for them to survive, their benefits did/do not cover their costs no matter what they do. 

The other side of the coin is that pretty much everyone knows someone who games the benefits system. The behaviour of those people unfortunately somewhat discredits the system itself, costs taxpayers more, but most importantly takes money away from those in genuine need.

To me there is no doubt that benefits for those most in need should rise, for many, especially the disabled, benefits are not possible to survive on alone. The system should also be accessible to those who need it, it is far too complicated, especially for those who perhaps lack the full capabilities and digital skills they are presumed to have. It should also be fair, in as far as fair can exist outside of an abstract concept, the sanctions system needs to be abolished or hugely reformed, PIP assessments need a total redesign, but tied in with that needs to be a way to weed out those who game the system, those who abuse the system and those who choose it as a lifestyle choice. I have no objection to the taxes I pay going to help those who need help, supporting those in genuine need is an important part of our society.

wrf12345

Sorry, but getting rid of s/c's for a few whilst admitting that s/c's are unfair in general? There is nothing to stop Octopus offering a fixed tariff with no s/c and higher unit rate rather than taking money from the great mass of customers to subsidise a few.

MattMattMattUK

wrf12345 said:

Sorry, but getting rid of s/c's for a few whilst admitting that s/c's are unfair in general? There is nothing to stop Octopus offering a fixed tariff with no s/c and higher unit rate rather than taking money from the great mass of customers to subsidise a few.

Other than it being economic suicide as low users, people with large solar and battery systems, second home owners etc. would flock to that tariff and Octopus would not recover the costs they need to pay for the network.

If the Standing Charge was abolished low users would be subsidised by average and high users with the system as it is those low users are still subsidised, but to a far lesser extent than they would be without the Standing Charge.

[Deleted User]

wrf12345 said:

There is nothing to stop Octopus offering a fixed tariff with no s/c and higher unit rate

On a fix, yes, but people would see higher unit rate and panic.  

And of course there would be the complaints about why is this over the cap on unit rates, and should it get an EPG discount.