Octopus Energy had carried out an update on the way it deals with bills
Octopus Energy has made a major change to the way it deals with the accounts of 5.5 million customers. The firm says the move will be fairer and easier for people.
Under the change customers are now able to receive their account credit refunds quicker than ever before, thanks to a new partnership with fintech firm GoCardless. Octopus has successfully carried out one of the largest Direct Debit migrations in UK history, shifting 5.5 million accounts and £12 billion worth of payments over to GoCardless, enabling faster self-refunds for customers.
Refunds that previously took up to five working days can now be processed and land in customers’ bank accounts within just one or two days, making Octopus faster than any other major energy supplier. The most efficient way to request a refund is via the Octopus app. According to Octopus, if a customer requests a ‘refund’ on a Monday, they will typically see the money back in their bank account by Wednesday lunchtime.
Approximately 70% of refunds are already processed this way, with around 30,000 being handled each week. For those customers who prefer human interaction when processing their refund, they can contact Octopus directly via phone or email, reports the Daily Record.
The transition to GoCardless, a trusted UK fintech company used by thousands of businesses, ensures transactions run smoothly behind the scenes, reducing delays and repetitive administrative tasks. Octopus states that this move allows their teams to dedicate more time to assisting customers where it truly counts.
Octopus became the pioneering major supplier to allow customers to reclaim their credit straight through their online account or mobile app. Customers can access their credit at any time – although many opt to maintain a cushion for winter when consumption increases.
Greg Jackson, Founder and CEO of Octopus Energy, said: “Moving £12 billion of payments with zero disruption is a huge technical achievement. It’s another step in using technology to make energy fairer and faster for customers.”
Hiroki Takeuchi, co-founder and CEO of GoCardless, said: “We’re proud to power payments for Octopus Energy – a company that, like us, uses technology to make life simpler. This shows what’s possible when two tech-driven companies collaborate for good.”
Octopus also pioneered the creation of a bespoke Direct Debit facility. The Balance Forecaster, accessible within customers’ Octopus accounts, displays precisely how their payments and consumption balance throughout the year. Should their balance become overly healthy, a simple tap on the app returns it directly to their bank account.
Octopus Energy has also pledged to deliver Autumn Budget savings directly to its customers, with bill reductions coming into force from April 1, 2026. The company positioned this move as fundamental to its ambition of establishing a more equitable and cost-effective energy market, whilst encouraging rivals to adopt similar measures.
The changes include eliminating ‘legacy costs’ and environmental charges that have historically inflated electricity prices. Industry experts forecast that households could pocket an average of £134 thanks to these policy shifts alone, with backing from several of the country’s biggest energy providers. These modifications are embedded within broader overhauls set out in the UK Government’s Autumn Budget.
Greg Jackson said: “Octopus has long called for cuts in policy costs to help bring bills down, so we are delighted to see the government taking action. These changes will bring a welcome relief to customers, and we’ll pass them through on all of our tariffs as soon as they kick in, so no one misses out. Octopus customers can rest easy – we’ll do it all automatically. We hope other suppliers will follow our lead so everyone can benefit.”
British Gas has likewise pledged to transfer the energy cost reductions to all customers on fixed deals from April 1.