OVO hiked direct debit 15% within first 60 days - what can i do?

plot64

Hi all, 

Very recently switched to OVO Energy from E-on Next after calculating total energy usage for the past 2 years and using the higher figures when signing up (going through Martin's energy club).

I've only had a single bill from them and they've already hiked the direct debit up by about 15% !!

This was not what i signed up for, their original DD amount was based on my higher figures and i've not even got the heating on at all yet! They're saying by end of March 2026(!!!!!) I'll be 11 quid in credit. 2026!! I don't mind it increasing if my consumption goes up (doubtful) and im on a fixed rate so there should be no need.

I feel like they've presented a low direct debit sum to lure me in and now have hiked it substantially within the first 60 days!!!

Is there anything i can do about this? Their website won't allow me to adjust the DD back down any lower than their new increased amount. So annoyed and totally not justified after being a customer for less than 2 months! If they'd waited 3-6 months and said my usage was higher on average than that provided then fair enough, but they haven't. Its ridiculous!

Has anyone else experienced this, and what can i do? >:-|

MikeJXE

If as you say you have your usage figures (in kWh) for 2 years prove to them (OVO) they are wrong 

Or switch to VDD 

Gerry1

MikeJXE said:

If as you say you have your usage figures (in kWh) for 2 years prove to them (OVO) they are wrong 

Or switch to VDD 

OVO don't offer MVDD.

EssexHebridean

They are required to make sure that your DD is reasonable. So let’s say your own 2 year figures were for warmer than average years, it might be reasonable for them to say they wanted a figure slightly above that which would cover your annual use? Have you spoken to them about it, presented your figures and told them where you feel would be reasonable for the DD? (Martin did a podcast on exactly that subject a while ago.) 

plot64

EssexHebridean - i dont think this year is going to be any colder than the last 2 on average, certainly not significantly. Not spoken to them yet as i was looking for peoples advice/opinions before approaching them. I'm just somewhat outraged.

You give them actual usage figures and they use those to provide a quote. So based on that, you sign up. Then within less than 2 months after only a single bill they decide to increase that quote by 15%??? There isnt even enough data to make such a determination as we've only been billed once! 

I find this to be by design.

Of course i'll contact them to try and discuss, im just outraged and disgusted. As i say, had I been there 6 months or even 3 and they got in touch to say, 'hey, youre usage is way over what you told us it would be...' then fair enough. But this is simply not the case at all. 

Qyburn

In the time you've been with them, how does your usage compare with the annual figures?  It's likely that your recent monthly use has been higher than annual/12 since it's Winter. And as a new customer you won't have credit built up from the cheaper Summer months.

Are you happy to share actual figures? Annual use, and November's use, in kWh not in £.

Brie

Ask them for justification.  Have your own calculations based on your fixed tariff ready to argue with them.  Confirm with them that you insist that your DD remains as initially promised and if after 6 months your account is completely out of whack (or some more business like terms) that you will make an additional payment.  But that your DD must remain the same.  Don't take no from them.

Hoenir

plot64 said:

i dont think this year is going to be any colder than the last 2 on average, certainly not significantly. 

The past 2 years have been historically mild though. What you think doesn't accord with the facts. 

teaselMay

It may well relate to you not having built up any credit with them and so going into winter with a zero balance

Scot_39

plot64 said:

Hi all, 

Very recently switched to OVO Energy from E-on Next after calculating total energy usage for the past 2 years and using the higher figures when signing up (going through Martin's energy club).

I've only had a single bill from them and they've already hiked the direct debit up by about 15% !!

This was not what i signed up for, their original DD amount was based on my higher figures and i've not even got the heating on at all yet! They're saying by end of March 2026(!!!!!) I'll be 11 quid in credit. 2026!! I don't mind it increasing if my consumption goes up (doubtful) and im on a fixed rate so there should be no need.

I feel like they've presented a low direct debit sum to lure me in and now have hiked it substantially within the first 60 days!!!

Is there anything i can do about this? Their website won't allow me to adjust the DD back down any lower than their new increased amount. So annoyed and totally not justified after being a customer for less than 2 months! If they'd waited 3-6 months and said my usage was higher on average than that provided then fair enough, but they haven't. Its ridiculous!

Has anyone else experienced this, and what can i do? >:-|

The Ovo plan is based on cOct to Mar 26 - there calc will be including only 1 summer but almost 2 full winters in their DD level.

Your expected annual average (total / 12 DD level ) therefore is pretty meaningless given their I suspect very deliberate choice of the end date.  As its most likely designed to shift you to a positive biased credit/debit cycle annually.

And the problem is your choice of switch date - just as go into high winter use months - from a zero credit start point with them. As your annual/12 DD would see you running an increasingly debit / debt balance - over winter - then recovering to zero this time next year then repeating.

Suppliers (and arguably Ofgem) really dont want you 6 winter months above normal annual/12 expected DD level in debit / debt.

Which is an operating capital cost for the supplier - essenitally they would be lending you money - or rather borrowing to pay their suppliers and bills - before you paid them.

[Aside - the Ofgem presumption for the presumed annualised DD vs Standard Credit price differential in the SVT caps - currently £112 - is that DD accounts run at least part of the time in credit - ie. that you often pay in advance - then use.]

Many people on the suppliers preferred credit cycle (zero balance spring - build credit over summer into winter - zero again next spring) would be more like 2 monthly DD in credit these days going into Oct/Nov after a summer of building credit. You started at zero - unless they took a deposit (*).

And that Mar 26 plan - arguably will get you back more gently - into that preferable to suppliers cash flow cycle (and Ofgem general avoid debt building guidance) - over the next c16 months.

And they could arguably have chosen an even more aggresive adjustment to the cycle - with far higher DD level - to get you to zero balance at the end of Mar 2025.  Which would have upset you even more.

 

[(*) One large supplier iirc actually set a nominal DD - for some new customers - but took the full amount if higher - for the first 6 months - which would have the same sort of effect - zero debit / credit after 6 months if coincided with winter.  And for those without a supplier history - e.g. new first time buyers - one also took an upfront deposit - c£500 for one poster here]

Your lucky if you haven't needed heat this year.

I've had mine on low in mid Oct for 1 long dull grey windy cold weekend - and 2 cold snaps in Novemember - so already up 10%/20% respectively on last 2 years Nov total kWh.

Swipe

Hoenir said:

plot64 said:

i dont think this year is going to be any colder than the last 2 on average, certainly not significantly. 

The past 2 years have been historically mild though. What you think doesn't accord with the facts. 

It accords with the met office winter forecast which predicts a mild Jan and Feb