Octopus - direct debit on receipt of bill

[Chasingsquirrels]

I'm just in the process of moving to Octopus, and then onto the Outgoing tariff as solar panels shortly to be installed.

I've historically cleared each monthly bill (based on readings, but will have a smart meter fitted) by variable monthly direct debit rather than a set monthly payment.

Is this an ption with Octopus? I can't see anything on their site, but don't know if I'm searching the right wording.

Yes I think that is their default. I had to ask to go onto a fixed DD that averages out over the year (which I prefer).

I seem to be signed upto a set monthly direct debit, not variable.

It's not their default, we were moved to Octopus when our old supplier went bust and we went onto fixed DD, which I also prefer.

I've found them to be very fair with direct debits, there's a predictor tool that you can use to see how your balance is expected to vary over time to take into account seasonal variations and if the account credit is above where they think it should be, you can just withdraw the excess with one click.

If you want variable direct debit, you could call and ask if they are able to do that.

Yes it is, we had that with Bulb and then when we moved over to Octopus it's the same. So my bill was generated on the 24th and they take my direct debit on the 11th for only what we have used. I've never understood the in credit thing, I don't pay Tescos extra because I will spend more at Christmas I just want to pay for what I use and that's it.

Well that's fair enough, but many people find it hard to budget when the quarterly bill is £100 in summer and £1000 in winter, so they prefer to pay £200 each month instead.

Tesco might not let you spread your grocery bill evenly the whole year round, but they also won't let you have any food in January if you don't have any money, whereas on fixed monthly DD, you can still use energy then even if your account is in debit. You still 'pay for what you use' either way, it's just that fixed DD is easier to budget for most people.

My bills should be around £325pm. I only pay £250 by fixed DD. It sounds ridiculous to pay under but as a budget nerd I like to eek as much cashback out of every payment I make. So I pay £250 by DD out of Sant 123, they pay 2% cashback on Gas / Electric to a cap of £5pm so it doesn't benefit me to pay more than this on DD. I gain around £5pm in rewards from Zipzero that comes off the bill and the remainder I pay by cashback credit card.

So my convoluted post was that you can under pay by DD then top by card as an option. I think they do offer variable DD but I imagine it's more work so not a preferred option.

It sounds like it is an option then, I'll wait until the account is properly up and running and contact them.

My usage is pretty level year round as it is electricity only and my heating is oil fired.
If anything I use more in summer since I got an inflatable hot tub a few years ago but only use it May-Sep, hopefully the soon to be installed solar will help with that.

Interesting that you can withdraw any excess easily, maybe I'll look at higher payments to maximise Santander cash back and then regularly withdraw!

I joined Octopus last year and pay my variable direct debit each month. I get my bill and they take the exact payment however many days later. I'm not sure they even offered me other options - if they did, I was so uninterested that I've forgotten completely. 😂

Definitely says you can pay monthly for what you have used. Just need to let them know that's the option you have chosen

Very happy with them I said I wanted to pay on the first I do I check online every month anyway. The bill comes out 23rd of each month I’m in credit at the moment.

We do the same with Octobus. Variable direct debit - which is not the same as payment on receipt of bill (which usually adds an additional fee). We submit a meter reading every month, bill is generated and the dd takes that exact amount. We prefer it as never in credit or debit, and like to just know exactly where we are and pay for it as we use it but I totally understand that spreading a dd out over a year is better for a lot of people.

I have exactly what you are looking for, OP.
My account was moved to Octopus from Bulb last autumn ,after they collapsed, along with my fixed DD.
I had a big credit balance, though, which I wanted back as I'm only with them for electricity and I wanted to use it for my heating. They still wanted to hold quite a big balance so, when I disagreed, they suggested I went onto actual monthly DDs. So I got all my balance back and now they take exactly what I owe each month. (I already had a smart meter, and I think they might have said they'd only do it if I had one, but I can't really remember that bit.)
Their customer service people were actually very helpful, and it's working well for me.