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

MWT

Gerry1 said:

However, some companies abused this by increasing the DD amount collected, so that you were always in credit...

I wouldn't say that keeping the account in credit was 'abuse', it is what happens naturally if you start your account at the end of winter and pay 1/12th of the annual usage.

If it is operated correctly then making sure the account stays positive only affects the first annual cycle if you do not change suppliers, and it is a reasonable ask from the suppliers perspective as they have to pay in advance to hedge future prices.

Where it got out of hand had more to do with selling fixed tariffs with no hedging and depending on the DD for working capital to try to fill the hole caused by wholesale spot market price increases. 

Everyone has the choice not to pay by fixed DD though, so if you can tolerate the variable nature of the monthly billing then just pay each month as it comes, it isn't even more expensive to do that with some suppliers...

clairebradshaw

Gerry1 said:

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

The gas heats the water for 45 mins in the morning then for 10 mins in the afternoon

There has been no heating on for 3 weeks gas or electric. I put it on a couple of times as a guest came over.

 I've just phoned OVO because I've just been billed and I've looked at the Charges and Payments on my App. I'm outraged!

2nd Dec to 1Jan
Opening Balance +79.52
Total charges £105.63 out
Debit Debit £81.00 in
Closing Balance +£54.89

2nd Jan - 1st Feb Opening Balance +£54.89
Total charges £102.90 out
Debit Debit £81.00 in
Closing Balance +£32.99

2nd Feb - 1st Mar
Opening Balance +£32.99
Total charges £82.92 out
Card Payment £15.18 <-- this was demanded from me by Collections in a call
Direct Debit £97.00
Current Balance +£62.25

2nd Mar - 30th Mar
Opening Balance +£62.25
Total Charges £65.55 out (heating off 3 weeks ago)
Closing Balance -£3.30

I'm guessing after my next £97 direct debit I will be in credit by £93.70???

Yet I was getting lots of emails Increase dd to £97, 98, 99, 140, 124??? I've always been in credit! The guy couldn't justify this or explain it. He's raised a complaint on my behalf. Why am I here with freezing cold hands and numb toes when I see I'm actually always in credit?? Even in the depths of winter!

Gerry1

MWT said:

Gerry1 said:

However, some companies abused this by increasing the DD amount collected, so that you were always in credit...

Everyone has the choice not to pay by fixed DD though, so if you can tolerate the variable nature of the monthly billing then just pay each month as it comes, it isn't even more expensive to do that with some suppliers...

Unfortunately, many suppliers don't offer Variable Direct Debit. It should be obligatory to offer it.

jbuchanangb

You seem to be managing the account very well. If you are on the Standard Variable Rate, the daily and unit rates will go up from 1 April, but you have a modest credit balance as you start the summer so that should be OK. It will probably increase during the summer ready to be used up next winter. Of course rates are due to go up again in October. Check that your bills are really based on the readings on the smart meter(s).

MWT

Gerry1 said:

MWT said:

Gerry1 said:

However, some companies abused this by increasing the DD amount collected, so that you were always in credit...

Everyone has the choice not to pay by fixed DD though, so if you can tolerate the variable nature of the monthly billing then just pay each month as it comes, it isn't even more expensive to do that with some suppliers...

Unfortunately, many suppliers don't offer Variable Direct Debit. It should be obligatory to offer it.

I suspect most of those have gone now, are there really that many left who do not have it as an option?

I may be misremembering, but I thought it was a requirement once the supplier passed one of the total customer levels, around 50,000 I think...?

Gerry1

MWT said:

Gerry1 said:

MWT said:

Gerry1 said:

However, some companies abused this by increasing the DD amount collected, so that you were always in credit...

Everyone has the choice not to pay by fixed DD though, so if you can tolerate the variable nature of the monthly billing then just pay each month as it comes, it isn't even more expensive to do that with some suppliers...

Unfortunately, many suppliers don't offer Variable Direct Debit. It should be obligatory to offer it.

I suspect most of those have gone now, are there really that many left who do not have it as an option?

I may be misremembering, but I thought it was a requirement once the supplier passed one of the total customer levels, around 50,000 I think...?

Not sure, I was seldom with the Big 6 or whatever, but FMDD was at best only available from around half of the competitive suppliers.

QrizB

clairebradshaw said:

The gas heats the water for 45 mins in the morning then for 10 mins in the afternoon
There has been no heating on for 3 weeks gas or electric. I put it on a couple of times as a guest came over.

2nd Dec to 1Jan Total charges £105.63 out

2nd Jan - 1st Feb Total charges £102.90 out

2nd Feb - 1st Mar Total charges £82.92 out

2nd Mar - 30th Mar Total Charges £65.55 out (heating off 3 weeks ago)

Your monthly charges are coming down, so your energy-saving efforts are working.

