ENERGY SUPPLIER has reduced my monthly debits

I pay for what I use but have a direct debit which is variable. Before I had a smart meter I had to send a reading every month but now the smart meter does it for me. It does mean I have to pay more in the winter but the company are never holding on to my money, nor do I get a nasty shock after underpaying. It suits me.

There are good and bad stories about all energy companies.

28 million households with different needs, managing their finances in different ways.

Some people prefer variable direct debits, some prefer fixed to spread the cost and avoid what Martin Lewis calls a “cash flow hit” when winter bills arrive, some prefer to pay on demand and some prefer a prepayment meter.

Early days, but my experience with OVO has been good. I like the clean, clear customer interface and like the work they do with the Woodland Trust.

I would say, for anyone contemplating switching, they might, at the moment, be the better bet of the two big supply-only companies. Octopus now has to assimilate two million Shell customers into its operations.

Anyone know what is happening with Shell’s 500,000 broadband customers which are part of the deal with Octopus? Challenger Cuckoo? I was with Shell until April. They were trying very hard, offering very generous incentives, to get customers to switch to their broadband when they knew they were trying to sell the business on. Hmm.

octopus.energy/press/Utilities-software-Kraken-licences-first-ever-broadband-deal/

OVO have a “probationary” period for new customers. They don’t offer variable direct debits but you can negotiate a fixed one. That is set for three months after which you can adjust it up or down.

OVO will refund credit balances in excess of £25 above the amount of the monthly direct debit as set, allowing for a bit of fluctation.

If you don’t pay by Direct Debit, you’re Paying On Demand, once you’ve received your bill. It’s slightly cheaper for us to manage your account when you pay by DD – so Paying on Demand costs you that little bit more.

www.ovoenergy.com/help/article/setting-up-direct-debits

Thanks, ninamoore, that's what I was trying to say. You are the customer - so don't have to comply with their 'system'. If you really feel the need to pay by DD, you can always change it yourself - or just cancel it and set up a new one.

Don't ever fall for their 'minimum acceptable' payment demands. They can't demand anything unless you owe them money. Just say that you'll be changing supplier and they soon back down.

I have smart prepayment meters, by choice, as I like to pay as I go. Yes it means my gas bill is much higher in the winter but I don't like the idea of either variable direct debits or a big bill every quarter. The government has made them stop charging prepayment customers more than DD customers this summer as well, which saves around £50 a year. Its the standing charges that annoy me - I live alone in a small one bedroom flat, they really penalise people like me. It comes to over £300 a year just to pay the standing charges currently.

I have been with Ovo for years. No complaints - but I send in a meter reading each month and pay when the bill arrives. I refuse to pay fuel bills by direct debit.

Well. I have been with Ovo for many years.

A few months ago I was paying £86 per month.
Now they have increased it to £196 per month.

And they keep emailing me to say I’m in debit by a vast amount.
I’ve hardly used any gas and no more than usual electricity.

They are greedy, profiteering you know what.

Scottish Power owe me £300 from March! Considering the Ombudsman now.

We pay monthly direct debit with Scottish Power but send our meter readings in on line at the start of each month so we have a 5% discount for online dim but have some control over how much can pay. Our bill is based on our usage for the previous year and it works well

Shell have wanted out of the domestic energy market for a while. The lack of investment in their online systems and poor customer service were apparent. I was also with First Utility then Shell but escaped to OVO after a bad experience with Shell earlier this year. So far so good.

This:

www.thetimes.co.uk/money-mentor/article/octopus-energy-shell-energy-news-takeover-existing-customers/

Octopus Energy has announced that it has signed a deal to complete the purchase of rival energy firm Shell Energy UK. The move will affect approximately two million UK households. Here we explain what you need to know.

The deal, which is expected to be completed in the final quarter of 2023, will see Octopus Energy grow its total customer base to 6.5 million. This will make Octopus Energy the UK’s second-largest energy provider behind British Gas.

For now, Shell Energy customers should sit tight and wait for Octopus Energy to contact them towards the end of the year, the supplier has said. It has promised there will be no disruption to customers’ energy supply.

It is unclear how long it will take for all Shell Energy customers to be migrated to Octopus’ services. However, Octopus recently completed the acquisition of another rival, Bulb. All of Bulb’s 1.5 million customers were successfully migrated within six months, which Octopus notes is an industry record.

