Account Balance too high?

waterman10

I've got an account balance of £288 with Octopus Energy.  The tariff is Octopus Flexible and it's dual fuel.  I'm just wondering if this is too high and I should request a refund or a reduction in my monthly payments?

I know that you build up some credit in the summer and it gets used up in the winter but I'm wondering if this balance is too high? Thanks for any advice.

Mark_d

A month's worth of elec & gas is about £200, so being in credit by £288 before the winter period does not sound much at all.

Ayr_Rage

What is the total cost of your energy over the last 12 months?

It is not unusual to be in credit to the tune of a couple of months of your average monthly bill at the end of the summer.

FlorayG

I've got over £500 credit and I intend to be properly warm on that this winter! It's entirely up to you - do you NEED that £200 now?

MikeJXE

You can soon find out online by requesting a refund

if it's too high you will get one, if not you won't 

Ayr_Rage

Mark_d said:

A month's worth of elec & gas is about £200, so being in credit by £288 before the winter period does not sound much at all.

Maybe for you!

Mine is 40% lower than yours.

Every home is different that's why there is all the confusion over the price cap and average user's annual bill.

EssexHebridean

Hi OP - first question is how much does your actual annual energy use currently total, and are Octopus stating that use correctly currently? If they are then you can use their "balance forecast" tool on your customer account to see how your account balance will fall through the winter, and you should be able to make your decision  based on that. My recommended level of DD is around £105 per month, but I currently have it set at £80 per month. My current balance is £300 credit and allowing that I expect to get at least one referral credit, that feels like a level of credit I feel comfortable with heading into the colder weather. I will keep an eye on that and adjust the DD upwards if it looks like it will need it, too. 

EssexHebridean

Mark_d said:

A month's worth of elec & gas is about £200, so being in credit by £288 before the winter period does not sound much at all.

Mark this is a very sweeping statement - far too sweeping in fact to be of any use really! While YOUR monthly energy costs may average out to around that amount, there are many on here who use far less energy, and many who use far more! Telling someone that they don't have sufficient credit based on your own energy use and expenditure isn't really very helpful! (And even less so allowing that you have precisely no idea of what sort of home, heating, etc the OP has!)

Gerry1

You can call Octopus and switch to Variable Monthly Direct Debit (Whole Bill) so that you pay for the exact amount you use.

No build-up of credit or sudden hikes in the so-called 'Fixed' DD, but higher bills in winter and lower in summer.

pseudodox

Mark_d said:

A month's worth of elec & gas is about £200, so being in credit by £288 before the winter period does not sound much at all.

Agree that this is misleading to new or non-savvy readers.  My ANNUAL bill for dual fuel is around £1000, but I would never suggest my costs as a figure for anyone else to work from.

If you are able to control your finances such that you have money put by for the inevitable higher winter bills (which can be meanwhile earning even a modest amount of interest - after all this is a money-SAVING site) you can enjoy the comparatively low summer bills and have lots of ice cream & other summer treats.  Move to Variable DD gets you the same discount as Fixed DD, because the energy company take your payment automatically each month about 14 days after they issue a bill against your submitted readings. Simples!

waterman10

Thanks for all your comments.  My monthly payment is £85.  I live on my own in a small flat and so am  a light user.

I've just listened to Martin's podcast and am thinking about switching to a fixed tarrif with another company.