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Home›Direct debit›“My energy direct debit is increasing by over £300 a month, right?” – Which? News

“My energy direct debit is increasing by over £300 a month, right?” – Which? News

By Meaghan H. Gonzales
March 7, 2022
20
0

Do you have a problem to solve? Which? is there to help you solve your consumption problems.

Dear who?,

I have been an Octopus customer for about four years, and we had a very affordable fixed rate for our electricity and gas. Late last year we moved into a new house with no gas supply, so everything is electric.

We have only submitted two meter readings since we moved in and Octopus has reviewed our monthly payments. Raising them from £39.44 to £333.16.

We are only two in the house, it is extraordinary that we could pay so much. I am now really worried about the price caps rising in April and October – it will be impossible to maintain this kind of amount per month.

What can I do?

Alan, Northamptonshire


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Put to rights

Adam French, which one? A consumer rights expert says…

Electricity is more expensive per unit than gas, so I would be prepared for your bills to go up, but the amount you were quoted seems very high.

At the time of writing, none of Octopus’ current flat rates exceed £250 per month, which is for the most in-demand uses.

When we contacted Octopus they told us that due to an unusual meter error they were only charging you for the gas you were using, not the electricity. This meant that, on average, your direct debit was less than half of what it was supposed to be.

The error only appeared when you moved and submitted your final readings.

An Octopus spokesperson said: ‘We made sure we didn’t charge for the electricity he used in his old house but didn’t pay from 2019 to 2021.

“One of our operations managers explained this to him and suggested that he always contact us if he is not paying as much as he expected.

“We are now getting accurate readings of his electricity usage and have given him tips on how to check that his appliances are not wasting energy unnecessarily.

“We are also in the process of installing a smart meter to help him better understand his consumption and keep an eye on his bills in the coming months.

Octopus also credited Alan with a goodwill payment and set up a more manageable monthly payment plan.

must know

  • If your direct debit isn’t working for you, question it. The rate cap on default and variable rates increases by 54% on April 1. If your domiciliation increases more than that, ask your energy supplier.
  • Chargeback principle. The Ofgem rules mean that energy suppliers cannot charge you for energy consumption from more than 12 months ago, if the supplier themselves are at fault for not billing the household correctly. This is called the chargeback principle.
  • Financial support is available. Consult your utility company’s code of practice for its policy on assisting customers in difficulty. Check the Help or FAQ section of their website, or call the company. Many of the larger energy companies have independent charitable trusts to provide grants to certain customers to help pay fuel arrears.
  • Octopus customers can contact him at [email protected] if they are worried about their bills or to discuss hardship funds and other assistance.

Get in touch

If you have a consumer rights issue that you need to resolve, email us at [email protected]

Please note that we cannot assist you or respond to all emails we receive. The inbox is monitored periodically during business hours, Monday through Friday, 9 a.m. to 5 p.m.

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