Octopus - Solar FIT payment withheld due to energy supply account debt

supernan_3

My FIT licensee is Octopus. They've performed well over the past few years. They send me a web link quarterly. I follow the link and submit my generation reading. They settle up very promptly, usually within a few days.

The most recent reading was submitted 18th September 2026. Octopus promptly calculated the FIT payment due and sent me a statement, then emailed me to say the payment is being withheld until I clear my energy supply account debt by direct debit.

The FIT payment due is £1234. The energy supply debt is £72.

I emailed for an explanation and have been informed Octopus have a 'refund policy' which requires the energy supply debt to be cleared before they can issue a 'refund'. I've tried arguing that the FIT payment is not a 'refund' and that FIT is entirely separate from supply but Octopus are unreceptive and simply gave me the options of using part of the FIT payment to clear the supply debt or making an adhoc payment to clear the supply debt.

This doesn't seem fair or right to me. I've asked Octopus to explain how they have the right to withhold the FIT payment but they've simply stated it's their refund policy. I have raised the issue as a complaint. Octopus have now taken the £72 payment by DD, stated the issue is resolved and closed the complaint.

Anyone else experienced similar behaviour from Octopus or any other FIT licensee?

MattMattMattUK

Was it a debt, an unpaid bill, had the Direct Debit previously bounced or was not set up, or was it a normal bill that was waiting for the Direct Debit date?

QrizB

I can't really fault Octopus. Their T&C have a clause whereby the customer agrees to keep their account in credit at all times. I'm surprised that you were able to get into debit.

I've tried arguing that the FIT payment is not a 'refund' and that FIT is entirely separate from supply

I'm would be inclined to agree with Octopus that you have one energy account and so FIT payments aren't separate.

Octopus are unreceptive and simply gave me the options of using part of the FIT payment to clear the supply debt or making an adhoc payment to clear the supply debt.

Both those options sound reasonable. For you the customer, there's no significant difference in paying Octopus £72 and then receiving £1234, or in paying Octopus nothing and then receiving £1162.

Octopus have now taken the £72 payment by DD, stated the issue is resolved and closed the complaint.

Noting that you only submitted your meter reading on the 18th, and it's now the 26th, this entire storm-in-a-teacup only lasted eight days.

Anyone else experienced similar behaviour from Octopus or any other FIT licensee?

I can't say I have, but my FIT is with E.ON Next (was NPower) and they haven't been my electricity supplier for a decade.

Having your FIT with a separate supplier to your supply seems a simple way to avoid this happening again.

supernan_3

https://forums.moneysavingexpert.com/discussion/comment/82149379#Comment_82149379

The supply is on standard tarrif with the bill settled in full each month. The bill of £72 was calculated based on manually entered readings and was awaiting normal Direct Debit settlement.

supernan_3

Thanks for your reply. This 'storm in a teacup' seems to be Octopus exercising power beyond their licence. As you point out at the end of your reply, I'm free to move my supply account to another provider where Octopus would have no visibility of my debt/credit. The principle I'm trying to establish is that Octopus have no legal right to withold the FIT based on the supply debt.

Mister_G

I have both my FIT and electricity supply with Eon. They certainly keep the two seperate and even if the supply account is in debit, they still pay the full FIT amount every quarter.

QrizB

The principle I'm trying to establish is that Octopus have no legal right to withold the FIT based on the supply debt.

I don't think any such principle exists.

Para 5.1 of their FIT terms says they will make payment within six weeks; they've met this target. Based on your current billing arrangements, where you pay by DD in full each month, they will always meet this target even if they wait to make payment until after your DD goes through.

supernan_3

https://forums.moneysavingexpert.com/discussion/comment/82149419#Comment_82149419

If no such principle exists and Octopus do have the right to withhold, where is this right documented? I don't see it in their FIT terms.

QrizB

If Octopus do have the right to withhold, where is this right documented?

Octopus's T&C say they will pay within six weeks. They paid within six weeks.

I don't see it in their FIT terms.

It would only need to be explicit in the terms if it was a reason to delay beyond six weeks.

supernan_3

https://forums.moneysavingexpert.com/discussion/comment/82149505#Comment_82149505

They have not yet paid the FIT payment.
The Direct Debit payment of £72 is shown as pending.
I've today submitted new energy usage meter readings which have been automatically calculated and resulted in a new account balance of -£104 which will not be cleared by the pending DD of £72.
The account will remain in debit status until the next Direct Debit in October.
If I submit readings in October before the Direct Debit reaches the account, the account will again remain in debit and so on.
The policy of making FIT payment conditional upon a zero or above balance in the supply account is illogical and as far as I can see, has no legal/contractual foundation.

wakeupalarm

You can raise a complaint, which you have done. You can wait for Octopus to respond and after their final response or 8 weeks, which ever comes first, you can take your complaint to the Energy Ombudsman.

If the principle is important to you take it to the Ombudsman and see what Octopus have to say to justify it.