Ovo direct debit manipulation

laurence4fun

Hi,
have any other OVO customers been asked to dis-proportionally increase the size of their monthly direct debits? Are they being asked to build up a credit of 1.9 x their DD to be ready for next winter?
I have and I wonder how many others are being asked to do the same?

brewerdave

OVO are not alone in this behaviour ...if you look at other threads re N.Power/EDF/EON you will find that they are all "playing the game" ...they all expect you to build up a healthy surplus before Winter ..this credit then slowly disappears to give a zero balance around the "Spring", say May time.
This compares with the way DD plans were originally set up whereby your expected annual uage was divided into 12 equal payments regardless of when you started with the Utility Company, so it was possible to be in debt during the Winter and to pay the debt back during the Summer months.
The explanation that was initially given by the power companies (certainly EON) was that they were just obeying a directive from OFGEM /Govnmt. to prevent consumers from getting into debt!!!:rotfl:

laurence4fun

Thanks for your response.
I agree, this is something that the 'Big 6' energy providers have been doing for years, and was one of the principal reasons for switching to OVO.
I have looked again at some of the blurb on their website, and I quote: “With Ovo everything is more straightforward” and ‘We’re open and honest and we do everything we can to keep our prices low’.
I was also impressed that the Company had no ‘preconception of how things are ‘normally’ done. Just a vision on how things ‘should’ be done’.
Shame!

Wywth

Take another look at their website.

It explains exactly how they set their monthly DD's, which unlikew major suppliers, doesn't allow your account to fall into debt at any time of the year ... but pays 3.15%p.a. interest (after VAT) monthly on credit balances.

PollyOnAMission

Yes!

Last year they tried to increase mine to a level I knew was too high, especially because I'd just had a new (more efficient) heating system installed. I contacted them and they agreed to leave it at the lower amount; my account was fine like this.

They've recently incresased it again, this time from £90 to £127 per month. I still think this is too high, and my account is constantly in credit, but I've gone along with it this time.

I keep detailed records of my energy usage. My summer costs average out at about £55 per month, autumn is around £90, winter £120. I expect Spring will be around £80 meaning a rough annual average is about £1035, so £90 per month would be about right.

I started my contract in Spring. Keeping the DD at £90 would have allowed enough credit to be built up to cover the extra during the winter months, although I realise this wouldn't work if contract started in winter. My account is currently about one month's DD in credit and is going to be HUGELY in credit over the summer if they don't reduce it again.

I also find their estimates tend to be way out. Last month I was a couple of days late submitting my readings so they estimated them. Their estimated bill came out at double what it actually should have been; I'd have thought it would make sense to at least base estimates on your previous month's usage but it seems they don't do this.

It would be nice to have a smaller DD, but as they are paying decent interest on my credit balance I'm not overly bothered. I do like how they operate other than these issues and have just renewed with them for another year.

laurence4fun

Exactly what I've experienced PolloOnAMissiom!
I switched my account to OVO in October, and they set the amount of my DD. They must have known, given the time of year, that I was unlikely to build up a credit in time for the winter months.
Now they want to increase my DD by 65%!!
I have monitored my usage carefully, and am confident that the original DD they set is realistic, and by next September when my current contract ends my balance should be zero.

Wywth

laurence4fun wrote: »

Exactly what I've experienced PolloOnAMissiom!
I switched my account to OVO in October, and they set the amount of my DD. They must have known, given the time of year, that I was unlikely to build up a credit in time for the winter months.
Now they want to increase my DD by 65%!!
I have monitored my usage carefully, and am confident that the original DD they set is realistic, and by next September when my current contract ends my balance should be zero.

But as it says on their website, your balance should never be in debit ... hence why they presumably need to raise your payments.

Consumerist

PollyOnAMission wrote: »

. . . Last month I was a couple of days late submitting my readings so they estimated them. Their estimated bill came out at double what it actually should have been; I'd have thought it would make sense to at least base estimates on your previous month's usage but it seems they don't do this. . .

Why not sign up for their <Statements on Demand>? Statements are produced when you submit your readings and are based on those readings.

CRISPIANNE3

laurence4fun wrote: »

Hi,
have any other OVO customers been asked to dis-proportionally increase the size of their monthly direct debits? Are they being asked to build up a credit of 1.9 x their DD to be ready for next winter?
I have and I wonder how many others are being asked to do the same?

Shortly after joining them they were keen to raise my dd and this was in April. It got to the point that after the following winter I had build up a credit of £420. I have left them and get excellent service from Scottish Power.

If I remember Ovo did not like you being in debit. Probably because they are a small company and do not have the financial clout of their majors.

With my present supplier they allow you to go into debit and then in the Summer months to build up a credit to to carry you through the winter period. However I am always in credit.

Consumerist

laurence4fun wrote: »

Exactly what I've experienced PolloOnAMissiom!
I switched my account to OVO in October, and they set the amount of my DD. They must have known, given the time of year, that I was unlikely to build up a credit in time for the winter months.
Now they want to increase my DD by 65%!!
I have monitored my usage carefully, and am confident that the original DD they set is realistic, and by next September when my current contract ends my balance should be zero.

If you can justify a lower DD based on your current tariff, account balance and last year's consumption then email them objecting to the increase and giving your own estimate.

Since you haven't been with them for a year, they may not have accurate consumption details for last year so you should offer to provide evidence of your past year's consumption if they require it.

I recently renewed with Ovo and set out my case for the new level of DD and they accepted it without any argument. If history is anything to go by, they will want to review it later in the year, I will object, set out my case and keep the DD as is (unless they can justify any increase).

backfoot

Wywth wrote: »

But as it says on their website, your balance should never be in debit ... hence why they presumably need to raise your payments.

A reference on a website is irrelevant. The Contract should clearly explain the Terms and Conditions you have entered into.