Octopus - Monthly Direct Debit Query.

43722

I have recently been migrated to Octopus, no major issues to date. However, a small concern is niggling me.

I pay my bill by monthly direct debit in full, upon receipt of the bill. My last bill arrived late March, and was paid in early April via DD.I

On April 01 new tariffs were introduced, and in line with consumer guidance, I sent updated meter readings to Octopus. I anticipated that my next bill would arrive in late April, and I would pay by DR in early May. However, it seems that Octopus are planning to take an extra amount tomorrow, also by DD, to cover the account right up until the reading I sent on April 01. In other words, they are planning to take a second CD from my account in the same month. 

In short, I am wondering if it is possible and correct for a company to take money more than once a month, when I believed I was paying by monthly direct debit.  

Peter999_2

If I were you I would request to go on variable DD.    This means that you get a bill on say 14th of the month and then two weeks later that amount comes out via DD.   Therefore you never get into situations such as the above and you only ever pay for what you actually use.

43722

Actually, now I think about it, that's what I did with my previous supplier, and I have not instigated any change with Octopus, so I may be using the wrong terminology, I will check tomorrow. So thank you for this. 

Jyana

43722 said:

I have recently been migrated to Octopus, no major issues to date. However, a small concern is niggling me.

I pay my bill by monthly direct debit in full, upon receipt of the bill. My last bill arrived late March, and was paid in early April via DD.I

On April 01 new tariffs were introduced, and in line with consumer guidance, I sent updated meter readings to Octopus. I anticipated that my next bill would arrive in late April, and I would pay by DR in early May. However, it seems that Octopus are planning to take an extra amount tomorrow, also by DD, to cover the account right up until the reading I sent on April 01. In other words, they are planning to take a second CD from my account in the same month. 

In short, I am wondering if it is possible and correct for a company to take money more than once a month, when I believed I was paying by monthly direct debit.  

I seem to remember that last time I was with Octopus that they bill you every time you submit a reading if you don't have a smart meter. Which basically means you are paying a variable DD more or less already (and would still get two bills a month if you did the same double amount of reading updates in a month again later on too).

Might be easier to move the day of the month you send you readings in to the 1st of each month, in order to sync up with any future interim price changes instead. Or change to a smart meter and let them just handle it all for you. 

43722

Again, thank you for the response Jyana. The point about moving the meter reading date is well made and I may well act on that.  Nor did I know that a new reading would generate a new bill with Octopus.

I think I will also be asking my own bank though about guidelines on how DD's are regulated. I had always assumed that my energy bills were paid by monthly DD, (recently variable DD) I think I will check for a concise meaning of the terms of my DD.

As I say, it's a small issue. I have had a decent email response from Octopus about this issue, and the money is there to pay the bill.

Qyburn

43722 said:

In short, I am wondering if it is possible and correct for a company to take money more than once a month, when I believed I was paying by monthly direct debit.  

That's how Octopus work if you pay by variable DD. Every meter reading generates a bill, and a DD. I think they actually call it "monthly", on my account it's noted as "You are paying a variable amount depending on your usage."

Qyburn

Just to expand on the point about dates, if you put your reading in on the 1st then the bill will cover the previous calendar month which is convenient for record keeping. It does mean the DD will be taken around the 17th, which may not suit some.

pearl123

You do have the ability to adjust the amount you pay via dd on their website. For months, I've only been paying the mininum. 

mmmmikey

In answer to your specific question, there's nothing in the DD rules about the frequency or regularity of the payments. Although it's common for DDs to be used for monthly payments there's no reason it can't be used for ad hoc payments as and when if that's what you agree with the other party. It's perfectly in order for Octopus or whoever to take variable amounts at a variable frequency, the important thing being that they tell you about any payments 10 days in advance. They are most definitely not allowed to take variable amounts on different dates without telling you in advance. But as I understand it, you've been billed and told in advance about the payments. So everything is in order and it's just a question of understanding your agreement with Octopus and making sure it suits your needs.

pseudodox

This extra payment may be generated by the Kraken system if you are on MVDD as I get the same with EDF.  I submit readings (no SMs here) usually on 25th of each month & get invoiced within 24 hours but when there is a rate change I submit readings on the 1st also.  This generates another bill, but only for 5 or 6 days consumption.  The first bill gets paid around the 13th, the second on 17th/18th.  My next bill will then be smaller than a full month as it is only for 25 days.  I keep thinking of moving the bill date to 1st but it's not an issue as over the year the 16 bills will be the same total as 12 would be.  Instead of paying FDD I keep money in a savings account & transfer over to current account to cover my MVDD bills a couple of days before payment will be taken.

dunstonh

In short, I am wondering if it is possible and correct for a company to take money more than once a month, when I believed I was paying by monthly direct debit.  

Yes it is.  They just need to notify you in advance.

I think I will also be asking my own bank though about guidelines on how DD's are regulated. I had always assumed that my energy bills were paid by monthly DD, (recently variable DD) I think I will check for a concise meaning of the terms of my DD.

You have a variable direct debit.  There is no breach as long as you are told in advance of that they are taking.