DD rules on deemed tariffs

fivegoldstars

I was moved to Octopus from Avro as a supplier of last resort and as its classed as a deemed tariff, I paid DD rates despite having no DD in place. I remember at the time seeing that this was part of Ofgems rules, and it was something ML publicised quite heavily back in the day. 
I've continued to get DD rates through the last couple of rises, as my tariff is still Avro variable, but my letter this time round quotes non DD unit rates and says I'd save with a DD. Are Octopus pulling a fast one?

Coffeekup

No they are not... It's usually 7% cheaper (IIRC) to pay DD then by cheques or standing order.

fivegoldstars

Coffeekup said:

No they are not... It's usually 7% cheaper (IIRC) to pay DD then by cheques or standing order.

Sorry, I'm not sure you've followed the question. Yes, there are three different cap rates, and yes, DD is the cheapest rate. The question is though, should I be paying the lower DD rate, irrespective of my payment method, due to Ofgems rules on moves to supplier of last resort? 

QrizB

fivegoldstars said:

I was moved to Octopus from Avro as a supplier of last resort and as its classed as a deemed tariff, I paid DD rates despite having no DD in place.

Unlike some suppliers, Octopus has one set of tariffs. They do not charge extra for cash/cheque/CC payments.

fivegoldstars

QrizB said:

fThativegoldstars said:

I was moved to Octopus from Avro as a supplier of last resort and as its classed as a deemed tariff, I paid DD rates despite having no DD in place.

Unlike some suppliers, Octopus has one set of tariffs. They do not charge extra for cash/cheque/CC payments.

That doesn't appear to be the case. My quoted unit prices are higher than the DD price cap figures, and Octopus have told me that I would save £80 per year by going on DD. 

LindsayT

@fivegoldstars, QrizB was right in that with Octopus prices didn't vary whatever method you paid by.
However, read my post here
So will Octopus keep to their word and start communicating with customers today?

[Deleted User]

Hi,

this is 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.

Y'all take care now.

Report

[Deleted User]

Octopus didn’t have different rates for different tariff types.

The cap, however, does have different rates for different tariff types.  If all SVTs are now at the cap, this could have the effect of making Octopus have different rates.

I’lol have to do some digging to find the SOLR rules, but there are deemed tariffs for all payment methods, and these do vary.  It might be that you were put in the cheapest option when you moved over, but that due to what’s happened with the cap it is no longer the cheapest.

MWT

fivegoldstars said:

QrizB said:

fThativegoldstars said:

I was moved to Octopus from Avro as a supplier of last resort and as its classed as a deemed tariff, I paid DD rates despite having no DD in place.

Unlike some suppliers, Octopus has one set of tariffs. They do not charge extra for cash/cheque/CC payments.

That doesn't appear to be the case. My quoted unit prices are higher than the DD price cap figures, and Octopus have told me that I would save £80 per year by going on DD. 

You may live in an area where the regional price is above the average cap figure that the press use, so that isn't necessarily wrong.

Could you post the part of the email that talks about the DD saving so we can see exactly how it is being phrased please?

[Deleted User]

Deleted_User said:

Octopus didn’t have different rates for different tariff types.

The cap, however, does have different rates for different tariff types.  If all SVTs are now at the cap, this could have the effect of making Octopus have different rates.

I’lol have to do some digging to find the SOLR rules, but there are deemed tariffs for all payment methods, and these do vary.  It might be that you were put in the cheapest option when you moved over, but that due to what’s happened with the cap it is no longer the cheapest.

From the Ofgem Guidance:

2.21. Once appointed, a SoLR will be able to charge the failed supplier’s customers on the basis of its deemed contract rate. This will cover the period from appointment until customers have agreed a replacement contract rate with the SoLR or another supplier of their choice, or the six month period of SoLR appointment expires, whichever is earlier.

MWT

Exactly, whatever was in place due to the SoLR transfer expired months ago, so there is nothing to see there.

I am more interested in seeing exactly what was said in the email, as we've seen no indications elsewhere that Octopus were changing their policy on DD vs standard credit...

If it is changing, then you'd have to wonder if it is due to the Government scheme rules for the support perhaps? ... but it would be good to see some confirmation that it isn't just a poorly worded email..