Variable Direct Debit

System

This discussion was created from comments split from: Octopus - Variable Direct debit.

Mum161111

I am trying to avoid having a smart meter until it becomes essential and I wonder about changing to variable monthly direct debit instead of monthly "fixed" Direct Debit.

Would I just submit my meter reading regularly once a month, as I do at present, and my Direct Debit would be taken soon after or am I more likely to receive estimated bills between regular monthly online payments?  

I have not asked for a refund of credit but how much credit would I have to leave in my account if I ask to switch to a variable direct debit?  Thank you.

t0rt0ise

Mum161111 said:

I am trying to avoid having a smart meter until it becomes essential and I wonder about changing to variable monthly direct debit instead of monthly "fixed" Direct Debit.

Would I just submit my meter reading regularly once a month, as I do at present, and my Direct Debit would be taken soon after or am I more likely to receive estimated bills between regular monthly online payments?  

I have not asked for a refund of credit but how much credit would I have to leave in my account if I ask to switch to a variable direct debit?  Thank you.

I don't have any credit in my account and pay by variable direct debit.

wrf12345

First payment of variable direct debit would take the credit first and then remainder from the payment, if the credit was more than use it would be eaten up by the next dd, etc. You can still do a refund if needed before vdd. depending on the timing the vdd may be good for your cash flow.

Qyburn

Mum161111 said:

Would I just submit my meter reading regularly once a month, as I do at present, and my Direct Debit would be taken soon after or am I more likely to receive estimated bills between regular monthly online payments? 

Octopus say they won't generate an estimated bill unless there's no reading for three months, however my experience is that they did as soon as it was more than a month. For example I gave a reading on 30th Sep, then before I could put in my end of October reading they slipped in an (over) estimated bill on 30th October. Once I changed to taking reading on the 1st they behaved themselves.

Once you put your reading in they will almost immediately raise a bill and schedule the DD for around 16 days later. You can't directly choose the DD date.

victor2

I switched an Octopus customer over to variable monthly DD and they had a few "free" months while their credit balance was used up, before they started taking the full balance each month about a week after the meter readings. It is smart meters, but so long as you maintain the habit of providing meter readings at the same time each month, you should be fine.
They email a statement after the readings and shortly after that send an email indicating how much DD will be taken (the outstanding balance on the statement) a few days before it goes.

Peter999_2

Mum161111 said:

I am trying to avoid having a smart meter until it becomes essential and I wonder about changing to variable monthly direct debit instead of monthly "fixed" Direct Debit.

Would I just submit my meter reading regularly once a month, as I do at present, and my Direct Debit would be taken soon after or am I more likely to receive estimated bills between regular monthly online payments?  

I have not asked for a refund of credit but how much credit would I have to leave in my account if I ask to switch to a variable direct debit?  Thank you.

Personally, I think it already is essential if you wish to try and save money on your energy bills.

victor2

Peter999_2 said:

Mum161111 said:

I am trying to avoid having a smart meter until it becomes essential and I wonder about changing to variable monthly direct debit instead of monthly "fixed" Direct Debit.

Would I just submit my meter reading regularly once a month, as I do at present, and my Direct Debit would be taken soon after or am I more likely to receive estimated bills between regular monthly online payments?  

I have not asked for a refund of credit but how much credit would I have to leave in my account if I ask to switch to a variable direct debit?  Thank you.

Personally, I think it already is essential if you wish to try and save money on your energy bills.

You just have to be prepared for much higher bills in the winter than the summer. Can make Christmas even more expensive! 

bob2302

Qyburn said:

 Octopus say they won't generate an estimated bill unless there's no reading for three months, however my experience is that they did as soon as it was more than a month. 

IIRC they qualify that statement with something like "typically" or "usually". Most people are on Fixed DDs where issuing a an estimated bill is just changing a label on money you have already paid. Energy companies aren't in the business of giving free loans, so I think it's unreasonable to think that they wouldn't  issue estimated bills with Variable DD.

Gerry1

Qyburn said:

bob2302 said:

Qyburn said:

 Octopus say they won't generate an estimated bill unless there's no reading for three months, however my experience is that they did as soon as it was more than a month. 

IIRC they qualify that statement with something like "typically" or "usually". Most people are on Fixed DDs where issuing an estimated bill is just changing a label on money you have already paid. Energy companies aren't in the business of giving free loans, so I think it's unreasonable to think that they wouldn't  issue estimated bills with Variable DD.

You can't directly choose the DD date.

Octopus don't seem to agree with you.

Change your Direct Debit payment online

You can check your current balance and manage all of your payment details, including amount and payment date, from your online account or app. https://octopus.energy/help-and-faqs/articles/monthly-payments/

pseudodox

I pay VDD with EDF but they set a "default" FDD amount which they will take if I fail to submit my monthly readings.  This has never kicked in as I always send a reading on the 1st of the month & later that day an accurate bill appears on my account.  DD is taken 10 working days later - in practice this can be from 15th-17th of month to allow for weekends.  Never had to query a bill as they are always within a couple of pence of my spreadsheet records.  DD has always left my bank on the due date.  Simples.  VDD is good for me because I have minimal other winter costs (Christmas= £0), but have motor, insurance, boiler servicing & other annual bills in the summer months.

Everyone is different & FDD is great for those whose other costs make energy paid this way fit their monthly budget system.