SSE sold me to OVO who then raised prices - heating off

clairebradshaw

Hi everyone - so here is some background:
A) Moved into my 2 bedroom rented semi detached house last Feb on SSE energy. Moved to a smart meter in April. Paying £81 a month for electricity and gas (Was paying Eon £37 a month in my masonette). Living on my own, there is a lower usage of energy.
SSE sells me to OVO, a company I do not wish to be under. Straight away they start raising the direct debit with borderline passive-aggressive emails along the lines of You need to change your direct debit otherwise we will. 
C) OVO changes DD to £97 a month. Then £98 a month in January. I questioned this and the person on the phone made it £99 a month. 
D) OVO then made it £140 a month end of February. I asked why seeing as I was using the same energy and the price cap hadn't happened yet. I asked if I could pay as I go seeing as they had Smart Meter readings. Came off DD and then found the OVO energy costs per unit was higher off DD - was not told this. Went back onto DD at £97. This is terrible business practice as it forces customers to use DD which they directly control the level of.
E) OVO emailed to say DD was now £124. I spoke to the Collections team and ended up speaking to a horrible misogynistic nasty man who wouldn't take no for an answer. Customer Services call reduced it to £97 as they say I'm a low user. 
F) Pretty sick of the way OVO is acting so 3 weeks ago I switched Heating to OFF and Hot water to 45 mins in the AM and 10 mins in the PM. The Smart Meter app shows a dramatic fall off in Gas usage. I've had to use double duvets, thick blanks in the lounge, hot water bottles, layers of clothing and visit other peoples houses to keep warm. I'm also considering, as I work from home, taking the laptop to the car and running the heat in there for an hour a day. I've had the heating on maybe twice since for an hour or so. 

They can't screw you for prices if you're not using it.   

Gerry1

If you're on the Standard Variable Tariiff (capped) and are concerned that you are building up a credit balance, you could switch to Variable Direct Debit with EDF (but only if you phone them).  It's called Direct Debit Whole Amount (Monthly) so you would only pay for what you had used.

However, be aware that the bills would be lower in summer but higher in winter, and EDF are pretty shambolic in all respects.

clairebradshaw

Gerry1 said:

If you're on the Standard Variable Tariiff (capped) and are concerned that you are building up a credit balance, you could switch to Variable Direct Debit with EDF (but only if you phone them).  It's called Direct Debit Whole Amount (Monthly) so you would only pay for what you had used.

However, be aware that the bills would be lower in summer but higher in winter, and EDF are pretty shambolic in all respects.

I dont understand how the companies justify using exact the same amount DD month in month out. Summer is always 0 heating usage time. I may be on holiday for a month. OVO says we based it on Dec and Jan usage because we dont have anything else when we took over - they have all the Smart Meter data! Some how they seem to think I will be using the same energy in December as June July Aug which in my view is disgusting. 
If you put £50 of petrol into your tank and the petrol company said £100 please because based on your £50 use we think you will use £50 more you will tell them to jog on. You pay for what you use in petrol. For me this is about profiteering during a crisis. They had a name for people like that during WW2. 

Mstty

Must admit years ago when OVO were new this was their practice then or being bullies and nasty.

You could always report them to Ofgem if you fancy it. Not sure it will do anything but you might get some compensation back from OVO for the time, effort and stress they have caused.

You will need to raise a complaint with OVO first and before it gets to the point you can escalate to Ofgem they may well offer you some compensation.

Have a figure in mind you would be happy with it asked. 

molerat

clairebradshaw said:

Gerry1 said:

If you're on the Standard Variable Tariiff (capped) and are concerned that you are building up a credit balance, you could switch to Variable Direct Debit with EDF (but only if you phone them).  It's called Direct Debit Whole Amount (Monthly) so you would only pay for what you had used.

However, be aware that the bills would be lower in summer but higher in winter, and EDF are pretty shambolic in all respects.

I dont understand how the companies justify using exact the same amount DD month in month out. Summer is always 0 heating usage time. I may be on holiday for a month. OVO says we based it on Dec and Jan usage because we dont have anything else when we took over - they have all the Smart Meter data! Some how they seem to think I will be using the same energy in December as June July Aug which in my view is disgusting. 
If you put £50 of petrol into your tank and the petrol company said £100 please because based on your £50 use we think you will use £50 more you will tell them to jog on. You pay for what you use in petrol. For me this is about profiteering during a crisis. They had a name for people like that during WW2. 

