This Morning chat, energy supplier wanting to hold 3 months credit!

flaneurs_lobster

Seems about right for my gaff, would normally be about 2.5 month's-worth in credit around mid-November which goes down to something negative come March.

Scot_39

WiserMiser said:

Welcome to the forum.

Why put up with it?  You don't need Martin to fix it, you can do it yourself today (unless you're on a fixed tariff and early exit penalties apply) - Ditch and Switch !

And hit tge same problem elsewhere - and potentially higher winter bills immediately  that might not be affordable to many still choosing annualised plans.

And still wait for upto 2-3 months - until gets refund (ofgem allows 6 weeks final bill, 2 weeks credit refund after, and has a £40 fine in place as suppliers do miss those targets - and that  8 weeks will be based on working days - with 2-3 bank holidays imminent)

Scot_39

flaneurs_lobster said:

Seems about right for my gaff, would normally be about 2.5 month's-worth in credit around mid-November which goes down to something negative come March.

And Ovo like Octopus do not allow that negative.

And adjust DDs as q matter of policy to drag those they predict being in debit or insufficient credit - up to their 1 month credit target.

So versus your negative at 2.5m now, easily add another month plus on top now.

Scot_39

findinganswersgal said:

Sorry I dont think I made myself clear, Martin Lewis did say that yes it does cover your fuel in the winter, but to hold 3 months is ridiculous, he did say he was going to look into this but just couldn't believe that there  not actually allowed to do so!

He was still showing the sort of credit debit cycles from years ago in a recent program.

Completely out of touch with how suppliers are now running their annualised direct debit schemes - but in general all schemes - such that accounts are always in credit - never in  debit.

And arguably Ovo might arguably be taking it to the cashflow limit - covering some yet to be consumed / unbilled units in Apr say in their positive Mar/April targets.

Another reason mvdd might disappear at other suppliers - at least at annualised dd discount rates.

WiserMiser

Scot_39 said:

findinganswersgal said:

Sorry I dont think I made myself clear, Martin Lewis did say that yes it does cover your fuel in the winter, but to hold 3 months is ridiculous, he did say he was going to look into this but just couldn't believe that there  not actually allowed to do so!

Another reason mvdd might disappear at other suppliers - at least at annualised dd discount rates.

If Ofgem were any good they'd make all suppliers offer it as an option.  Those who can't budget for themselves would still be able to have equalised DDs.

Scot_39

Ofgem are not just consumer "champions" like say ML attempts to be (Ofcoms now fixed price rises a classic example of his interventions going wrong for millions) , they have a responsibility to ensure an operational energy market.
People on often now monthly - not 3 monthly ' standard credit pay a significant premium for paying their bills after consumption.  Arguably MVDD should too  - as shares much of the cashflow cost and yes even some of credit risk too.
So the chances of Ofgem - even more so since crisis, 30 suppliers crashing out and £100 SoLR costs - so put new financial resilience rules in place this year - ever insisting its offered by all - at least at same rates - are I suspect slim to zero.
Iirc Ovo even charge their standard credit customers for their paper statements on top of Ofgem higher rates. Yes - Googled it - £1.50 per month.

bristolleedsfan

findinganswersgal said:

Has anyone seen this morning 9/12/2025, a comment was made about a energy company that keeps 3 months worth of credit and wont give you a refund. I am in this boat too! I find it silly them holding 3 months worth of credit sat in my OVO account. Please Martin Lewis can you sort it out, I would like some of my money back.

Refund Policy | OVO Energy

Ildhund

findinganswersgal said:

... a energy company that keeps 3 months worth of credit and wont give you a refund. I am in this boat too! I find it silly them holding 3 months worth of credit sat in my OVO account. 

I suggest you read the bit again where you're required to leave three months'-worth of DD payments in your account when applying for a refund. I can't locate it just now, because my credit balance isn't big enough, but I think you'll find that when applying for a refund online, you won't be able to ask for more than the current balance less three months' DD payments. However, you can get more by calling OVO support.

This is just a safety measure, so that a support agent can point out the risks involved in taking more than the online tool will allow. You are required, though, to leave one month's DD in the account after the refund. This is to cover the current month's costs should the next DD fail for whatever reason. 

So, were you referring to the online tool, or did you meet an unhelpful support agent?

born_again

WiserMiser said:

If Ofgem were any good they'd make all suppliers offer it as an option.  Those who can't budget for themselves would still be able to have equalised DDs.

That's a very sweeping statement. I can more than budget, but prefer the known of a regular payment going out. Which is a very good form of budgeting for many.

WiserMiser

born_again said:

WiserMiser said:

If Ofgem were any good they'd make all suppliers offer it as an option.  Those who can't budget for themselves would still be able to have equalised DDs.

That's a very sweeping statement. I can more than budget, but prefer the known of a regular payment going out. Which is a very good form of budgeting for many.

Yes, but it's a sweeping statement that's fully justified !  An even better form of budgeting is to opt for MVDD and set up a Standing Order to pay that amount every month into an instant access savings account ring fenced for that purpose.  You won't have to beg your supplier to change the amount, you won't have to wait eight weeks to get the closing balance refunded, plus you'll get a bit of interest, probably up to about 4% if you shop around. 😎