SSE (OVO) – End or Variable Direct Debit?

Bill568

Since moving in in 2005 I’ve paid SSE (now OVO) quarterly bills via a direct debit. I have just received the below e-mail “You’re moving to monthly fixed direct debit”. They state, “If for any reason you're not happy with your new payment plan, you're free to switch to a different supplier.” Is this the end of variable direct debits? From Ovo? From the market?

The suggested direct debit of £48.00 per month is based on my long established actual usage. Over the next 6 months, the proposal is I pay 6 x £48.00 = £288.00. However, the Energy Bills Support Scheme over the next 6 months will provide a credit amount to £400.00. After 6 months if SSE (OVO) take nothing, I would be in credit by £112.00. If they take £48.00 per month I would be in credit by £400.00.

I would like to go back to them with Mens Rea (intent to commit a crime). Any other more practical suggestions?

You're moving to a monthly Direct Debit 

Dear “ME”,

We're always working to make things simpler for our customers. Most of our customers who have a Direct Debit pay a set monthly amount. It makes it easier for them to spread their energy costs over the year. In the future, we'll only offer set monthly Direct Debits, so you'll be moving to this kind of payment.

This won't affect your prices - if you get better rates for paying by Direct Debit, you'll keep them.1

Why's this changing? 

The energy industry has seen lots of change over the last few years. We've had to change as well, to keep giving the best service possible. We're updating our technology, and we've had to make choices about what best suits our customers' needs today. This kind of payment plan lets you know in advance what you'll be paying,and avoids having to cover large winter bills all in one go.

How your payments will change 

We've worked out how much you'll need to pay each month. It's based on your current plan and how much energy you usually use over a year.

Your new payment plan is:

Electricity £48.00 each month2

With your new set monthly Direct Debit

You spread the cost of your energy over the year

We'll regularly check your payments are right for how much energy you're using  

You keep your better rates for paying by Direct Debit1

What happens next

In the next two weeks, we'll write again to let you know when your new monthly payments will start. We'll be sure to give you plenty of notice. If for any reason you're not happy with your new payment plan, you're free to switch to a different supplier.

You don't need to do anything - we'll sort it all out with your bank. After the change, it's easy to update the amount or date of your Direct Debit if you need to through your online account.

There's useful information at the end of this email. Or you can head to our help centre if you need anything else.

Thanks,

The SSE Energy Services team,

part of the OVO Family

[Deleted User]

You might find that the suggested £48 is not including the £400 rebate and that is being dealt with separately.  That is the case with most recent supplier DD estimates.

Other suppliers still offer variable direct debit, but quarterly variable is much rarer.

Any particular reason that you are so enraged by the prospect of the change?

ariarnia

what crime? 

i think ovo are taking the approach of taking the dd then refunding the rebate to your account (so they'd take 48 then send you 48 back and put 18 in your energy account as credit). if you're right and you use less than 48 anyway you can ask for a credit refund at the end of winter if you want to. could be that variable dd messes up the rebate system as they won't know how much to refund until after you have paid and it would be different each month. 

Bill568

Deleted_User said:

Any particular reason that you are so enraged by the prospect of the change?

I'm old and I'm grumpy. I like things the way they have always been. Fundamentally credit where credit is due. I've paid my Electricity bills quarterly in arrears for 40 years. I've billed my customers for 45 years when the job is done. Why should a utility company be allowed to unilaterally change this modus operandi. I don't want to provide a utility company with credit. Look how many have gone bust over recent months!

Bill568

ariarnia said:

what crime? 

i think ovo are taking the approach of taking the dd then refunding the rebate to your account (so they'd take 48 then send you 48 back and put 18 in your energy account as credit). if you're right and you use less than 48 anyway you can ask for a credit refund at the end of winter if you want to. could be that variable dd messes up the rebate system as they won't know how much to refund until after you have paid and it would be different each month. 

I think removing variable direct debit is a bad thing. I'm not confident it will work for me. All things may be equal in the end, but why remove variable direct debit? It's worked OK for a long time? Are other utilities continuing to provide?

[Deleted User]

Bill568 said:

Deleted_User said:

Any particular reason that you are so enraged by the prospect of the change?

I'm old and I'm grumpy. I like things the way they have always been. Fundamentally credit where credit is due. I've paid my Electricity bills quarterly in arrears for 40 years. I've billed my customers for 45 years when the job is done. Why should a utility company be allowed to unilaterally change this modus operandi. I don't want to provide a utility company with credit. Look how many have gone bust over recent months!

You are free to change the terms and conditions of your business at any time you choose.  So are they.

ariarnia

Bill568 said:

Deleted_User said:

Any particular reason that you are so enraged by the prospect of the change?

I'm old and I'm grumpy. I like things the way they have always been. Fundamentally credit where credit is due. I've paid my Electricity bills quarterly in arrears for 40 years. I've billed my customers for 45 years when the job is done. Why should a utility company be allowed to unilaterally change this modus operandi. I don't want to provide a utility company with credit. Look how many have gone bust over recent months!

so no crime then?

you choose to bill your customers at the end of a job. others will want a deposit before starting work or payments on a schedule. you are free to bill as you want and customers are free to choose who to hire.

from your post

They state, “If for any reason you're not happy with your new payment plan, you're free to switch to a different supplier.”

 i think people have said octopus and edf are taking new customers if you phone them (not online) but that might not be until after october 1st given everything that's going on 

Bill568

Deleted_User said:

You are free to change the terms and conditions of your business at any time you choose.  So are they.

I'm a customer. Where do I walk to when I don't want to do business with them, now that they have changed??

Is it so that that the only way to buy electricity now is in advance?

ariarnia

Bill568 said:

Deleted_User said:

You are free to change the terms and conditions of your business at any time you choose.  So are they.

I'm a customer. Where do I walk to when I don't want to do business with them, now that they have changed??

Is it so that that the only way to buy electricity now is in advance?

"i think people have said octopus and edf are taking new customers if you phone them (not online) but that might not be until after october 1st given everything that's going on "

edf call it exact payments https://www.edfenergy.com/for-home/help-centre/faq/i-pay-direct-debit#chapter-23133-3

t0rt0ise

I think what would annoy me is not that they are doing it. I can understand that it's easier and better for them etc but that they lie about the reasons. Saying that they are thinking of helping their customers as if their customers can't manage their own affairs. Oh yuck!

ariarnia

t0rt0ise said:

I think what would annoy me is not that they are doing it. I can understand that it's easier and better for them etc but that they lie about the reasons. Saying that they are thinking of helping their customers as if their customers can't manage their own affairs. Oh yuck!

how are they lying? they say most customers pay by annualised dd. that's probably true. they say most people find it easier to pay this way as it keeps the payments the same all year. that's also probably true. there will be a minority that prefer a different way to pay but ovo (or any business) is not required to cater to everyone's preferences if they don't want to. especially when doing so probably involves more systems and cost than requiring everyone to be on the same system.