OVO Direct Debit Increase

[Deleted User]

Thanks @Ildhund

I see it now. I guess if they were to apply that in such a situation as this, then the defence would be that Ovo sets the monthly payment amount. Even if a customer suddenly increases their normal consumption, how does the customer know what to pay until they receive a bill showing they have fallen into a debit situation?

Perhaps, in the case of a customer persistently taking advantage, then Ovo may have good cause to complain, but again they should be adjusting the monthly payment collected to suit.

In essence, the second part appears to contradict the first part of the term.

Ildhund

You'll remember St Martin's famous DD sine curve rising to a credit peak at the end of summer and falling to a correspondingly large (or larger) debit trough at the end of winter:

This arrangement was deprecated some years ago as customer debt increased to alarming levels, so now the norm for many suppliers sees the bottom of the trough sitting at (or in some cases, like OVO's, a bit above) the X axis. Customers are taking a long time to be weaned off the old arrangement, so that's what I think is the main reason for the stipulation we're talking about. @luci's arrangement won't ruffle many feathers, but there will undoubtedly be an adjustment to her (?) DD at the next quarterly review.

luci

"@luci's arrangement won't ruffle many feathers, but there will undoubtedly be an adjustment to her (?) DD at the next quarterly review."

I have been fully expecting Outfox to increase my DD. It is really low compared to others, but it was accurate based on our usage. However, we've had the heating on a lot more than the previous 12 months, which will partly account for being in debit as certain points. I should go into credit in the next couple of months. Whether Outfox leave it till that credit increases over the summer months, or whether they increase the DD remains to be seen. I'm fine with it either way.

I like to have a zero balance plus one month's DD at the anniversary of the date I joined the supplier. That worked fine when I was switching in February or March. Switching in November has scuppered that.

StingyBuyer

Thanks all for the input. I'm not sure why they want a month credit at the end of winter. I'm quite proud I'm in credit at all as it stands. I could understand a policy where they stipulate a credit of some sort going in to winter from September but not at the end of winter. My credit will now start to build over the coming months if I retain my current spend.

Ildhund

That is presumably today's recommendation This calculator is in the death throes of winter's end, so I think everyone should be ignoring it for the time being. A new improved version will emerge in a few days' time, I'm sure, where the target date has shifted to 31 March 2027.

@StingyBuyer wrote:

 I'm not sure why they want a month credit at the end of winter …

I gave my guess a day or two ago: "IMO, having a credit balance big enough to cover one or two months' usage seems eminently reasonable, to prevent a slide into debt should something prevent a DD from being paid."

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/81905954#Comment_81905954

couldnt that calc ex be interpreted as targeting £102 + £473 new if just one off - £324 current if just one remaining a £149 adjustment per month = £251 as the actual required if just now over the 1m - to impact balance at end of march.

What happens if enter the suggested £473 ??

so not saying an ongoing £473 at all - that it is just a last minute one off or two off if pre Feb payment (£400 rwqd balance ?) - shortfall correction.

But nasty over such a short term - certainly cf Octopus description which I'd interpret as always their intention to divide shortfall by 12 - to take over 12 months.