Octopus direct debit guarantee.

debitcardmayhem

scottyp123 said:

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.

But you are quite willing to take their energy without paying for it at the till.

Gerry1

scottyp123 said:

Why give them too much money though when its just as easy to give them the right amount

That's what MVDD will do, but rates will be lower.

scottyp123 said:

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.

That's what MVDD will do, but rates will be lower.

scottyp123 said:

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.

Effectively you are, because Ofgem regulate the energy companies.

scottyp123

I'd rather pay the extra not to have a DD to be fair and as I said I'm more than happy with the arangement at the moment, if I decide I want to pay a bit less for my energy I'll just turn the heating off a bit earlier or down a bit, or go to bed a bit earlier. I've got an invoicing day today so I'm at home in my office, the thermommeter on my desk is reading 17 at the moment and I'm sat here in shorts and a T-shirt, I work in empty unheated houses a lot and have only put a jacket on on two occasions this winter so as you can see its not as if I use loads of gas every month to be worried about a slight extra cost in energy prices. If I was paying £500+ a month like a lot of people seem to be doing I'd maybe do something about it.

booneruk

Absolutely, and it's why I switched to variable monthly direct debit as soon as I opened my Octopus account. I can budget though, a series of large winter bills is no skin off my nose.

However, clearly there are people who would struggle - whether that be with cashflow, money management problems etc - where a fixed DD might benefit them. In these cases it's impossible for any energy company to calculate exactly how much energy will be used over 12 months, so there will be shortfalls and overshoots. 

Paying more than you need to and then requesting a refund, or having your next 12months of billing be lower does not involve 'giving' money away though.

Qyburn

debitcardmayhem said:

But you are quite willing to take their energy without paying for it at the till.

I don't think anyone should feel the slightest bit guilty paying in arrears if that option is offered by the supplier.

EssexHebridean

scottyp123 said:

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.

Presumably though you do set additional money aside through the year to cover the cost of Christmas spending? You don't expect your December pay to cover the full cost of the festive season - presents, food, travel, the lot, do you? Credit ahead of winter in energy accounts is exactly the same as any other responsible person managing their budgets for Christmas. With energy accounts you have the option of letting the supplier manage this for you (fixed DD) or managing it yourself as you do with that Christmas money, too (variable DD). 

Octopus are by far the easiest supplier I have ever dealt with. I work out my use, and what my DD  needs to be and set it accordingly. They periodically review and sometimes say they want to put the DD up a bit (because they aren't aware I have several friends shortly intending to use my referral code to switch their supply to Octopus - meaning I and my friend get £50 each time) and sometimes they want to put it down a bit (because they aren't aware what sort of buffer of credit I want ahead of the winter). I just re-set it to the level I want it to be, and all good. Periodically I review the credit level and decide I have more than I need - I request some back, and a few days later it pops back into my bank account. Easy. 

scottyp123

I just dont get what advantage a DD has to me, once one is set up then someone else has control of my hard earned money and if mistakes were never made then we wouldn't need the DD guarantee. I get they are handy if you are hopless with finances but years ago there was no such thing and my parents managed just fine paying all the bills.

And yes I do set extra money aside for Christmas but Octopus not only want me to set extra money aside for Christmas, they want me to give them even more in case I have a birthday bash as well.

Gerry1

DDs mean that you don't have to remember and take action to pay the bill. That could be useful if you are on holiday or in hospital.

And what part of Monthly Variable DD do you not understand?

EssexHebridean

The advantage of the DD is quite simply a decent saving on your energy bills, plus not having to remember to make the payment/risk something happening that means you are unable to make the payment and potentially end up with a missed payment on your credit file. 

You keep phrasing things as though you think that Octopus are trying to take money from you - you do understand that any credit either gets used to pay your bill or can be paid back to you? You’re not just handing money over to them and never seeing it again.

as Gerry says - MVDD would be a perfect way forwards for you - unless of course you actually ARE happy to give Octopus more money than you need to for your energy use, in which case, keep on with what you’re doing! 

pseudodox

I submit meter readings 1st of the month.  I then get a bill within 24 hours & I can check it against my energy spreadsheet. Readings are spot on, but variable calorific value &/or rounding may result in 2 or 3 pence discrepancy.  If ever there was an issue with the bill I have 2 weeks to query it before payment is taken.  If for any reason I cannot submit my reading (holiday, illness etc), EDF will produce an estimated bill &/or take a "default" DD but this has never happened.

DD is very secure with the bank guarantee system in place.  It puts that safeguard in YOUR hands.  A DD that is taken that you are not in agreement with can be reversed by your bank.