Octopus direct debit guarantee.

Gerry1

Really can't see what you're complaining about: if you don't like Octopus, you'll find the others are worse, often far worse !

If you don't like having a credit balance building up with your existing Fixed Monthly DD, change to Variable Monthly DD, aka Pay Whole Bill.  You or your smart meters send a reading, that triggers a bill and you pay in full for EXACTLY what you've used.

At least Octopus offer VMDD, some others say it must be prepay, Fixed DD or the highway.  You'll probably also find your standing charges will increase if you leave Octopus.

Scripto

The facts speak for themselves.

In a recent email to me on this subject, Octopus claimed to fulfil the task (on behalf of customers)  of what we refer to in business as ‘resource smoothing’. That is to say calculating and spreading the financial  burden evenly over the year so there are no sudden upticks in charges, when the beast-from-the-east arrives. Easily managed by computer and my actual usage very consistent over three years. Fair to Octopus and fait to the punter.

Their job, not mine. Their written promise, not mine. A promise I believed they were managing and a promise they manifestly failed to fulfil. Bills covering the last 12 months were based on the Octopus estimate of an average of £171.24 per bill (£2054.87p.a.). The reality as it happens, an average of £153.77 per bill (£1845.22p.a.). Obviously less. On average per bill I was £243.69 in credit and therefore always an excessive amount in favour of Octopus.

They had a duty to honour their promise and failed in that duty, which amounts to negligence.  In my book this is yet another loyal customer scam.  However good they may or may not be in other respects is irrelevant. No excuse for that behaviour

booneruk

I see no scam. I don't think Octopus promise that a year of fixed direct debit payments will exactly match your usage at the end of the year. 

You can either switch to variable direct debit where you pay for what you use each month, or request a credit balance refund

https://octopus.energy/blog/credit-refund-account-balance/

molerat

I find Octopus the easiest to manage the DD.  My granddaughter's was set at around £230 (due to lack of historical data, another story) and I reduced it to £100 with no problems or comebacks or them trying to increase it back up - well they did after about 6 months but I put it back down again.  When she was going to move out I worked out roughly what her bill would be and set the DD so she would be at around £0 on move out day.  You are pretty much free to do what you want so everything is in your hands, change it to what you want or just sit there and moan about what they are doing, your choice.

Xbigman

Scripto said:

The facts speak for themselves.

In a recent email to me on this subject, Octopus claimed to fulfil the task (on behalf of customers)  of what we refer to in business as ‘resource smoothing’. That is to say calculating and spreading the financial  burden evenly over the year so there are no sudden upticks in charges, when the beast-from-the-east arrives. Easily managed by computer and my actual usage very consistent over three years. Fair to Octopus and fait to the punter.

Their job, not mine. Their written promise, not mine. A promise I believed they were managing and a promise they manifestly failed to fulfil. Bills covering the last 12 months were based on the Octopus estimate of an average of £171.24 per bill (£2054.87p.a.). The reality as it happens, an average of £153.77 per bill (£1845.22p.a.). Obviously less. On average per bill I was £243.69 in credit and therefore always an excessive amount in favour of Octopus.

They had a duty to honour their promise and failed in that duty, which amounts to negligence.  In my book this is yet another loyal customer scam.  However good they may or may not be in other respects is irrelevant. No excuse for that behaviour

The formula for calculating the next years DD is set by OFGEM not Octopus. You say your usage over three years is consistent, but we've had 3 mild winters. The OFGEM formula dictates that forward DD's are set on the basis of an average winter, NOT a mild one. A DD around 12% to 15% too high for a mild winter is correct. 
I've looked at a few different options for the next year and every company I got a quote from slightly overestimated my usage for this very reason.



Darren

scottyp123

Hi, I'm the OP of this thread and I've jst seen the latest replies, thanks for all the advice and I now just give the meter readings to Octopus once a month and then pay the bill when its issued. Yes its a couple of quid more each month than direct debit but its by far the best option as far as I'm concerend.

My main and really only point in my opening post was that Octopus used the word NEVER when they talked about increasing the tarrif on none DD paymets, then increased them, you cant use a word like that and then say it didn't mean forever.

Anyway the reason for responding today was to point out that Octopus's estimator is a load of rubbish and proves I'm now paying the right way. You may have to bear with me on this one and think about it a little but as I said originally Octopus wanted to set the DD at about £170 a month, so thats 12 payments of £170 both in summer months and winter months, this figure was arrived at by the Octopus estimating software based on my previous bills I would imagine, or so they say. With it so far?

The next step was to cancel the DD as I though it was too much to pay over the year so I gave the first meter reading in September and the bill was about £120, same useage as last year, Octobers bill was £160, again same a last year or thereabouts. But for November and December I didn't give a reading and let them estimate them. For November Octopus estimated the bill at £165 and Decembers at £178.

So, how is it possible they can estimate my bills to be 12 x £170 yet only estimate Novembers and Decembers bills at the same price, I will clearly use a lot less gas in the summer, the winter payments are always the most expensive by far. Its obvious that the DD estimates are designed to shovel as much money Octopus's way as possible regardless of the amount of energy anyone might use with them.

Yes I know I'm way over thinking this by far but it really annoyed me that they think the general public cant see stuff like this happening.

booneruk

I don't get the problem. If you pay too much via whatever fixed DD (non monthly variable) payment method you're on then after 12 months you can request a refund.

End result is you pay the same, for whatever energy you've used. 

Swipe

As you are now manually paying monthly, I'd ask again to be signed up to variable direct debit to get the discount.

scottyp123

Swipe said:

As you are now manually paying monthly, I'd ask again to be signed up to variable direct debit to get the discount.

Its really not that much different in cost to be honest, the less DD's I have the better as far as I'm concerned, I think my broadband is my only DD at the minute and that is fixed for months and months ahead without any additional payments involved at the end of it.

scottyp123

booneruk said:

I don't get the problem. If you pay too much via whatever fixed DD (non monthly variable) payment method you're on then after 12 months you can request a refund.

End result is you pay the same, for whatever energy you've used. 

Why give them too much money though when its just as easy to give them the right amount, just like some people don't understand my take on the matter I don't get what sets energy costs apart from every other bill, its not that they want the cost of the bill a month upfront, they also want the cost of the bill plus and extra bit that may or may not be needed months down the line.

I spend a fair bit every month in ALDI knowing I will spend a lot more over the Christmas period with them, however I dont give ALDI extra in July and August to cover the cost of Christmas I just deal with it when it comes. Remember the people that tried to budget for Christmas a few years ago with that hamper deal, they ended up losing everything.

As for OFGEM or whoever saying they want people in credit and don't let debt buid up etc etc. Thats not really my concern what they say, I'm not bound by their terms in any way shape or form.