Octopus Energy Advises Customers to Switch to Monthly Direct Debit and Save £93 Annually

Octopus Energy has issued an important notice to all its customers: switching your payment method to a monthly Direct Debit could save you approximately £93 per year.

The company explains that setting up a steady monthly Direct Debit helps spread payments evenly throughout the year, avoiding the common issue of low summer bills followed by steep winter increases. This method is the most popular way to pay among Octopus customers, as it simplifies budgeting.

A key advantage is that a monthly Direct Debit reduces administrative costs for Octopus Energy. These lower costs translate into a lower unit price for customers, enabling savings of around £93 annually on their variable tariffs.

Personal finance expert Martin Lewis, founder of Money Saving Expert, supports this advice. He states that paying by monthly Direct Debit can save over £100 yearly compared to alternative payment options where customers pay as they receive bills. However, he acknowledges that Direct Debit payments are often based on estimated annual usage, divided into monthly amounts, which can sometimes cause frustration if estimates are incorrect.

Lewis recommends ensuring you have a smart meter or provide regular meter readings to improve Direct Debit accuracy. Customers can also use the Money Saving Expert’s ‘Is Your Direct Debit Fair?’ calculator to check if their payments are reasonable. If payments seem too high, Lewis advises contacting the supplier to request an adjustment.

For those who find standard Direct Debits unsuitable, a variable Direct Debit option is available. While this may mean paying higher amounts in winter and lower in summer, it can offer more flexibility if managed carefully.

In summary, switching to a monthly Direct Debit payment plan with Octopus Energy not only simplifies budgeting but can also lead to significant savings, making it a smart choice for many customers.