It is because it is a budget DD and should be set at 1/12th of you annual spend each month.  It was designed to help people budget and avoid the bill shock of a huge charge in the winter months.  There is nothing intrinsically wrong with this method of charging.  As Gerry1 has mentioned some offer monthly whole of bill by DD, you can ask them if they will do that.

Do you know what your annual consumption is in kWh and can you relate that to what your monthly 1/12th should be at the current and post April rates ?

Gerry1

Originally the idea of Fixed DD was that some of the time you were in credit and some of the time you were in debit, as shown by red line.

However, some companies abused this by increasing the DD amount collected, so that you were always in credit, as shown by the broken blue line.  Some increased the DDs even further so that you were in credit by tens or sometimes even hundreds of pounds.

Predictably, dozy Ofgem did nothing and Ponzi schemes flourished, companies experienced rapid growth but invested little or no capital of their own.  When these companies started to collapse, the SoLR scheme was hastily introduced and customers of all companies had to bale out all the losers, resulting in the massive increases to electricity standing charges that we're now seeing.  This wouldn't have happened to anything like the same extent if Ofgem had made Variable DD the default, with Fixed DD only offered as an opt-in.

clairebradshaw

Gerry1 said:

Originally the idea of Fixed DD was that some of the time you were in credit and some of the time you were in debit, as shown by red line.

However, some companies abused this by increasing the DD amount collected, so that you were always in credit, as shown by the broken blue line.  Some increased the DDs even further so that you were in credit by tens or sometimes even hundreds of pounds.

Predictably, dozy Ofgem did nothing and Ponzi schemes flourished, companies experienced rapid growth but invested little or no capital of their own.  When these companies started to collapse, the SoLR scheme was hastily introduced and customers of all companies had to bale out all the losers, resulting in the massive increases to electricity standing charges that we're now seeing.  This wouldn't have happened to anything like the same extent if Ofgem had made Variable DD the default, with Fixed DD only offered as an opt-in.

Yes this is I believe what OVO are doing - they are ignoring the data they have and have set a Guessed £ amount for the end of the year, based on who knows what. The heating has been off all day again - I'm barely using any electric right now. I have poor foot and hand circulation so they are cold most of the day because this company seems to think it can charge what it likes whenever the heating is on. If they charge the same amount for this last month, I will report them. I feel the energy companies are like a money making scam. They predict the future and charge you for it. They sad I could pay monthly, they would send an email bill and I pay it but the energy charges per unit were higher - so it forces me to use DD. This surely is wrong! No one should be forced to do anything. 

QrizB

clairebradshaw said:

Gerry1 said:

Originally the idea of Fixed DD was that some of the time you were in credit and some of the time you were in debit, as shown by red line.

However, some companies abused this by increasing the DD amount collected, so that you were always in credit, as shown by the broken blue line.  Some increased the DDs even further so that you were in credit by tens or sometimes even hundreds of pounds.

Yes this is I believe what OVO are doing - they are ignoring the data they have and have set a Guessed £ amount for the end of the year, based on who knows what.

How much in credit is your account right now?

If you're in credit by more than a month's payment, contact OVO and ask for a refund of the excess.

Gerry1

clairebradshaw said:

Gerry1 said:

Originally the idea of Fixed DD was that some of the time you were in credit and some of the time you were in debit, as shown by red line.

However, some companies abused this by increasing the DD amount collected, so that you were always in credit, as shown by the broken blue line.  Some increased the DDs even further so that you were in credit by tens or sometimes even hundreds of pounds.

Predictably, dozy Ofgem did nothing and Ponzi schemes flourished, companies experienced rapid growth but invested little or no capital of their own.  When these companies started to collapse, the SoLR scheme was hastily introduced and customers of all companies had to bale out all the losers, resulting in the massive increases to electricity standing charges that we're now seeing.  This wouldn't have happened to anything like the same extent if Ofgem had made Variable DD the default, with Fixed DD only offered as an opt-in.

Yes this is I believe what OVO are doing - they are ignoring the data they have and have set a Guessed £ amount for the end of the year, based on who knows what.

How does their Estimated Annual kWh Usage compare to your Actual Annual kWh Usage?  Unless they're way out of line there's not very much you can do apart from a move to EDF's SVT as mentioned above.

clairebradshaw said:

The heating has been off all day again - I'm barely using any electric right now.

