Ovo Energy - Inflated Usage prediction figures...

Options
dan0292
dan0292 Posts: 28 Forumite
First Anniversary First Post
Hi everyone, 
If you are with Ovo Energy it might be worth checking how they are calculating your direct debits...

I was with SSE until Ovo took them over earlier in the year, so on my online account it only usage figures for the last 3-4 months.
I couldn't find anywhere on my account or on my bills my yearly predicted usage (which they obviously use to work out direct debits)

For context we have over £500 in credit, are already paying close to £200 which only went up this month (for 2 of us in a 3 bed semi), and they are currently suggesting it needs to go higher which didn't seem right, even with the energy increases....

they gave me a usage prediction which was nearly 2000 kwh higher than my actual usage from the past year (based on meter readings that are in my account on meter reading history!) and roughly 800kwh higher for Gas. 
Using the direct debit calculator from the site says I should be paying in the region of 190 a month, and once I take into account my 500 credit, my monthly payments should actually be around the 150 mark! 
I've worked all this out without the government support scheme as I know that drops into my bank account separately with Ovo!

Anyway, they have raised it with a different department to investigate, but couldn't confirm how long this may take or how I will get contacted to confirm any changes, so we will see... but the online tool for direct debit doesn't let me reduce the direct debit amount!

If you are with Ovo, make sure you check your usage predicted usage, it almost feels as if they have inflated the usage predictions on purpose for more cash into their bank......
«1

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Post Name Dropper First Anniversary
    edited 20 October 2022 at 12:12PM
    Options
    And how do you know that this year’s usage will not be higher than last year?

    There was a relatively mild winter last year with much less demand for heating than usual.

    800kWh extra gas doesn’t seem like a lot to cover a colder winter this year.
  • Troytempest
    Options
    Assuming you are on the variable tariff, is it possible to cancel the DD and just make manual payments to reflect actual usage.

    I am with OVO and read the meters every month and know pretty accurately the cost of energy I use so this would work for me if they try and over inflate my DD (which they haven't yet).  
  • ariarnia
    ariarnia Posts: 4,225 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    in our experience ovo are very open to you setting the dd level you think it should be if you contact them and have some reasonable logic for your number. 

    i agree last winter is a bad example to use for estimating usage given how mild it was. better to look at the last few years if you have the data. and then think about any changes you might have made to your usage and behavior since then anyway (i think most people have tried to save energy where they can)

    the risk is really up to you though. either over pay by 40 for a few months and get a refund in February for 250 or so (or keep it as a buffer on the price increase we expect in april) or be ready to increase your dd in the new year if youve used more than you expected. 
    Almost everything will work again if you unplug it for a few minutes, including you. Anne Lamott

    It's amazing how those with a can-do attitude and willingness to 'pitch in and work' get all the luck, isn't it?

    Please consider buying some pet food and giving it to your local food bank collection or animal charity. Animals aren't to blame for the cost of living crisis.
  • dan0292
    dan0292 Posts: 28 Forumite
    First Anniversary First Post
    edited 29 December 2022 at 6:45PM
    Options
    And how do you know that this year’s usage will not be higher than last year?

    There was a relatively mild winter last year with much less demand for heating than usual.

    800kWh extra gas doesn’t seem like a lot to cover a colder winter this year.
    I don't know that.. on the flip side, how do Ovo know it will be? 
    The gas wasn't so much the surprise but the prediction that I will use nearly 50% extra Electricity was!

    ariarnia said:
    in our experience ovo are very open to you setting the dd level you think it should be if you contact them and have some reasonable logic for your number. 

    i agree last winter is a bad example to use for estimating usage given how mild it was. better to look at the last few years if you have the data. and then think about any changes you might have made to your usage and behavior since then anyway (i think most people have tried to save energy where they can)

    the risk is really up to you though. either over pay by 40 for a few months and get a refund in February for 250 or so (or keep it as a buffer on the price increase we expect in april) or be ready to increase your dd in the new year if youve used more than you expected. 

    Yes good point on the rise in April and keeping some for that!

    Only thing is they are trying to put up to £220 ish so its a good £70 a month higher than it should be!


    I'm fortunate enough that I am not in the group that will be choosing between heating and eating this winter, but I don't like to be ripped off, and if this is being done to more consumers, then some people could be making that decision when they don't need to be!!
    The other thing is if they are doing this to a lot of people then they are collecting alot of cash in their bank. Them collecting interest rather than us!

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Post Name Dropper First Anniversary
    edited 20 October 2022 at 12:26PM
    Options
    dan0292 said:
    And how do you know that this year’s usage will not be higher than last year?

    There was a relatively mild winter last year with much less demand for heating than usual.

