Ovo direct debit payments

jm210640

We are both in our 70s and live on just a State pension so we tend to be very careful how we use our fuel each month to save costs. Our monthly direct debit with OVO is set at £64 per month and we are in credit paying that sum. Early December we received latest statement for November use which stated based on current usage we would still be covering bills with the £64 per month. Last week we received an email from them stating they intended putting direct debit up to £97 per month. Have emailed twice asking WHY? but received no answer just confirmation of direct debit increase so we have now started proceedings to change supplier.

unsure

Hi, we recently changed to OVO and did note in their conditions that DD payments are seasonally adjusted so that they go up in winter when you use most fuel and come down in summer when you use less. They also pay interest on any surplus in your account ( I believe the only power co to do so?) which gives them an incentive to get your bills and dd right. For us that was a real positive after having to claim money back from npower almost every year and having to argue with them to prevent dd increases each year even when we'd been in surplus (...or when they wanted to use the coldest winter in 40 years as the baseline for future usage!).
I guess if you want the certainty that your payment will be the same each month OVO may not be for you, but if you want your payments to reflect actual usage it could be the way to go.

jm210640

Hi
The £64 per month more than covered a full years fuel, in fact at the end of the 12 month period ( September )when direct debit was reviewed they left it at £64 for coming 12 months. This was an out of the blue increase of £33 per month without a reason and we are still in credit with them now.

jalexa

jm210640 wrote: »

This was an out of the blue increase of £33 per month without a reason

This is a very common issue you may not escape by a knee jerk switch to another supplier.

You are entitled to ask for a detailed explanation of the calculation. Some suppliers reps here have confirmed this will be provided on request and the Energy Ombudsman is reported as *requiring* a supplier to fulfill such a request.

You are entitled to raise a Complaint with your supplier on the first occasion you are not 100% satisfied with a customer service outcome. Up to you how you fight this but rely more on contesting the projection assumptions rather than any "account balance" which is not an easy seasonal calculation.

Can you explain why you think September is the end of your 12 month period when the OVO procedure available online specifies 'spring alignment'?

jm210640

Hi
OVO sent email in September saying the they had carried out the annual review of our direct debit and monthly sum would remain at £64. early December they stated " Assuming your usage stays the same and you are on
the same tariff for the coming year your annual spend
will be £774.03*.
This has been based on your current tariff prices."
£774.03 split by 12 = £64.50 just 50p per month more than we are paying. Could well understand an increase of say £5 per month but £33 extra is over the top.
Anyway thank you for above information it could well help get a reason for such an increase,

Hasbeen

End of October OVO announced forthcoming price rises.
DD went up to cover the increase

jm210640

Price increase was 50%? I think not.

Fairzo

jm210640 wrote: »

Hi
OVO sent email in September saying the they had carried out the annual review of our direct debit and monthly sum would remain at £64. early December they stated " Assuming your usage stays the same and you are on
the same tariff for the coming year your annual spend
will be £774.03*.
This has been based on your current tariff prices."
£774.03 split by 12 = £64.50 just 50p per month more than we are paying. Could well understand an increase of say £5 per month but £33 extra is over the top.
Anyway thank you for above information it could well help get a reason for such an increase,

But Ovo don't do a straight 12 months division, it is winter loaded. So £774 / 12 isn't consistent with the Company's practice to increase payments over the winter period and reduce for summer?

jm210640

Have been an OVO customer for about 3 years and only had direct debit reviews in or about September time. As we are well in credit from our Summer payments and they are wanting a 50% increase for the Winter surely when we were £20-£30 a month in credit during the Summer we should have seen a fall in those months for D/D payments. Way forward for us is to pay in receipt of bills at least we benefit from the cash being in our bank than an energy company's. As OVO do not allow anything but Direct Debit then we have to change suppliers.

jalexa

Fairzo wrote: »

But Ovo don't do a straight 12 months division, it is winter loaded.

Quoting the OVO online description, only in the first year. After that it is 'spring aligned' and there is only the "natural" loading from divide by 12.

Mind you the OP describes a September alignment not consistent with the OVO description.

Wywth

jm210640 wrote: »

We are both in our 70s and live on just a State pension so we tend to be very careful how we use our fuel each month to save costs. Our monthly direct debit with OVO is set at £64 per month and we are in credit paying that sum. Early December we received latest statement for November use which stated based on current usage we would still be covering bills with the £64 per month. Last week we received an email from them stating they intended putting direct debit up to £97 per month. Have emailed twice asking WHY? but received no answer just confirmation of direct debit increase so we have now started proceedings to change supplier.

Why didn't you call them?

Switching to a more expensive supplier/tariff is not the best MSE solution.