Hope you're not using electricity for room or water heating - it's about four or five times the price of gas.

clairebradshaw said:

Gerry1 said:

Originally the idea of Fixed DD was that some of the time you were in credit and some of the time you were in debit, as shown by red line.

However, some companies abused this by increasing the DD amount collected, so that you were always in credit, as shown by the broken blue line.  Some increased the DDs even further so that you were in credit by tens or sometimes even hundreds of pounds.

Predictably, dozy Ofgem did nothing and Ponzi schemes flourished, companies experienced rapid growth but invested little or no capital of their own.  When these companies started to collapse, the SoLR scheme was hastily introduced and customers of all companies had to bale out all the losers, resulting in the massive increases to electricity standing charges that we're now seeing.  This wouldn't have happened to anything like the same extent if Ofgem had made Variable DD the default, with Fixed DD only offered as an opt-in.

If they charge the same amount for this last month, I will report them.

As above, not likely to be much mileage in that unless their their Estimated Annual kWh Usage is far more than your Actual Annual kWh Usage.

clairebradshaw said:

I have poor foot and hand circulation so they are cold most of the day because this company seems to think it can charge what it likes whenever the heating is on.

Check whether you qualify for their Priority Services Register.  Also claim any benefits to which you may be entitled.

https://www.moneysavingexpert.com/utilities/how-to-get-help-if-you-re-struggling-with-your-energy-bills-/

They can't charge what they like, only the agreed kWh rates and daily charges (i.e. the capped tariff sor the fixed rates to which you signed up).  The DD is merely a top up of a kitty, it's not the bill.

clairebradshaw said:

They said I could pay monthly, they would send an email bill and I pay it but the energy charges per unit were higher - so it forces me to use DD. This surely is wrong! No one should be forced to do anything. 

IIRC Ovo don't offer Direct Debit Whole Amount (Monthly), but EDF do, as explained in my earlier post above.  You'd see lower bills this summer but higher ones in the winter (at the October rates, likely to be eye watering) so it might be of limited benefit.  But EDF's Direct Debit Whole Amount (Monthly) rates aren't higher than their Fixed DD.

Cardew

clairebradshaw said:

Gerry1 said:

Originally the idea of Fixed DD was that some of the time you were in credit and some of the time you were in debit, as shown by red line.

However, some companies abused this by increasing the DD amount collected, so that you were always in credit, as shown by the broken blue line.  Some increased the DDs even further so that you were in credit by tens or sometimes even hundreds of pounds.

Predictably, dozy Ofgem did nothing and Ponzi schemes flourished, companies experienced rapid growth but invested little or no capital of their own.  When these companies started to collapse, the SoLR scheme was hastily introduced and customers of all companies had to bale out all the losers, resulting in the massive increases to electricity standing charges that we're now seeing.  This wouldn't have happened to anything like the same extent if Ofgem had made Variable DD the default, with Fixed DD only offered as an opt-in.

Yes this is I believe what OVO are doing - they are ignoring the data they have and have set a Guessed £ amount for the end of the year, based on who knows what. The heating has been off all day again - I'm barely using any electric right now. I have poor foot and hand circulation so they are cold most of the day because this company seems to think it can charge what it likes whenever the heating is on. If they charge the same amount for this last month, I will report them. I feel the energy companies are like a money making scam. They predict the future and charge you for it. They sad I could pay monthly, they would send an email bill and I pay it but the energy charges per unit were higher - so it forces me to use DD. This surely is wrong! No one should be forced to do anything. 

In order to reduce operating costs, all energy companies use the direct debit method of payment. You are not forced into paying by DD but for customers using other methods of payment the company incurs greater costs. So most of the cheaper tariffs tended to make payment by DD mandatory;* and many made running the account on-line mandatory.

* With the Standard Variable Tariff(SVT) presently being the cheapest tariff for most companies, you need not pay by DD; however most of us elect to do so because it is more convenient.

jbuchanangb

In the end you will only pay for the energy which you use. As explained, the idea of a level monthly payment all year round is that you build up a credit balance during the summer, and deplete it during the winter. I joined SSE 12 months ago for gas and by December I had a £271 credit balance. Two energy bills later, in February it was only £52. You may opt to revert to paying on receipt of bill for a few months, even though the rate's a bit more, until you have a year's worth of evidence about how much you actually use. Then you will be in a strong position to agree a proper monthly DD. Incidentally, because of the increase in energy costs, my monthly DD for gas is just changing from £50 to £95.