Ovo direct debit manipulation

CRISPIANNE3

Consumerist wrote: »

.

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).

They will agree anything to keep you and then WOW they increase the direct debit. Nice one!

Wywth

backfoot wrote: »

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

It does

But as neither you nor I have the OP's contract in front of us, then pointing them to where they can find the information on the suppliers website is all I can do.

Wywth

CRISPIANNE3 wrote: »

They will agree anything to keep you and then WOW they increase the direct debit. Nice one!

I was with Ovo for a year and they never changed my DD payment.

I started in the summer so had time to build up a bit of credit first and so never got into debt over winter ... and of course I was honest and realistic when applying so that the DD could be set at the correct level in the first place.

I don't think they actually told me the DD amount until AFTER I had signed up.

Consumerist

Wywth wrote: »

. . . But as neither you nor I have the OP's contract in front of us, then pointing them to where they can find the information on the suppliers website is all I can do.

Ovo's standard Ts&Cs can be found <here>.

• We work out your Direct Debit by taking the amount of energy we assume you will use in the year and dividing this by 12 to get your monthly amount.

• If you join us in the winter months, your Direct Debit will initially be 25% higher than if you switched to us in the summer. This is to cover the increased amount of energy you use over the colder months. We’ll review your payment in the spring.

I can't find any reference in the Ts&Cs to staying in credit.

Consumerist

CRISPIANNE3 wrote: »

They will agree anything to keep you and then WOW they increase the direct debit. Nice one!

Not quite.

They agreed to my suggested DD after I had renewed.

Wywth

Consumerist wrote: »

Ovo's standard Ts&Cs can be found <here>.
I can't find any reference in the Ts&Cs to staying in credit.

Keep looking, it's definitely on their website
(it's not mandatory, but what they aim for)
It's why they increase your payments by 25% initially if you join in winter


Edit: here you go
term 6.4 hints at it, but it is better explained here:
http://www.ovoenergy.com/wp-content/uploads/2011/06/Understanding_the_link_between_your_Direct_Debit_and_energy_consumption.pdf
(top of page 2)

or in their FAQ's here:
http://www.ovoenergy.com/help-centre/#faq101h

When joining Ovo, we typically take the total estimated cost you will spend for your energy over the year and divide it into 12 equal payments. This lets you budget for your energy costs and builds credit through the summer months when you use less energy to offset the higher costs you’ll pay to cover your extra winter usage.
If you’ve joined us coming into winter, you will not have had opportunity to build enough credit on your account to cover your usage over the colder months. During winter you’re likely to use up to 25% more energy than you do in summer. Instead of falling behind and having to pay more in the spring to cover your additional usage, we’ll increase your Direct Debit by 25%. This does not mean your prices have changed. Being on a fixed deal means the price you pay per unit and your standing charge remain the same for the duration of your contract.
Once we are through the winter period if you would like to reduce your Direct Debit please just give us a call, alternatively we review Direct Debits every 6 months so it will be automatically reviewed and adjusted then.

Consumerist

Wywth wrote: »

Keep looking, it's definitely on their website (it's not mandatory, but what they aim for)
It's why they increase your payments by 25% initially if you join in winter

It used to be mandatory (in the Ts&Cs) but it seems they have recently removed the requirement.

I think someone must have complained and they really are keen to avoid formal complaints to the regulator. Bad PR, I guess.

backfoot

Wywth wrote: »

Keep looking, it's definitely on their website
(it's not mandatory, but what they aim for)
It's why they increase your payments by 25% initially if you join in winter


Edit: here you go
term 6.4 hints at it, but it is better explained here:
http://www.ovoenergy.com/wp-content/uploads/2011/06/Understanding_the_link_between_your_Direct_Debit_and_energy_consumption.pdf
(top of page 2)

or in their FAQ's here:
http://www.ovoenergy.com/help-centre/#faq101h

Well hardly even hints at it ....:rotfl:

A policy to be avoided for those on tight budgets. As the original poster says ' Direct Debit Manipulation'. Usually it's too late.

OVO moving towards the Big 6. May as well get taken over.;)

Consumerist

Wywth wrote: »

Edit: here you go
term 6.4 hints at it, but it is better explained here:
http://www.ovoenergy.com/wp-content/uploads/2011/06/Understanding_the_link_between_your_Direct_Debit_and_energy_consumption.pdf
(top of page 2) . . .

"During winter you’re likely to use up to 25% more energy than you do in summer. Instead of falling behind and having to pay more in the spring to cover your additional usage, we’ll increase your Direct Debit by 25%"

This, of course, is the sort of abject nonsense the energy suppliers use to confuse their customers.

Just because you use more energy in the winter doesn't mean you are "falling behind" in spring (unless consumption has increased). The DD was designed to pay for your energy consumption over a full year so, unless your consumption has increased, changing the DD mid-term is nothing short of manipulation being justified only by illogical thinking.

Wywth

backfoot wrote: »

...
OVO moving towards the Big 6. May as well get taken over.;)

Yeah, then we will all have to pay the additional 11% for government schemes including environmental & social schemes just like all big 6 customers do.

That's certainly what the EDF boss wanted to see - a level paying field where he could compete with the smaller suppliers that are not currently lumbered with these charges.

What big 6 supplier gives their customers 3.15% pa tax free interest paid monthly on accrued credit?