OVO advance payments

sealiedog_2

I have just switched to OVO for electricity, and I find that this month I have been charged by OVO AND my old supplier. It seems that most utilities charge in arrears, but OVO charge in advance, so anyone switching will pay 2 bills in the first month. They do let you know when your first payment will take place, but its not made clear anywhere that you are likely to get 2 bills in one month. OK, you will get it back if you switch again, but it seems like a bit of a con to me.

KimYeovil

Pretty much ALL suppliers nowadays expect you to pay in advance if you are on their cheapest tariffs and are paying monthly.

And, anyway, every time you switch, even if you were paying in arrears, you would still face the prospect of extra instalments during the changeover period. You should have accommodated this in your planning.

No con whatsoever.

sealiedog_2

KimYeovil wrote: »

Pretty much ALL suppliers nowadays expect you to pay in advance if you are on their cheapest tariffs and are paying monthly.

And, anyway, every time you switch, even if you were paying in arrears, you would still face the prospect of extra instalments during the changeover period. You should have accommodated this in your planning.

No con whatsoever.

Really? It was OVO who told me most suppliers charge monthly in arrears, perhaps I was misinformed.

Why would you have extra instalments to pay during the changeover period if old and new suppliers both charged a month in arrears?

macman

Surely it depends what date in the month they apply the DD. I am in the process of switching back to BG and was able to chose the exact billing date in the month-not sure if all suppliers offer this?

ozzy12

I've just applied to switch from Atlantic duel fuel to OVO for electricity only. Atlantic charged me in arrears, whereas OVO is charging me in advance. That was a nasty surprise. I expect I'll be billed twice in one month. I suppose if I switch again to a company who charges in arrears I'll get the money back, but if all the utility companies start advance charging, every energy user in the country will permanantly be one month's charge out of pocket. I wonder how many millions that will net the companies? Just another ruse to rip us off, on top of the ever rising gap between energy wholesale and retail prices. I'm also switching to Npower for gas - I'll wait and see if they want payment in advance, too.

Premier_2

ozzy12 wrote: »

...OVO is charging me in advance. That was a nasty surprise. ...

Yeah, it's not like they mention it on their website or anything is it??? :huh:
(Edit: or that this thread was started 18 months ago mentioning this very fact!!!)

Why are my payments taken on the day my supply is taken over?

Our standard procedure is to take our Direct Debit payments in advance so we can attempt to address the issue of energy debt in the UK; by charging our customer’s upfront for the service they are less likely to build up arrears on their account. Energy debt is becoming a real issue, with thousands of consumers unable to move away from their current ‘high tariff’ supplier as they simply cannot afford to pay for the energy that they have already consumed. As a new company we are taking a fresh approach to what we believe is an old method in a stale industry, and that our customers have found paying in advance each month has been great for keeping them on top of their bills each month, rather than being in debt. Plus at Ovo we pay you interest for being in credit, so it’s a win win situation.

http://www.ovoenergy.com/help-centre/#faq-cat1