ovo direct debit

Viperex

Hi guys been with ovo for years and have always been good with Bill payments. Now I have built up £400 credit and for the last few months the dd has gone higher?? What gives. I have even sometimes top up the balance. So if I have £400 credit should the direct debit payments be lower?. 

Marvel1

Maybe to ensure to cover the winter months?

QrizB

Viperex said:

So if I have £400 credit should the direct debit payments be lower?. 

It all depends on your expected annual bill (which should be 12x your DD payment).

£400 credit on an annual bill of £1000 seems a bit high.

£400 on £4000 is a bit low, IMO.

How much do OVO think your annual bill is (it should be shown on your latest bill, as part of the Estimated Annual Consumption numbers)? How much is your new DD?

Viperex

QrizB said:

Viperex said:

So if I have £400 credit should the direct debit payments be lower?. 

It all depends on your expected annual bill (which should be 12x your DD payment).

£400 credit on an annual bill of £1000 seems a bit high.

£400 on £4000 is a bit low, IMO.

How much do OVO think your annual bill is (it should be shown on your latest bill, as part of the Estimated Annual Consumption numbers)? How much is your new DD?

£175 new dd

QrizB

Viperex said:

QrizB said:

Viperex said:

So if I have £400 credit should the direct debit payments be lower?. 

It all depends on your expected annual bill (which should be 12x your DD payment).

£400 credit on an annual bill of £1000 seems a bit high.

£400 on £4000 is a bit low, IMO.

How much do OVO think your annual bill is (it should be shown on your latest bill, as part of the Estimated Annual Consumption numbers)? How much is your new DD?

£175 new dd

£2100 a year of payments, then.

What's your predicted annual spend (shown on your bill)?

Ildhund

OVO updates account balances daily, so 'I have £400 credit' doesn't  say very much. Your balance the day before the DD is taken is very different from that the following day. The DD calculator in the online account includes the current balance; you can see the calculation on the next page under How we work out your minimum monthly payment. The basis is the 'Future Annual Consumption' shown on your Plan page, the figure being updated regularly to reflect actual usage. The recent policy change requiring a whole month's credit on each account at the end of winter is causing a lot of resentment, and it may well be challenged ...

Peter999_2

I left Ovo for reasons like this and the fact they don't offer a variable direct debit option.

I moved to Octopus who do offer a variable direct debit.    I therefore get a bill on the last day of the month and then they take that exact amount out on the 14th of the next month.    That way you can never build up a large credit or have a large debit - I much prefer it this way.

Ildhund

Sure, a lot of people would rather do it that way. I wonder, though, how they feel on 3 January, when the statement for the month typically with the highest cost lands just when their bank balance is at its 12-month absolute low water mark. There are probably quite a number of DDs that banks dishonour because of insufficient funds in January.

Viperex

QrizB said:

Viperex said:

QrizB said:

Viperex said:

So if I have £400 credit should the direct debit payments be lower?. 

It all depends on your expected annual bill (which should be 12x your DD payment).

£400 credit on an annual bill of £1000 seems a bit high.

£400 on £4000 is a bit low, IMO.

How much do OVO think your annual bill is (it should be shown on your latest bill, as part of the Estimated Annual Consumption numbers)? How much is your new DD?

£175 new dd

£2100 a year of payments, then.

What's your predicted annual spend (shown on your bill)?

Can't find the predicted annual spend but have found what I spent whole year 2024 compared to what I have sent now. 

Viperex

Here's the rate 

Peter999_2

Ildhund said:

Sure, a lot of people would rather do it that way. I wonder, though, how they feel on 3 January, when the statement for the month typically with the highest cost lands just when their bank balance is at its 12-month absolute low water mark. There are probably quite a number of DDs that banks dishonour because of insufficient funds in January.

I feel fine on 3rd January when the bill arrives.   It just requires a bit of budgeting.