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Blocking Debtors from Leaving

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~29% of OEB debt sits in accounts no longer on supply. This closes that gap.

Customers in debt above threshold can be blocked from switching away. Do not disclose full criteria to customers.

10 Objection Criteria, all must apply

  1. Debt >£1,000 over 44 days old
  2. No 'Change of tenancy' flag received in COS flow
  3. No active complaint
  4. No active dispute
  5. Not flagged as deceased
  6. No erroneous transfers
  7. No campaign tag for disconnection started
  8. Not flagged as insolvent
  9. Either: no Direct Debit
  10. Or: Direct Debit with failed payment in last 60 days
Kraken decides at point-in-time. Reducing debt below £1k and re-applying will succeed, so do not advertise this loophole.

What to Tell Customers

Reason: "Outstanding balance of [£x] on your account."

1
Best: Clear full balance, then re-apply to switch.
2
Set up payment plan, switch after balance settled.
3
Reduce debt below £1,000, then re-apply.
4
Exhaust options, refer to credit team / third-party support.

Viewing in Kraken

Events tab: Customer receives email, e.g. FMRS/AUTO-OBJECTED-LOSS

Properties tab: MPAN shows auto-object; CoS Loss shows status. Reason example: DELINQUENT DEBT ABOVE THRESHOLD

Process Flow

Customer tries to switch → Blocked?

  • Not blocked switches away normally
  • Blocked, has DD credit ops outbound dial
  • Blocked, no DD enters debt collection: Dunning → DCA → Field visit → Business credit team → Disconnection

At any point: customer clears balance, can switch if they still want to.

Inability to Pay

Insolvent

Check Companies House. Remove objection if valid insolvency confirmed.

Can't pay

Offer payment plan (up to 12 months), or reduced plan to bring debt below £1k. Signpost to credit team / third parties.

Disconnection Criteria (credit team owned)

  • Debt >£800
  • No DD or repayment plan
  • Octopus is supplier
  • Commercial account
  • No active complaints / disputes
  • No shared supply
  • Accurate balance confirmed

Post-disconnection: still Octopus customer (can't switch). Reconnection fee: £20 to £900. Handle debt case-by-case.

FAQ

Why only >£1,000?
Cost of ops time, future debt risk, disconnection costs (£600+). Initial threshold for learning, may reduce later.
Why not object to customers with a good DD?
Future-proofing. DD should clear the full balance. Limits initial inflow for testing.
What if a complaint comes in after objection?
Log it. Process continues. Remove objection only to terminate contract for losses.
Once a switch is accepted, can it be reversed?
No. Once accepted, switch proceeds even if account status changes later.
Mid-contract + debt, who pays what?
Customer must pay both exit fee and outstanding debt. Security deposit can offset.
Internal use only. Do not name Kraken or internal tools to customers. Updated 16 Sep 2026