OVO strongly "suggesting" I increase my DD

jockosjungle

So I keep getting strongly worded e-mails and messages from OVO about my DD being under based on a projected 12 months. In the grand scheme of things its about a 10% increase, but the thing is, in the past I've just been told they're doing this and now they're hassling me to increase my DD (rather than they just do it).

Is this some sort of scam to give me absolutely no comeback when I massively overpay in 12 months time?

I don't massively want a huge bill in 12 months time, but in all honesty I'm not seeing it will happen, we already pay £180 a month and until the last two months, we've always been in credit (at some points up to £600) and this is how I thought it is supposed to work, you let it build up in the summer to cover the winter. They seem to be basing the sums that what we used in January will carry on all year (which clearly it won't).

As I say, normally I'm just told it is increasing. Has anyone else noticed this? 

I don't see much point in complaining to them, they're not increasing my DD, just almost demanding that I do it voluntarily. 

[Deleted User]

Do your own cost/DD calculation based on your usage in kWh/year for gas and electricity.

FWiW, I think that suppliers cannot do right for wrong? They are under the direction from Ofgem to reduce the amount of consumer debt but are then pilloried by Government because they fit pre-payment meters. The Government then overreacts and suppliers have no option but to stop meter changes. 

What other commercial sector of society would be forced to sell goods knowing that many people are unable to pay for what is being supplied?  Recent Government decisions will inevitably lead to bad debts being added to the energy costs of all consumers.

To be pedantic, you would not be overpaying by increasing your monthly DD payment. You would just be adding more credit to your account to meet future energy costs. 

MorningcoffeeIV

jockosjungle said:

Is this some sort of scam to give me absolutely no comeback when I massively overpay in 12 months time?

Yes, that's right.  It's another of those scams that isn't a scam. They're increasingly common round these parts.

If you find you've built up too much credit, your comeback would be to would get the money back.  It's the big flaw in OVO's scam, where they can't even get to keep your money..

Bigphil1474

[Deleted User] said:

Do your own cost/DD calculation based on your usage in kWh/year for gas and electricity.

FWiW, I think that suppliers cannot do right for wrong? They are under the direction from Ofgem to reduce the amount of consumer debt but are then pilloried by Government because they fit pre-payment meters. The Government then overreacts and suppliers have no option but to stop meter changes. 

What other commercial sector of society would be forced to sell goods knowing that many people are unable to pay for what is being supplied?  Recent Government decisions will inevitably lead to bad debts being added to the energy costs of all consumers.

To be pedantic, you would not be overpaying by increasing your monthly DD payment. You would just be adding more credit to your account to meet future energy costs. 

To be fair, if people can't afford to pay their energy bills with credit meters, why would installing a pre-payment meter and charging a higher unit rate actually fix the problem. It's not exactly a luxury commodity we are talking about. Maybe if they installed pre-payment meters for those struggling to pay bills, but charged a unit rate which was lower, there wouldn't be such an issue.

jockosjungle

MorningcoffeeIV said:

jockosjungle said:

Is this some sort of scam to give me absolutely no comeback when I massively overpay in 12 months time?

Yes, that's right.  It's another of those scams that isn't a scam. They're increasingly common round these parts.

If you find you've built up too much credit, your comeback would be to would get the money back.  It's the big flaw in OVO's scam, where they can't even get to keep your money..

In the past, companies have just increased it. They get to increase the credit I have on my account, and at some point I might be able to ask for it back I admit, but in my experience they're never in a hurry to give it you back. They're also unlikely to pay me interest on my credit balance are they?

Anyway I just thought it was interesting why they're doing it this way, I've had utility bills for 20 years and they've always just increased them when they feel like it, why the change of approach?
 

[Deleted User]

Bigphil1474 said:

[Deleted User] said:

Do your own cost/DD calculation based on your usage in kWh/year for gas and electricity.

FWiW, I think that suppliers cannot do right for wrong? They are under the direction from Ofgem to reduce the amount of consumer debt but are then pilloried by Government because they fit pre-payment meters. The Government then overreacts and suppliers have no option but to stop meter changes. 

What other commercial sector of society would be forced to sell goods knowing that many people are unable to pay for what is being supplied?  Recent Government decisions will inevitably lead to bad debts being added to the energy costs of all consumers.

To be pedantic, you would not be overpaying by increasing your monthly DD payment. You would just be adding more credit to your account to meet future energy costs. 

To be fair, if people can't afford to pay their energy bills with credit meters, why would installing a pre-payment meter and charging a higher unit rate actually fix the problem. It's not exactly a luxury commodity we are talking about. Maybe if they installed pre-payment meters for those struggling to pay bills, but charged a unit rate which was lower, there wouldn't be such an issue.

Point taken  -  but pre-payment meters do limit the amount of any accruing debt. The alternative option is that suppliers wait until until the Winter period is over, and then get a Court Order for a meter disconnection. 

The CEO of BG is on record as saying that the Government has to find a way of dealing with consumer debt. A social tariff is one option and debt write off is another: the downside of both options is that the cost will end up being added to standing charges.

dunstonh

Is this some sort of scam to give me absolutely no comeback when I massively overpay in 12 months time?

How could it be a scam?   You pay for what you use.  No more, no less.    The averaging is just an estimate based on available detail but your bill isn't worked that way.

As I say, normally I'm just told it is increasing. Has anyone else noticed this? 

Costs are increasing.  And 2022 was a very mild year.   So, you shouldn't be projecting future use on 2022 usage.  They will be using assumptions based on the median.

You haven't mentioned your use at all in your post.  However, that is the only thing that matters.    Look at your 2022 in kWh (unit readings).  Multiply it by about 20% (to make up for 2022 being mild), then multiply it by the anticipated costs from April 2023.   That is a good projection of what you should be paying each year.   If the supplier is way off that then you have the data and analysis to put them right.   

If you don't have the data and haven't done any analysis of your real use and real costs then you are just ranting.

EssexHebridean

Marti has done a fair bit of stuff on the requirement for the suppliers to set your DD "fairly and reasonably" - if they are not doing so, you have recourse. To use that recourse though you need facts and figures - so work out your actual annual cost projection as detailed in previous responses - including allowing for the cost increase in April. Remember also that your costs over the past 12 months have been subsidised by the EBSS payments (£333 to date I think with the final £67 to come next month?)

Once you have the figures and know what you need to be paying, you can contact the supplier and politely present your evidence, and tell them what you would consider to be a reasonable amount. Does that make sense? 

wild666

I'd wait until any credit is used up and maybe the next months DD won't cover the the charges then make a one off payment to cover the extra then maybe consider increasing the DD if it isn't DD isn't covering the monthly usage.

deano2099

You haven't mentioned your use at all in your post.  However, that is the only thing that matters.    Look at your 2022 in kWh (unit readings).  Multiply it by about 20% (to make up for 2022 being mild),

If you're measuring Jan-Dec 2022 then that may be correct as Jan/Feb 2022 were mild. If you're measuring Feb 2022-Jan 2023, it's probably overstating it as December 2022 and Jan 2023 overall have been colder than the average winter temperature.

GibbsRule_No3.

I am with EDF and they seem happy to repay any over payment fairly quickly, not sure if that is due to only getting two readings a year.  Last year they wanted to reduce my DD, but with all the doom and gloom about rising prices, I wanted it left as it was, so a more steady rise could take place (if needed) this year.  It looks like I have won out both ways, a tidy  refund and DD staying the same until the next meter is due in July.  When I would expect a smallish rise in DD.

Growing up we had meters that needed physical money having to be put in them, if we did not have the money the gas did not turn on, so a trip to a neighbour to borrow the money until we had it to pay back. Usually a spare shilling, florin or half a crown was left on top of the meter for an emergency. If meters that take topping up are not to be used, what is to stop people just running up enormous bills and saying, "sorry, I did not realise I had to pay for it"?  Granted paying more than a person like me with DD should not be allowed, we could all pay towards those type of meter, but is should ensure a careful use of energy.