Would you be able to share your Estimated Annual Consumption figure from your latest bill or app (if there is one)? We can use that to calculate your likely monthly & annual costs from April.

Why am I here with freezing cold hands and numb toes when I see I'm actually always in credit?? Even in the depths of winter!

You're in credit because you've reduced your heating, if you were heating the house more you wouldn't be in credit. An "average" bill would have been around £100/month until now, increasing to £150/month from April; you're somewhat below that. When you tell us your EAC we can give you an idea of how much below.

secretenergysalesman

I used to work for a big energy company in the business sector.
When an energy company went pop and we took on their customers through he goodness of our hearts, (sarcasm)
We would come into work and have 'double bubble' commission.
Basically every business would be worried they wouldn't have a supplier so we explained that we are taking over and so long as you sign up to a 3 year contract you will still have a supply.

Then we would proceed to put them on the highest price available.

Energy companies are like any business where they can choose what to charge you.

So you have the price they pay for energy against what they want to add on top.
Business or residential its the same.

In my 10 years as an energy salesman I can tell you that energy companies are milking this right now.
In my time we could earn between 50 to 100k a year.

If the price went down we were told to tell customers that the reason their rates are still high is because we purchase Gas 5 years in advance so work form old prices...
Funny how they don't say that now isn't it?
They are selling Gas at inflated prices today which they purchased at cheaper prices a few years ago.....
No one is saying this though, not even Martin.

I could tell you stuff that would make you wince.
Salesman playing God and deciding if a customer got a fair rate based on how they sounded on the phone.
The energy sector is a national disgrace. I know, i was in it for 10 years, they are rubbing their hands together and only want maximum inflated profits with no give or take.
No energy company will be suffering with us on this, in fact they are profiteering off us.

clairebradshaw

QrizB said:

clairebradshaw said:

The gas heats the water for 45 mins in the morning then for 10 mins in the afternoon
There has been no heating on for 3 weeks gas or electric. I put it on a couple of times as a guest came over.

2nd Dec to 1Jan Total charges £105.63 out

2nd Jan - 1st Feb Total charges £102.90 out

2nd Feb - 1st Mar Total charges £82.92 out

2nd Mar - 30th Mar Total Charges £65.55 out (heating off 3 weeks ago)

Your monthly charges are coming down, so your energy-saving efforts are working.

Would you be able to share your Estimated Annual Consumption figure from your latest bill or app (if there is one)? We can use that to calculate your likely monthly & annual costs from April.

Why am I here with freezing cold hands and numb toes when I see I'm actually always in credit?? Even in the depths of winter!

You're in credit because you've reduced your heating, if you were heating the house more you wouldn't be in credit. An "average" bill would have been around £100/month until now, increasing to £150/month from April; you're somewhat below that. When you tell us your EAC we can give you an idea of how much below.

Heya - using the OVO app and as I'm on a smart meter I can see for Electricity so far since Dec 2021 when they took over
Dec 21 - 182.92 kWh

Jan 22 - 176.04 kWh
Feb 22 - 150.92 kWh
Mar 22 - 146.16 kWh
2022 Total - 473.1 kWh 

Gas
Sep 21 (SSE) - 266.16 kWh
Oct 21 (SSE) - 643.44 kWh
Nov 21 (SSE/OVO?) - 1109.99 kWh
Dec 21 (OVO) - 1193.27 kWh
Total 2021 - 3212.9 kWh

Jan 22 (OVO) - 1209.32 kWh
Feb 22 (OVO) - 912.52 kWh
Mar 22 (OVO - heating off most of the last 3 weeks) - 589.74 kWh

I am going to stretch this lack of gas usage as much as I can to November and beyond. Last night I ran the heating a bit but switched off all of the room radiators except the one next me in the lounge and set the thermostat to 18C (The house was around 13C when the thermostat clicked when I turned it on).

It seems this is the only way to beat these crazy price increases. Increasing the cap is just an invitation to say Energy companies do you want to make more profit for your shareholders? It happened with the Universities when the Gov said to them oh btw you can charge up to £9000 a year if you want now - what business is going to say Oh that's ok we will charge less. The problem with this is that this isn't temporary to cover issues going on now - the energy firms will make this permanent. 

QrizB

Thanks for the extra data.

• For electricity, let's say you're using 150kWh/month. Over a year that's 1800kWh.
• Gas is a bit more variable but let's say 1000kWh/month for four months, 600kWh/month for four months and 300kWh/month for four months. That makes 7600kWh/yr.

From April (tomorrow) that will cost about £1335/yr, or an average of £111/month. Thart's the sort of number I would expect OVO to set your DD at.