OVO "You're moving to a monthly Direct Debit"

Den249

I pay my combined gas / electricity by quarterly DD.  I've never had any problem making these payments.  Now I'm being told (not asked) that I have to pay monthly DD in advance.  No choice except "Change Supplier".  This is supposedly to help me budget (I don't need help).  In fact this is because they've "updated their technology" and they want to take my money in advance of usage to stuff their bank account, to their advantage and my detriment. 

I have a smart meter, am very energy efficient and am quite capable of building a surplus to pay for the expensive winter quarter in my bank account.

On their last bill (September) they projected my bills for combined gas / electricity usage will be £722.45 over the next year but have set my DD at £74 per month, totalling £888.

Don't they make enough profit already?  They know that changing suppliers at the moment is difficult and that with the lack of real competition I'd probably end up with worse deal and probably that as a condition of opening a new account I'd again be faced with DD in advance payment only again.

wild666

Just tell them you still want to pay the bills quarterly. If the refuse put in a complaint.

Peter999_2

I don't see a problem myself.   I don't think £74 is excessive and if you are more than 3 months in credit they allow you to withdraw it online without speaking to anyone (takes a few seconds). They even pay you interest on any credit balance you have.

I've been with Ovo a few years and not really had a problem.   They constantly put my direct debit up every few months, I get into credit, they allow me to lower my direct debit online and I withdraw any credit above 3 months worth.    The problem they have is that if they let people not have any credit in the winter months and suddenly they are in a lot of debt people come on this forum and moan like mad to say it's not their fault and they can't afford to pay the bills off.           Whatever Ovo do, people complain so they are in between a rock and a hard place.

Neil_Jones

You do realise the profit margins of most energy companies for reselling gas and electricity in the UK (as suppliers) is just 2%?

https://www.ofgem.gov.uk/publications/ofgem-confirms-changes-price-cap-methodology-and-frequency-ahead-new-rate-be-announced-later-month

The "profits" are from other activities outside of being energy suppliers.

https://www.costadvice.co.uk/latest-news/whilst-the-media-are-reporting-record-profits-for-energy-companies-it-is-important-to-know-the-difference-between-producers-and-retailers-suppliers

MattMattMattUK

Den249 said:

I pay my combined gas / electricity by quarterly DD.  I've never had any problem making these payments.  Now I'm being told (not asked) that I have to pay monthly DD in advance.  No choice except "Change Supplier".  This is supposedly to help me budget (I don't need help).  In fact this is because they've "updated their technology" and they want to take my money in advance of usage to stuff their bank account, to their advantage and my detriment. 

I have a smart meter, am very energy efficient and am quite capable of building a surplus to pay for the expensive winter quarter in my bank account.

On their last bill (September) they projected my bills for combined gas / electricity usage will be £722.45 over the next year but have set my DD at £74 per month, totalling £888.

Don't they make enough profit already?  They know that changing suppliers at the moment is difficult and that with the lack of real competition I'd probably end up with worse deal and probably that as a condition of opening a new account I'd again be faced with DD in advance payment only again.

Some of this is to reduce their risk of bad debt and to also reduce the size of that bad debt should it occur, they are likely to make a few fractions of a penny at most over a year on any potential credit on your account of one month's Direct Debit total. On thr flip side why should they let you pay them up to tree months after you have used the energy, why should they fund you?

In response to "Don't they make enough profit already", they are not doing this to make more profit, but to note that under EPG/Price Cap system they are allowed to make a maximum of 2% profit and for most of the last eighteen months they have been losing money as Ofgem forced them to sell below cost.

Kat78MFW

Ovo offer interest of at least 3% on credit balances so you're not even losing out on interest by building up a credit balance with them over the summer. 

rp1974

You answered your own question OP,change supplier if what OVO are proposing doesn't suit your requirements.
Unless your on a good fix the prices are broadly similar across suppliers so you are unlikely to be much worse off if you find a supplier that will take you on,the options there if you so choose.

My view is that payment in advance and monthly billing should be the standard,not quarterly,six monthly,in arrears etc as that's just hiding any potential problems for the period in question rather than flagging things up immediately,obviously that wont suit everybody and their needs,but then I generally dont take umbrage over minor issues that make little difference in the whole scheme of things.

Qyburn

Kat78MFW said:

Ovo offer interest of at least 3% on credit balances so you're not even losing out on interest by building up a credit balance with them over the summer. 

Better than most savings accounts.

ariarnia

rp1974 said:

You answered your own question OP,change supplier if what OVO are proposing doesn't suit your requirements.
Unless your on a good fix the prices are broadly similar across suppliers so you are unlikely to be much worse off if you find a supplier that will take you on,the options there if you so choose.

this exactly. they offer all of the payment methods that they are required to offer by ofgem. any other methods they choose to offer or not offer are up to them. if the majority of there customers pay by dd annually then they are under no obligation to provide any other payment method that will increase their admin cost for a minority of customers who want something different. there are some energy companies who still offer the way you want to pay and you are free to move to one of those companies (assuming they want your business). just the same as accepting cheques or card only payment. businesses can choose their customers and customers can choose their businesses. 

[Deleted User]

wild666 said:

Just tell them you still want to pay the bills quarterly. If the refuse put in a complaint.

A complaint on what grounds?  They don't have to let you pay by whatever method you decide, there are a specific set that they must offer.

Den249

ariarnia said:

rp1974 said:

You answered your own question OP,change supplier if what OVO are proposing doesn't suit your requirements.
Unless your on a good fix the prices are broadly similar across suppliers so you are unlikely to be much worse off if you find a supplier that will take you on,the options there if you so choose.

this exactly. they offer all of the payment methods that they are required to offer by ofgem. any other methods they choose to offer or not offer are up to them. if the majority of there customers pay by dd annually then they are under no obligation to provide any other payment method that will increase their admin cost for a minority of customers who want something different. there are some energy companies who still offer the way you want to pay and you are free to move to one of those companies (assuming they want your business). just the same as accepting cheques or card only payment. businesses can choose their customers and customers can choose their businesses. 

Thanks for informing me that Ofgem does require suppliers to offer more than one payment option, something OVO certainly hasn't mentioned.  Where can I find which payment methods are required by Ofgem, please?  The way OVO puts it, I have two options: Do as I'm told or Find another supplier.  Which as you imply above might be problematic at this time.

"Businesses can choose their customers and customers can choose their businesses"
Can they?
Businesses can apparently move their goal posts whenever they want and with little notice.  They're also clever enough to co-ordinate these changes with their "competitors", leaving customers with little or no real choice.  Yes, I'm sure I can find exactly what I want, but only if I pay (heavily) for exercising any form of choice.  The reality is with energy dominated by so few corporate players there is no real competition of any benefit to customers.  Whichever "choice" the customer makes they end up paying almost the same and having to accept whatever conditions the companies decide to impose. 

The clue is in my title as quoted from OVO's curt letter "You're moving to a monthly DD".  Is there any hint of choice?  It is what it is an order.