Direct debit - Octopus

Veloflyer

A query please….I have a monthly fixed unit price DD set up with Octopus. Today I received a mail basically outlining the below.

What's happening We’re suggesting an update to your monthly Direct Debit from 19 November.

Why now? Most people use much more energy in winter, when the heating comes on. Adjusting now stops your balance draining into debt before the cold weather ends.

I get this, but firstly it is not a suggestion. Looking at my account they have automatically increased my DD amount from 101.59 to 127 per month.

Secondly, their "suggestion" is clearly less than what has actually happened - see below.

Thirdly, I am in credit by £36.

Some Qs then

Forgive my ignorance, and it may be in the small print somewhere, but are they allowed to automatically increase DD amounts? This seems like sharp practice to me - fraud even - as I am paying for goods/services not received. This is especially galling considering I am in credit with them.

I appreciate I can go into my account and change it, but had I not read the mail - it landed in my junk folder - then I would be none the wiser. I also appreciate that it all comes out in the wash, but control of my money should surely be for me alone to decide? Also, I may not have sufficient funds at the time to pay the increase, I may use far less electric should I not be at home, any potential interest earned on the difference between what I owe and what they take should be mine not theirs.

debitcardmayhem

There are numerous threads about this e.g. https://forums.moneysavingexpert.com/discussion/6687608/what-is-the-etiquette-for-debit-or-credit-on-energy-bills-now#latest

Isthisforreal99

Like many, you are confusing a fixed tarrif with fixed payments, there is no fraud here. You are not allowed to go into debit and Octopus are of the opinion your current credit won't last through the winter months.

If you want to, you can adjust the DD online or opt for variable direct debit where you pay monthly for what you use.

p.s. it's not their fault it ended up in your junk folder.

WiserMiser

This question appears at least monthly. It's not sharp practice or fraud: your 'Fixed' Direct Debit is not your bill: it's just a contribution to a kitty that may or may not have enough in it to pay the bill. They can legitimately increase it if the current amount is likely to make you go 'overdrawn'.

If you don't want to build up credit, switch to Monthly Variable Direct Debit. You can't do this online, you'll have to phone or email Octopus. Pay the suggested DD amounts into an easy access savings account and use it to pay the energy bills. That way you'll get a bit of interest, not your energy supplier.

Of course, that means higher bills in winter and smaller ones in summer.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82182988#Comment_82182988

You miss the point. I am well aware of the difference between tarrif and payment. I am not in debit with them and never have been. I am well aware my current credit is not sufficient. The point being I - not them - will increase it accordingly.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82182992#Comment_82182992

….but at present I am in credit and not overdrawn. They also have no firm idea what my future usage would be as for all they know, I may not be at home over Winter. The point being I would like to increase it if necessary and be in control over my money, not automatically leave it to them.

QrizB

I appreciate I can go into my account and change it, but had I not read the mail - it landed in my junk folder - then I would be none the wiser.

As well as the points that others have made, it sounds like you needed to adjust your email filtering so that emails from Octopus aren't directed to your Junk folder.

Ayr_Rage

It is neither sharp practice or anything verging on fraud.

This is the way all fixed amount DD accounts work, it will be outlined in their Ts and Cs regarding adjustment of amounts and the notice they give you,

Just because you missed the email because it went in your junk folder does not mean they did anything incorrectly.

WiserMiser

https://forums.moneysavingexpert.com/discussion/comment/82183003#Comment_82183003

The point being I would like to increase it if necessary and be in control over my money, not automatically leave it to them.

MVDD fits the bill perfectly !

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6688281/direct-debit-octopus

So you are in a bad place then if you only have a £36 credit, I'm assuming you havent just joined?

The concept of the fixed cost plans are that you pay too much in summer so build up a credit and then when winter comes and your useage goes up significantly you then erode that credit. For you it gives the same amount you pay every month rather than low bills in summer and high bills in winter and for them they sit on a credit knowing you can afford your bills. When winter is over you are overpaying again and building up the buffer for the forecoming winter.

Normally the credit would be notable more than £36 as for most that wont offset 4 months of higher bills.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82183006#Comment_82183006

It's taking money for nothing by way of return. Fraud in my book. However, if that is in their T&Cs then I have no leg to stand on. I have not stated they did anything incorrectly just because it landed in my junk mail.