Direct debit - Octopus

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82183010#Comment_82183010

Yes - could be a solution. Thanks.

Swipe

Switch to Variable Direct Debit and put a few hundred quid into a savings account and then start paying what you would normally pay for the DD into it monthly. Then you have full control of your money.

WiserMiser

https://forums.moneysavingexpert.com/discussion/comment/82183016#Comment_82183016

Fraud in my book.

You're still completely missing the point, as everyone is telling you. It would only be fraud if the kWh consumed (or the Standing Charge) were charged at more the notified rate. That's most unlikely to be happening — do you have any evidence to the contrary?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82183016#Comment_82183016

your book is wrong, its meant to be of mutual benefit, you get flat bills rather seasonal.

If you dont want that then go onto a variable DD and you will pay each month exactly what you have used but your winter bills are likely to be 2-3x to your summer bills

Brie

The only way to be in complete control of your payments to Octopus is to pay them personally each month or a set amount automatically by standing order. Either of these likely will mean that you can't have a preferential tariff. Or get a pay as you go set up.

For myself I hated the fact that the utility companies insisted I had a massive credit (3+ months) so I switched to a variable DD. That way things are paid without my input, I get a good tariff and my money stays in my bank account rather than theirs. I'm fine with the different amount being taken each month.

Scot_39

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

Siwtching to MVDD At this time of year is not as clear cut a universal recommendation.

As that bank and pay only works for those with otherwise limited income/tight savings if they start in spring to build savings - then they can withdraw when bills increase in winter.

I wouldnt recommend switching now for many folk at this time of year.

As switching now risks depleting some folks saving and leave them struggling to manage higher winter bills without the "banked" summer savings to offset the higher months.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82183032#Comment_82183032

It is fraud in my book as they are taking money and I receive nothing - at the point of them taking the money - by way of return. In fact, as I am in credit, they owe me. I realize many folk think this is perfectly OK, but I don't - especially as they also determine how great the fraud is by determining the amount of my money they believe is appropriate. However, it is somewhat academic as if it is in their T&Cs I have no redress and there seems to be a workaround.

t0rt0ise

https://forums.moneysavingexpert.com/discussion/comment/82183157#Comment_82183157

Well then, choose a different payment method. Nobody's forcing you to pay that way. It can hardly be fraud if it's your choice not to use a different payment method.

silverwhistle

They have given you the opportunity to be in control but you didn't take it. They also have a responsibility not to let you get into debt and if you are only in credit by about a third of a month it seems more likely that you end up defrauding them by taking electricity with nothing by way of return! FWIW my current credit amount is nearly 190, which is nearly 2.5 months worth.

Just repeating that it's fraud in your opinion doesn't make it so.

zedonk

It used to be that you could build up a bit of a debt in winter, and a bit of a credit in summer, and hopefully it all evened itself out.

The policy has changed and suppliers (not just Octopus) are now not meant to let customers be in debt at all.

I don't like this approach personally because it means I'm essentially giving my supplier an interest-free loan. I'd rather that money was in my bank account earning interest!

But I suppose you could argue that's why you get cheaper rates for paying by DD. It isn't fraud, and is actually Octopus following the policy they're supposed to.