    800kWh extra gas doesn’t seem like a lot to cover a colder winter this year.
    I don't know that.. on the flip side, how do Ovo know it will be? 
    The gas wasn't so much the surprise but the prediction that I will use nearly 50% extra Electricity was!

    Yes, the electricity one is much stranger.  It's not very seasonal, it's not massively weather dependant, and generally has been trending down slightly from year to year.

    That's the problem with a lot of these - supplier errs high, customer errs low.  Real amount often turns out to be somewhere in between.

    Holding lots of customer money isn't good for their balance sheets though, and interest on cash held is included in their allowable profit calculations so they can't make 'extra' very easily that way.
  • dan0292
    dan0292 Posts: 28 Forumite
    First Anniversary First Post
    edited 29 December 2022 at 6:45PM
    Options
    dan0292 said:
    And how do you know that this year’s usage will not be higher than last year?

    There was a relatively mild winter last year with much less demand for heating than usual.

    800kWh extra gas doesn’t seem like a lot to cover a colder winter this year.
    I don't know that.. on the flip side, how do Ovo know it will be? 
    The gas wasn't so much the surprise but the prediction that I will use nearly 50% extra Electricity was!

    Yes, the electricity one is much stranger.  It's not very seasonal, it's not massively weather dependant, and generally has been trending down slightly from year to year.

    That's the problem with a lot of these - supplier errs high, customer errs low.  Real amount often turns out to be somewhere in between.

    Holding lots of customer money isn't good for their balance sheets though, and interest on cash held is included in their allowable profit calculations so they can't make 'extra' very easily that way.
    Some interesting points there regarding profits for them

    I won't plan to reduce all the way down, with a view of keeping a level of credit in my account, but I have also not included the £400 support money in my calculations.

    But generally we don't want to be losing more money than we need to each month, especially at the minute, so its definitely worth people checking!
  • ariarnia
    ariarnia Posts: 4,225 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    edited 20 October 2022 at 12:57PM
    Options
    dan0292 said:
    The other thing is if they are doing this to a lot of people then they are collecting alot of cash in their bank. Them collecting interest rather than us!

    well not really as ovo pay at least 3-5% on credit balances depending on how many years you have been with them. we intnetionally have a very high credit balance at the moment as the 4% we get is better than our current account. 
    Almost everything will work again if you unplug it for a few minutes, including you. Anne Lamott

    It's amazing how those with a can-do attitude and willingness to 'pitch in and work' get all the luck, isn't it?

    Please consider buying some pet food and giving it to your local food bank collection or animal charity. Animals aren't to blame for the cost of living crisis.
  • dan0292
    dan0292 Posts: 28 Forumite
    First Anniversary First Post
    Options

    ariarnia said:
    dan0292 said:
    The other thing is if they are doing this to a lot of people then they are collecting alot of cash in their bank. Them collecting interest rather than us!

    well not really as ovo pay at least 3-5% on credit balances depending on how many years you have been with them. we intnetionally have a very high credit balance at the moment as the 4% we get is better than our current account. 

    I didn't know that! Thanks!

    Will check that one out


  • ariarnia
    ariarnia Posts: 4,225 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    dan0292 said:

    ariarnia said:
    dan0292 said:
    The other thing is if they are doing this to a lot of people then they are collecting alot of cash in their bank. Them collecting interest rather than us!

    well not really as ovo pay at least 3-5% on credit balances depending on how many years you have been with them. we intnetionally have a very high credit balance at the moment as the 4% we get is better than our current account. 

    I didn't know that! Thanks!

    Will check that one out


    on the billing page look at 'more detail' and you should see a line that looks like this



    3% in your first year, 4% in your second and 5% on your third on credit balances after your usage has been taken for. 
    Almost everything will work again if you unplug it for a few minutes, including you. Anne Lamott

    It's amazing how those with a can-do attitude and willingness to 'pitch in and work' get all the luck, isn't it?

    Please consider buying some pet food and giving it to your local food bank collection or animal charity. Animals aren't to blame for the cost of living crisis.
  • Effician
    Effician Posts: 482 Forumite
    First Anniversary Name Dropper First Post
    Options
    ariarnia said:
    dan0292 said:
    The other thing is if they are doing this to a lot of people then they are collecting alot of cash in their bank. Them collecting interest rather than us!

    well not really as ovo pay at least 3-5% on credit balances depending on how many years you have been with them. we intnetionally have a very high credit balance at the moment as the 4% we get is better than our current account. 


    No interest for SSE refugees.
    I went through a similar situation to the OP & ended up switching supplier in August  , OVO customer service was so bad it made the continuous hikes in DD's a nightmare to sort out.
Meet your Ambassadors

Categories

  • All Categories
  • 343.7K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.8K Work, Benefits & Business
  • 608.8K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards