Does My Direct Debit Take into Account April 2023 Rise

amillionlittlepieces

Hello all,

I’m with OVO energy and like a lot of us I’m on their variable plan. On the plan, the direct debit is calculated based on where my balance will be in 12 months - does anyone know if this takes into account the planned (or maybe not now) rise in the Government Price Guarantee.

if it goes up to £3000 will my direct debit remain constant as this is taken into account or would it increase?

thanks all

MattMattMattUK

amillionlittlepieces said:

Hello all,

I’m with OVO energy and like a lot of us I’m on their variable plan. On the plan, the direct debit is calculated based on where my balance will be in 12 months - does anyone know if this takes into account the planned (or maybe not now) rise in the Government Price Guarantee.

if it goes up to £3000 will my direct debit remain constant as this is taken into account or would it increase?

thanks all

Normally they take account of price changes to some extent, but it is unknown at the moment. Factoring in the price drops in Q3 and Q4 even if the cap is kept at £3,000 it is unlikely they would need to raise the Direct Debit.

Scot_39

I was told years ago - by EOn call / customer service - that they only had acess to run numbers at approved tariff numbers(*).

That was when I called very soon after a previous Ofgem rise to ask for my DD amount increase.

They ran the numbers - and the system predicted a large credit balance 12m later - and as I had had refunds before - the system said no need.

A supervisor authorised it - once I mentioned the Ofgem % rise though.

As @MattMattMattUK - the next few months - if goes as predicted - could see rises then falls back to this winters level again (£2100 if including the £400 EBSS) as Cornwall Insights currently forecast just over £2100 for Q3/4.

So overall see no real reason to increase DD.  (But do wonder what will happen to people who's annual reviews are in Q2 at if at £3000 EPG - based on (*))

Anthear

I have recently moved house and my new supplier wanted around £150 a month for electricity.  My actual bill was £49.  I think they work off 'industry averages' to an extent, and would expect them to raise your DD to take the new unit rate into consideration.