Ovo Energy Direct Debits

getoffgrid

On price comparison Ovo came second to First Utility for cost saving over dual fuel with BG, which I pay quarterly on receipt of bill. Reviews on First Utility do not encourage me to switch to them. Ovo want DD payment, and I'm a bit reluctant in case the DD amount goes up. Our usage of both gas and elect is lower than average. I'd be saving £130 pa which I'd rather not give to BG. Is there anyone with recent experience of Ovo who can allay my concerns?

System

I have been an OvoEnergy customer since April. I am not sure why you are concerned. As the link below shows, Ovo has two types of DD: flexible and standard. I am on the Standard DD Scheme but Ovo, like all energy providers, reserves the right to change the DD amount if usage is different from that projected. When your account is in credit, they will pay you 3% interest. You get a monthly e-mail statement (for accuracy, you would be well advised to let them have accurate meter readings the day before. You can do this on your MyOvo webpage or via a smartphone app).

http://www.ovoenergy.com/coreterms2014/

If I were you, I would consider doing the following: a. Give Ovo slightly higher projected annual usage figures than you believe that you will use. This will 'buffer' you from the occasional cold snap and you will be getting interest on the credit that you have accumulated; (b) if Ovo reduces the DD, then put the difference in a contingency pot in your monthly budget and (c) if we have a really cold winter then make a 'one-off' credit to your account to maintain your current level of monthly payment.

Sadly, as we all know, projected and real usage may differ significantly depending on the weather. It follows that if we use more energy than was projected then we will have to pay more for it. Provided that you monitor your usage and make sure that Ovo is taking money each month, there shouldn't be any shocks. Finally, just one thing to consider. Ovo, if memory serves, will take a DD payment when your first fuel is switched - so your account will immediately be in credit. They do this for commercial purposes but it is probably no bad thing for someone with your concerns. I pay them £71 per month, and 4 months on I am £148 in credit.

jamesperrett

You pay in advance with Ovo and they're not particularly quick at refunding you when you leave. I found them rather too keen to increase my DD as well so I ended up £500 in credit by the time I left.

getoffgrid

Thanks both for the replies. Is that one debit payment covering both fuels (and credit/debit reconciled across both fuels) or separate?

System

It is a single DD payment covering both fuels. Your monthly statement will show a breakdown for each fuel with any discounts applied and interest paid. The balance covers both fuels. Think of it as a quarterly statement (issued monthly) with an extra line showing payments received minus amount owed.

macman

Refusing to pay by DD will screen out most, though not all, of the more competitive tariffs.Your choice.
Your DD will rise if your consumption is greater than first estimated, as with any supplier.

[Deleted User]

I spend my day trying to get the old uns stuck in their ways,switching their top of the range Standard Variable ( or British Gas new con "Fix and Fall ") and getting a direct debit going with existing supplier on a year fix tariff. When its spelt out clearly the savings a lot do get on the phone to customer services.

System

getoffgrid - you may have picked up this already. Just in case you haven't then hidden away in the ts and cs is this sentence:

Your Standard Direct Debit payment will be based on the amount of energy we expect you to use for the period of the agreement. However, if you are joining us through the winter months, your Direct Debit will be set at 25% higher to cover the extra usage until spring, when it will return to a Standard Direct Debit.

This is unusual but I suspect that it is down to the fact that Ovo is still a relatively small company. It will protect you to a degree by ensuring that there isn't a big debit balance (debt) building up. Also, as said before, you will get interest on any credit balance that you accumulate with Ovo.