Fuse (Fixed Monthly Direct Debit)

L00king4ad3al

when I initially switched from Octopus to Fuse the search calculation showed a similar tariff to what I was previously on. Staying with Octopus after the end of my fixed rate meant a much higher cost, so I decided to switch. My first payment was for the partial Month, so Fuse only took a fraction of the expected Month Direct Debit (DD). I later realised they had put me on a Variable DD plan, which means they literally take for exactly what I have used every Month, meaning higher bills in the winter Months.
Fuse then invited me to start a "Fixed Monthly DD", but their calculations determined that I should pay £250/Mth. (with Octopus I was previously paying £167/Mth). I was staggered, as the search results said my Monthly payments would more or less stay the same!
I opened a chat with Fuse support and they basically said most customers like to build a credit and that I could always claim any excess at a later date.
I understand the logic of building a credit, but this amount meant that my annual payments would amount to an £800 surplus.
What I have decided to do is stay on the variable DD and build my own credit in another account, then redirect the DD to the new account.

i.e. I've paid the credit I got back from Octopus and setup a regular payment of £167/Month into an account I've called "energy" and I'll keep tabs on Fuse's Variable charges, to ensure the account has enough funds. That way any credit will remain in my account.

It occurs to me that Fuse are going to make a lot of money holding onto unnecessary amounts of credit on behalf of customers. I believe that this will turn out to be seen negatively by potential customers. The thing is their quote doesn't show the extra percentage they attempt to collect until you've switched.

Ayr_Rage

It is quite clear when you join Fuse that the default payment method is Whole Bill Variable Direct Debit, you must have missed that as several other board members have.

Just posting this as a reminder to anyone thinking of joining Fuse.

L00king4ad3al

yes, I must have missed understood the wording!
That said, my issue was with the "Fixed Monthly DD" they later offered, which was a massive increase to what I normally pay.

oldernonethewiser

Do you know what the fixed DD from Octopus would have been on a new tariff?

L00king4ad3al

I memory serves me correctly it was approx £185, well down the list in the search list.
When I initially told Fuse I was switching back they reminded me I'd have to pay an exit fee £50 x 2 (gas/electric), as after the 14 days cooling off period.

I think the Variable DD will be fine, as long as I manage my own regular payments and build the credit for winter

QrizB

That said, my issue was with the "Fixed Monthly DD" they later offered, which was a massive increase to what I normally pay.

That's to prevent you falling into debt over the winter period. You add enough credit between now and December that the higher bills from then through to March can eat the credit without your account falling below zero.

It seems that most folk choosing Fuse stick with the variable DD.

Swipe

Depending on the amount of credit you got back from Octopus, I'd pay more than £167 a month into your savings account starting now to be on the safe side to cover any higher winter bills and then drop it back down to a lower amount at the end of winter.

L00king4ad3al

yeah, that's why I thought I'd share my method of funding a separate account, in order to manage my own regular payments

For me its all about keeping the money in one of my accounts and not fuse ;-)

Thanks for taking the time to share your views

luci

https://forums.moneysavingexpert.com/discussion/comment/82147523#Comment_82147523

I didn't miss that Fuse's default is Whole Bill Variable Direct Debit. I knew that before I switched to them. I wanted to change to a fixed DD, probably just because that's what I've always had for eons. What I didn't know, is that Fuse adjust / increase the DD to account for the higher winter bills. Paying a variable DD isn't a problem for me.

I have just switched from Outfox, who I joined in November last year. As that was at the start of the winter period, my fixed DD was never enough to cover the monthly bill. I have always been in debit. I kept waiting for them to adjust my DD, but that didn't happen. When I get the final bill, I'm expecting it to break even.