Octopus hidden charge

StamfordRoars

I am an existing Octopus customer. They gave me a quote for a new agreement as my current fixed tariff runs out on 2nd October 2024. It is the flexible tariff and I am happy with that but the quote includes a £38 a month "catch up " payment that will run until April 2025.
I've not exchanged messaging with them for six weeks and all they say is that this is an amount required for my account to balance.
However my account is in credit, this amount does not show as a monthly payment on any previous bills and I cannot get clarity from them about what the charge is actually for.
Has anyone experienced this and if so what do I do?

Netexporter

I expect it is in anticipation of the rate rising and your consumption increasing over the next two winter quarters.

Gerry1

Just call them and ask for Variable Monthly Direct Debit.

Of course, that means higher bills in winter and lower ones in summer, but it's simpler, it's easier to spot higher than expected usage, and you can earn interest on the capital that's no longer tied up.

FreeBear

Gerry1 said:

Just call them and ask for Variable Monthly Direct Debit.

Of course, that means higher bills in summer and lower ones in winter

Unless you are down under, I think you have it the wrong way round - Higher bills in the winter, lower in the summer (unless you run an air conditioning system at sub zero temperatures).

Gerry1

I wondered who'd be the first to spot that... 🫣

EssexHebridean

It sounds like the account has run into debt, and so as well as needing to ensure that the correct amount is being paid going forwards, you are also being asked to pay back that debt over a period of time.  What balance does your last physical bill show after use and payments have been taken into account? What balance shows in your app? 

MP1995

I agree this sounds more like a debt repayment you should ask Octopus for clarification as to what this payment is for.

StamfordRoars

to be clear I am £200 in credit on my bill and have always paid the recommended amount direct debit. Nowhere on my bill does it show arrears and it hasn’t done for at least 18 months. They base my direct debit amount on predicted spend over 12 months so this should not be arrears. After exchanging messages etc for seven weeks they still have failed to tell me when I started paying the £38 per month and why. Any other thoughts or am I the only one that has this additional charge?

EssexHebridean

Hmmm…in that case, I’m wondering whether your DD is a little low to cover your projected use going into winter, and it’s to do with setting your account up to ensure you don’t end up in debt too early in the winter? Might that be a possibility - how does your annual use projection compare with your DD amount? Have you checked the “balance forecast” on your customer account? 

Ildhund

FreeBear said:

Gerry1 said:

Just call them and ask for Variable Monthly Direct Debit.

Of course, that means higher bills in summer and lower ones in winter

Unless you are down under, I think you have it the wrong way round - 

I always thought that winter and summer were the other way round too, down there. 

StamfordRoars

EssexHebridean. Thanks for that. This is the math. Their annual predicted cost, elec and gas together is £2209.88. I am paying £203 per month direct debit and according to the bill issued today I am £406 in credit. Doing the math has turned confused me into angry me. I even checked to see whether there was a debt when everything switched from Shell to Octopus but there wasn’t.
i am completely baffled and despite them saying three days they would. ‘escalate’ the issue to a more senior level to give me a clearer response no clarity as yet. My feeling is I should claim the credit and bank it without spending it and then be ready to leave so they cannot simply grab the money if I switch to a new tariff or leave.