We keep being moved on (is it something we said? ). We were with First Utility who were taken over by Shell and now apparently we’re being shunted on to Octopus. We’ve been happy with the first two, so fingers crossed that continues. I’ve always been able to draw down any credit if it’s got a bit too high and adjust the direct debit, but on the whole I prefer to keep it at a level where we’re paying a consistent amount each month.

We had a bad experience with British Gas, and from work I remember the horrors that were Eon and EDF - the bills were never correct and we spent hours trying to sort the problems out. I’m just hoping we never end up on their books.

Nannashirlz I moved from Scottish Power to EDF!! Scottish Power were wanting to increase my DD by a huge amount. Gosh. One provider is as bad as another it seems.

I was with EDF until I moved and now on Scottish power I’m using nearly half on dd than I was with EDF paying the same amount I was paying before and I’m still in credit I’d rather stay in credit until after the winter. EDF were always sending me money back but I’d rather be in the blue than red. But we will see how it goes over the winter 🥶

I transfered to British Gas December last year, gas and electric. They estimate all your bills, calculating by projected costs and only asking for meter readings quarterly. I am in credit by £69.93 yet they have upped my monthly d/d to £268.79 from £230. I will be galloping to Octopus in December who you give a meter reading to every month.

We're with OVO. Neve had any trouble with them. They've recently reduced my payment but not as much as the OP.
I too am in credit as the interest rate is better than any bank. I've never had a problem cashing my credit in either.

Work out how much the electricity you are using costs per month (using last years bills to check your normal usage) then ask for your direct debit to be set at that amount, or do that online if you are able, and then get your excess refunded.

My credit is over £600 but they only take payment every six months so it’s in keeping with heating my 10 roomed home. They showed they had it near spot on last year… I pay £182 per month gas/elec…. my water bill has been £33 per month forever but my husband went into care home 14 months ago …and I was just about to complain that the bill should be much lower as I’m single occupancy ( …as is my son ….and his bill is £20….and I got a letter saying it’s bro g lowered to £8 per month ….way too low in my opinion ….but I’ll ‘wait and see’

I am with EON, all electric so use much less during summer. They refuse to lower the DD. So I was £600 in credit. In spite of many phone calls and emails it took me six weeks to get a refund.

I pay my energy bills with British Gas via a Flexible Direct Debit. They send me a ‘bill’ once a month for what I’ve used that month, and two weeks later they take that amount out of my bank via direct debit. This means I only pay for what I use each month - no building up credit in their bank account, but I don’t have to think about paying the bill myself, as it comes out automatically. I started on this system after a huge row with BG; I’d built up £900 credit with them yet they still wanted to double my monthly DD! I told them to stuff it; got my £900 back and put it in a bank account of my own. During the summer, when bills are low, I’ve been adding to this account in preparation for winter … and gaining a bit of interest to boot!

We claim back, in May, the credit we have built up over the winter months. Usually around £200. We carry on paying the same amount, unless costs rise or fall, and build up credit again for the winter months. This ensures we can keep warm all winter without worrying.
You can pay the greatly reduced amount but put the balance of what you have been paying into a savings account and accrue a little interest. Then if the payments go back up you won't suddenly worry about finding the extra as you will have continued to pay the higher amount in total, albeit some into savings. Win win for you.
Hope this helps.

I am with octopus and find them very good. I send a monthly reading online. I had built up too much credit and asked for a refund which I promptly got. I decide how much my direct debit and and reduced it online from £230 to £180. I’ve been with a few different companies over the years but I like Octopus because I am in control.

I would be asking for my overpayment to be put back into my account. And just leave the monthly payment as it is and if you begin to use more you can pay more.
These companies must have millions in overpayments and no doubt they are getting interest in it somewhere. They are using people as free lenders and paying them zero interest.

Yes, we have a reduction of £40 per month. Very welcome

With Octupus you can change th amount of your direct debit and the date you pay on-line. No reason why you should be passive in complying to energy companies desires.

PaperMonster

Dickens they aren’t allowed to profit from the credit on your account, so they won’t be earning interest on it.

Ofgem’s rules do not limit the amount of credit suppliers can hold or what they can and cannot do with the money.

... and see Caravansera's comment.

I think they are earning interest on it!

Caravansera

25Avalon

I have no problems with Ovo (touch wood) and they pay 5% interest on my balance so I don’t mind paying more each month. It’s better than the bank.

Only for customers who signed up for an eligible tariff before 27 September 2021. Ofgem put a stop to it.

That’s interesting Caravansea. I’m lucky then.