utilities variable DD Outfox say they don't allow it??

Scot_39

Swipe said:

FreddieM said:

Just wondered if you pay by variable DD. I've been with Eon-Next for at least 5 years and because they only billed me for gas when I emailed them I told them I will in future only pay by Variable DD. That was fine by them and at least I know every month what is coming out of my account. This past week I have been looking to change for a cheaper option, and Outfox Energy came out in my area well ahead of many rivals. I was about to join them but thought I would ask about the Variable DD. Quite directly they said they don't allow it???? Is it my right because I always used to dictate my payments when companies write and indicated huge increases, or is it their choice? Just wondered

I treat it as a warning sign.

I treat it as a good sign - a company that follows Ofgem costing models for DD vs SC rates - and one that cares about is customer side cash flow costs and credit risks.

Unlike say Tomato who after years are still struggling to raise proper bills for many of their customers - so now being pursued by at various times Elexon, Ofgem and even the HMRC.

SAC2334

Octopus allow it , I went on it early this year and much prefer it . £50 referral  fee as well if you switch  .Plus with working smart meters you could go on a proper Tracker tariff which truly tracks the wholesale prices . Outfoxes "tracker " tariff is just a track of the price cap similar to others using the "tracker " label 

Scot_39

MWT said:

la531983 said:

MWT said:

You are likely to find it increasingly difficult to find lower-cost suppliers willing to offer variable DD due to the cash holding requirements imposed by Ofgem on suppliers. 

There is no requirement to offer variable DD as a payment method. 

Fuse are a "lower cost supplier" and do variable DD, in fact thats all they offer (although you can top up also)

I said 'increasingly difficult' not 'impossible'

Watch this space though as what Ofgem are doing to try and increase liquidity levels is going to put pressure on the suppliers in ways that customers may not find helpful.

Not paying out £100 in SoLR is a bigger help to many consumers - especially the c10m who never switched to save - but paid the price when many of the cheap weak firms Ofgem allowed to enable it failed.

LindsayT

According to the last MSE money tips newsletter, there are a few companies who only offer monthly direct debit.

I am with Octopus, maybe not the cheapest now but I am happy with them and they offer variable direct debit which like the OP, I prefer.

Qyburn

It would be perfectly possible to have variable DD as well as maintaining a positive cash balance. Or the "Symbio way" with the variable DD taken in advance based on their estimate.

Scot_39

But thats not the way most do it - and many are on it having switched from annualised because DD levels were going up to bias balances positive.

And objected to suppliers holding their cash.  Ignoring tge benefits of the c£10pm / £120 pa discount on rates over SC.  Which at current ave c4% rates would need a balance of £3000 ignoring any tax liability to earn in a savings account.  Far more than most folks bills.



 i wonder if their are any stats on it - Ofgem only includes annualised plans in its customers credit balances statistic reports I scan occassionally.

Which had been falling. But with firms moving to 1 month / 5 weeks etc min in spring  (end Mar etc)  I do wonder if they will creep up.