Octopus Energy Variable Direct Debit

webstergm

I am having problems with Octopus Energy (been a customer for over 6 years) relating to my DD. My DD is a variable one and, up until recently, meant that a monthly variable amount (dependent on energy usage that month) was taken from my bank account on, or around the 9th of the month. Now, it seems, Octopus have decided that a variable DD allows them to make withdrawals from my account whenever my smart meter generates an invoice. These are in addition to my monthly invoice on the 26th. For example, in December 2025 a payment was taken on the 12th and another one on the 19th. I let the payment on the 12th go because it as near to the 9th but I objected to the payment on the 19th. My bank refunded this extra payment but in doing so seem to have upset Octopus because the current 'live' DD was deemed by them to not exist and they insisted I setup a new one. An email from Octopus this afternoon states: "I can confirm that your new Direct Debit Instruction was successfully set up on 2nd January 2026. You are on a variable direct debit, this means that each time a reading is received, we will generate a bill within 48 hours, once this bill has been issued the direct debit will come out 14 days later." I have asked why, after two years, my smart meter has suddenly decided to produce interim monthly invoices but I cannot get a sensible answer from Octopus. Am I right in my understanding of what a 'variable DD' is or are Octopus?

MWT

Although monthly billing is normally the way it works, Octopus have always generated interim invoices from time to time in response to events like a submitted meter reading (when not on a smart meter) or events like a tariff change, or perhaps a delayed calorific value for gas consumption etc. 

When you are on a monthly fixed DD it has no impact as the amount is simply debited against your account balance.

If you elect to have a variable DD then yes, you will be charged after the usual delay between issuing the bill and processing the DD.

You should have contacted Octopus first, not the bank, this is why there is a delay between issuing the invoice and collecting the payment...

squirrelpie

I recently went to the Ombudsman about something else, but Octopus/Coop agreed to bill me for usage at the start of every month (I pay on by monthly variable direct debit). I shall be very annoyed, and go straight back to the Ombudsman, if they try to take multiple amounts per month. That's why it's called a MONTHLY variable direct debit.

edit to add: So ask Octopus for a deadlock letter and take your problem to the Ombudsman.

MattMattMattUK

squirrelpie said:

I recently went to the Ombudsman about something else, but Octopus/Coop agreed to bill me for usage at the start of every month (I pay on by monthly variable direct debit). I shall be very annoyed, and go straight back to the Ombudsman, if they try to take multiple amounts per month. That's why it's called a MONTHLY variable direct debit.

edit to add: So ask Octopus for a deadlock letter and take your problem to the Ombudsman.

It is not, it is just called Variable Direct Debit. Having a tantrum and going running to the Ombudsman would be a pointless exercise and a waste of everyone's time and resources. 

littlemoney

If a smart meter generates bills and a direct debit when it feels like it, this seems to be a good reason not to have a smart meter with a variable direct debit.

 I plan ahead each month and ensure I have funds to meet outgoings.  This approach by Octopus would create more work for me. Was considering smart meter but perhaps not now.

MattMattMattUK

littlemoney said:

If a smart meter generates bills and a direct debit when it feels like it, this seems to be a good reason not to have a smart meter with a variable direct debit.

 I plan ahead each month and ensure I have funds to meet outgoings.  This approach by Octopus would create more work for me. Was considering smart meter but perhaps not now.

You almost certainly have no choice, at some point in the next two years one will be installed whether you like it or not.

littlemoney

MattMattMattUK said:

littlemoney said:

If a smart meter generates bills and a direct debit when it feels like it, this seems to be a good reason not to have a smart meter with a variable direct debit.

 I plan ahead each month and ensure I have funds to meet outgoings.  This approach by Octopus would create more work for me. Was considering smart meter but perhaps not now.

You almost certainly have no choice, at some point in the next two years one will be installed whether you like it or not.

I hadn't heard they are becoming mandatory. My existing meters are valid for more than 2 years. 

MWT

littlemoney said:

If a smart meter generates bills and a direct debit when it feels like it, this seems to be a good reason not to have a smart meter with a variable direct debit.

Then I have good news for you, smart meters have not, nor will they ever, generate bills.

You are safe to proceed with having one installed...

Energy companies generate bills, regardless of the type of meter you have installed.

squirrelpie

MattMattMattUK said:

squirrelpie said:

I recently went to the Ombudsman about something else, but Octopus/Coop agreed to bill me for usage at the start of every month (I pay on by monthly variable direct debit). I shall be very annoyed, and go straight back to the Ombudsman, if they try to take multiple amounts per month. That's why it's called a MONTHLY variable direct debit.

edit to add: So ask Octopus for a deadlock letter and take your problem to the Ombudsman.

It is not, it is just called Variable Direct Debit. Having a tantrum and going running to the Ombudsman would be a pointless exercise and a waste of everyone's time and resources. 

From Octopus' website:

"If you have a smart meter, you’ll receive a statement every month. If you’d like to change the date you receive your statements, get in touch to let us know."

"With a variable Direct Debit you don't pay a set amount each month. Instead, we'll take a payment for your full bill shortly after issuing each energy statement."

"Direct Debit

Our preferred method, we recommend paying by Direct Debit for a few reasons:

You’re in control: you can change your payments, and what day they’re taken each month."

And no, they've never sent me an extra bill when the tariff changes. As I say, if they try to take more than one payment a month I will go back to the ombudsman.

MattMattMattUK

squirrelpie said:

MattMattMattUK said:

squirrelpie said:

I recently went to the Ombudsman about something else, but Octopus/Coop agreed to bill me for usage at the start of every month (I pay on by monthly variable direct debit). I shall be very annoyed, and go straight back to the Ombudsman, if they try to take multiple amounts per month. That's why it's called a MONTHLY variable direct debit.

edit to add: So ask Octopus for a deadlock letter and take your problem to the Ombudsman.

It is not, it is just called Variable Direct Debit. Having a tantrum and going running to the Ombudsman would be a pointless exercise and a waste of everyone's time and resources. 

From Octopus' website:

"If you have a smart meter, you’ll receive a statement every month. If you’d like to change the date you receive your statements, get in touch to let us know."

"With a variable Direct Debit you don't pay a set amount each month. Instead, we'll take a payment for your full bill shortly after issuing each energy statement."

"Direct Debit

Our preferred method, we recommend paying by Direct Debit for a few reasons:

You’re in control: you can change your payments, and what day they’re taken each month."

And no, they've never sent me an extra bill when the tariff changes. As I say, if they try to take more than one payment a month I will go back to the ombudsman.

Thank you for evidencing my point, it is not called Monthly Variable Direct Debit. If you also read the terms and conditions it states there may be times when they vary billing periods (you can copy and paste to prove my point again if you wish).

It would still be a pointless tantrum to take them to the Ombudsman, a waste of everyone's time.

t0rt0ise

I don't think the OP has said yet whether they sent a meter reading in themselves because that messes things up. As does changing tariff or starting a new tariff or even simply continuing a tariff when one ends.