Ovo Energy mis-accounting of Government Energy Support Scheme

Cityrunner

Ovo Energy direct debit customers - check your online accounts

Ovo Energy appear to be accounting for the Government Household Energy Support Scheme incorrectly in their on-line accounting, for Ovo Energy customers who pay by Direct Debit.  They appear to be treating the £66 Government support payment as an account refund, thereby reporting the wrong amount to be set against the energy cost for the month.  An example for November/December 2022.  Account Balance £395.26cr, Direct debit £181.00, making a credit balance at the start of the accounting month of £576.26.  Nov/Dec energy charges £235.65, producing a current credit balance of £340.21.  However, in Ovo Energy's online accounting, they are treating the Government support as a Ovo Energy refund of £66.00, which suggests the direct debit payment is not £181.00, but £115.00, producing an Ovo Energy online credit balance of £274.61.  This is an incorrect accounting of the Government Energy Support Scheme.

The £400 Government Energy Support Scheme payment is a 3rd party support scheme payment for UK energy customers, not a subsidy scheme for energy suppliers, which is how Ovo Energy are presently accounting for the payments in their online accounting system.

eskbanker

Sounds like the same issue discussed at:

https://forum.ovoenergy.com/my-account-140/66-government-energy-bills-support-scheme-deducted-from-my-ovo-account-balance-not-added-11863

Cityrunner

My comment earlier may have been premature.  I think that the online account being referred to above was incomplete, and missing the credit that is due to be paid at the end of the billing month (18 December).  I await the full month's accounting before commenting again.

MikeJXE

It doesn't surprise me in the least thats why I have taken the reins and cancelled my direct debit and issued a standing order. IMO it's not a good idea to give control of your bank account to the energy suppliers 

Alderbank

MikeJXE said:

IMO it's not a good idea to give control of your bank account to the energy suppliers 

It can be moneysaving though. I get a discount for paying by Direct Debit.

ETA: it's a bit OTT to say that a Direct Debit gives them 'control of your bank account.'

MikeJXE

Meanwhile I have jumped ship and left them, paid my final bill and had a large payment back into my bank

I'm now with Octopus who accepted my usage over the last 2 years and agreed  my own amount for my DD for £100, this being larger than it should be as I don't want to get into debt over the last couple of winter months.

1stdan2000

Anyone else completely baffled by OVO energy refunds?
What they are actually doing is applying the Energy Bill Support to the Electricity charges (my Mum's), and reducing it - That's correct, that makes sense.
Then they are also refunding £67 to my mum's bank account. But that reduces the effect of the £149 direct debit payment to £82.
Consequently her debt is increasing each month.

I emailed them asking why. The response simply described what they were doing.
How can anyone in charge of accounts not understand what they are doing wrong?

molerat

1stdan2000 said:

Anyone else completely baffled by OVO energy refunds?
What they are actually doing is applying the Energy Bill Support to the Electricity charges (my Mum's), and reducing it - That's correct, that makes sense.
Then they are also refunding £67 to my mum's bank account. But that reduces the effect of the £149 direct debit payment to £82.
Consequently her debt is increasing each month.

I emailed them asking why. The response simply described what they were doing.
How can anyone in charge of accounts not understand what they are doing wrong?

Her debt is only increasing if she is using more energy than her £149 direct debit pays for each month.

They are doing a bit of fancy accounting simply because the billing system was not designed to account for these subsidies.

In the end all it does is put and extra £66/£67 in her bank each month, nothing else changes.

Benjaminbreen87

Just to add to this post

I have raised a complaint with Ovo Energy today.

Having reviewed my winter bills it is clear they are not administering the government support scheme correctly.

They were paying £67 into my account each month but they were also applying a £67 charge onto my bill as a “refund”. The net result being £0 gain for me. 

When I tried to explain this to the agent on the phone, she was completely bamboozled and couldn’t make sense of it.

Let’s see what the complaint brings, I bet this has happened to so many customers.

TheMilkmansDad

and are they reducing your bill by £67 per month? Look at the charges, you'll probably see a credit there.

MWT

Benjaminbreen87 said:

When I tried to explain this to the agent on the phone, she was completely bamboozled and couldn’t make sense of it.

Let’s see what the complaint brings, I bet this has happened to so many customers.

That is because you are wrong.

Yes, it is confusing, and mostly because the suppliers had to figure out a way to show what was going on without investing in major charges to their billing systems.

As others have mentioned, the bit you are missing is that there is also a £67 reduction applied to the calculation of the charges for the month...

So net result it you got £67 of your money returned to you and your charges were still reduced by £67.