SSE (OVO) – End or Variable Direct Debit?

pochase

Ovo is one of the few suppliers that does not offer variable direct debit.

Up to now they still have allowed it for the SSE customers, but it seems what they are doing now is removing it also for those.

Interesting is that Ovo had variable direct debit a few years ago, there are still YouTube videos that explain how it works.

Seems for them it did not work, and they have removed the variable direct debit as a payment form. It is not a crime nor can they be forced to accept it, they still cover the payment methods recognised by Ofgem.

Bill568

pochase said:

Seems for them it did not work, and they have removed the variable direct debit as a payment form. It is not a crime nor can they be forced to accept it, they still cover the payment methods recognised by Ofgem.

OK, so it’s not a crime to remove variable direct payments with 2 weeks notice. Even though the immediate (calculated) result of doing so will be me providing credit to SSE (OVO).

If I could move supplier now, I think there is a significant risk that the Energy Bill Support Scheme rebate would somehow be compromised. It might be that a move to an alternative supplier is currently difficult, just to ensure the rebate scheme can be effectively managed. What better time for SSE (OVO) to change their terms when practically I have no option but to accept them.

The Ofgem guidance I have is their letter (below) dated 26th June 2014 which states “Ofgem confirms that SLC 27.1 requires licensees to offer a credit payment option that includes cash payment following receipt of a bill for gas and/or electricity already consumed”. Has Ofgem changed this?

[Deleted User]

Nope, you can pay cash on receipt of bill, there's nothing wrong with that.  Same goes for cheque or standing order as they are equivalent.  It doesn't say you have to be able to pay by direct debit on receipt of bill though.

And, of course, if you stop paying by DD and move to standard credit (as that letter says they must offer) then different unit rates and standing charges will likely apply.

MWT

Bill568 said:

The Ofgem guidance I have is their letter (below) dated 26th June 2014 which states “Ofgem confirms that SLC 27.1 requires licensees to offer a credit payment option that includes cash payment following receipt of a bill for gas and/or electricity already consumed”. Has Ofgem changed this?

No, but that isn't what you are asking for.

Cash payment following receipt of bill is a standard credit account for which the supplier is allowed to charge a higher rate for providing. You would have to manually pay them on receipt of your bill each month...

You want variable direct debit, which they are not obliged to provide as an option.

Bill568

Have I misread their e-mail. It says I accept their direct debit or go elsewhere. It does not say I can move to an alternative tariff. Is this implied?

[Deleted User]

Bill568 said:

Have I misread their e-mail. It says I accept their direct debit or go elsewhere. It does not say I can move to an alternative tariff. Is this implied?

They can't move you automatically from Direct Debit payments to cash payments because it's more expensive, and they're strongly discouraged from suggesting options which are more expensive. 

They can't stop you (because of the licence condition you identified) from changing payment method to cash on receipt of bill.

Alnat1

Give another supplier a ring who will do variable DD. I'm pretty sure they will only do monthly rather than quarterly though. I'd suggest Octopus of EDF as the only ones I know who are accepting new customers now.

The fact that you've done something for 40 years doesn't mean that's how it's always going to be, and it looks like you might have to compromise or accept you'll pay more for being stubbornly set in your ways.

Bill568

Deleted_User said:

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.

Yes. It seems the £48.00 per month is based on actual usage at the current price. £568.40 / 12 = £47.36.


I have also found the below words on SSE Q&A's.

The Energy Bills Support Scheme (EBSS) payment will be passed on directly to our customers from October 2022. Direct Debit customers will receive the £400 as six separate payments over 6 months, directly into their bank accounts between October and March 2023. This means customers will receive £66 in October and November and £67 in December, January, February and March respectively. It won’t be paid to you through reductions in your Direct Debit.

So it seems I am being moved to monthly direct debits in order to facilitate the EBSS payment to me on a monthly basis.

Bill568

Alnat1 said:

The fact that you've done something for 40 years doesn't mean that's how it's always going to be, and it looks like you might have to compromise or accept you'll pay more for being stubbornly set in your ways.

My new direct debit standing charge (wef October) is 44.41p per day incl VAT. SSE(OVO) PAYG standing charge is 49.47p per day. The difference of 5.06p per day x 365 days amounts to £18.47 per year. Standard energy (Per KWh) with direct debit is 34.22p, but reduced to 33.25p for PAYG. The difference 0.97p x my 1,441 KWh per year is £13.98.

The annual cost of fulfilling my stubborn wish to pay quarterly in arrears, rather than monthly up front, is £18.47 - £13.98 = £4.49.

It is interesting to note that for any household that consumes more than 1,905KWh of electricity annually it becomes cheaper to go on to the PAYG tariff and abandon those increasingly misunderstood and unpalatable direct debits. Who knew?

Ms_Chocaholic

I'm with SSE (not yet transferred over to Ovo) and from comms I received from them a few weeks ago the £400 credit will be paid to the account from which the DD comes from, monthly, payments will be made a few days after the DD has been taken.

Therefore it appears your account won't be in credit as the £400 will be back in your account.