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# I have lots of credit in my OVO online account - why are you suggesting a large increase in my monthly Direct Debit payment?

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why do ovo even though ive never missed a payment and im £110 in credit continue to threaten to raise my payment by £ 80 a month ,we are in the middle of a pandemic people are dying or losing there jobs and we get these threats to nearly double monthly payments based on ovo and there crystal ball and what you may or may not use energy wise over the next 6 months

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Best answer by Transparent 22 November 2020, 15:06

Updated on 26/01/2021: The info in this update box was taken from this topic

## How do you calculate my Direct Debit?

When you comes on supply with us, we’ll use your annual usage figures to calculate how much your energy will cost over the year. Once we’ve got the annual amount, we’ll divide this into 12 - this will give us the Direct Debit amount.

If you haven’t got your annual usage figures, we’ll use the national averages. You would then need to send us regular readings for at least 3 months, then we’ll manually calculated the annual figure.

## Direct Debit FAQs:

See this topic for 7 of the most comm Direct Debit questions

Hi @enlighten me - And may I please do just that… enlighten you.

The following graphic shows a customer who started a Year’s Contract on 13th January. Based on the information he fed in when obtaining the quotation, OVO’s computer has estimated the annual spend for electricity and gas combined will be £1230. That is shown as the red horizontal line.

We are viewing the graph as if it is now the last week in September.

The green line shows the money in the customer’s energy account. The vertical lines on 14th of each month are the Direct Debits. This amount decreases each month in line with the current usage.

The Ofgem regulations allow for Energy Suppliers to keep an account in credit to an amount at least equal to the estimated usage for the following month.

When the Contract starts, there is a complete month before any money is paid in. So the following 11 Direct Debits are calculated as greater than the actual monthly spend so that the account will be in credit by at least one-month’s amount at the end of the Contract date. Hence the } at top right of the graph.

By the end of September it is clear that the customer is likely to have used more energy (particularly gas) by the Contract End Date.

The longer that he takes no action, the steeper will be the increase in the Direct Debit when the Energy Supplier eventually imposes it. This is most likely the situation in which you find yourself.

Note that a 12-month Contract actually consists of only eleven DD payments, not twelve. So the increase is always going to seem steeper than a customer expects by doing the basic maths.

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Userlevel 7
+2

Good morning @enlighten me ,

And if you can answer these questions, that would be great

• Are you a Duel-Fuel member, or just Electricity Only
• What tariff are you on
• Have you ever missed a payment
• Do you have a smart meter

Thanks

Userlevel 7
+3

Updated on 26/01/2021: The info in this update box was taken from this topic

## How do you calculate my Direct Debit?

When you comes on supply with us, we’ll use your annual usage figures to calculate how much your energy will cost over the year. Once we’ve got the annual amount, we’ll divide this into 12 - this will give us the Direct Debit amount.

If you haven’t got your annual usage figures, we’ll use the national averages. You would then need to send us regular readings for at least 3 months, then we’ll manually calculated the annual figure.

## Direct Debit FAQs:

See this topic for 7 of the most comm Direct Debit questions

Hi @enlighten me - And may I please do just that… enlighten you.

The following graphic shows a customer who started a Year’s Contract on 13th January. Based on the information he fed in when obtaining the quotation, OVO’s computer has estimated the annual spend for electricity and gas combined will be £1230. That is shown as the red horizontal line.

We are viewing the graph as if it is now the last week in September.

The green line shows the money in the customer’s energy account. The vertical lines on 14th of each month are the Direct Debits. This amount decreases each month in line with the current usage.

The Ofgem regulations allow for Energy Suppliers to keep an account in credit to an amount at least equal to the estimated usage for the following month.

When the Contract starts, there is a complete month before any money is paid in. So the following 11 Direct Debits are calculated as greater than the actual monthly spend so that the account will be in credit by at least one-month’s amount at the end of the Contract date. Hence the } at top right of the graph.

By the end of September it is clear that the customer is likely to have used more energy (particularly gas) by the Contract End Date.

The longer that he takes no action, the steeper will be the increase in the Direct Debit when the Energy Supplier eventually imposes it. This is most likely the situation in which you find yourself.

Note that a 12-month Contract actually consists of only eleven DD payments, not twelve. So the increase is always going to seem steeper than a customer expects by doing the basic maths.

i pay my direct debit payment each month ,in the summer this payment will be more than what i use so as i can build up some credit for the higher winter bills ,as a result when my winter bills exceed my direct debit payments i still have enough in the account to cover this without having to pay more,if at some point my credit runs out i will make a top up payment each month to meet any shortfall. this does not give ovo the right to just raise my bill when they want when im not behind in payments ,if a customer is in debit each month then thats a different point of view this is just another problem ive had with ovo my account was changed in the summer, but ovo did not update my records so my direct debit payment went into the old account it took me numerous phonecalls and emails and nearly 4 weeks just to get them to give me my money back,then they had the gall to phone me because i was in debt because of it...

Userlevel 7
+2

I’m really sorry to hear about that.

Could you check the Direct Debit Calculator in My OVO, to see whether it can recommend reducing your payments? You might be able to fix this yourself as long as your meter readings are up to date.

Userlevel 7

Thanks for the post, @enlighten me and the extra info in that most recent comment.

@Transparent’s home made chart is a really handy way to visualize the mechanic for a direct debit across a year and for any check in. but I think it needs a tweak or two. That’s why I’ve added to his comment to make it super clear:

Firstly the target is actually £0 by the contract end date. We achieve a 1 month credit buffer due to the payment being at the start of the first month. So on the 13th Jan, we want to see a vertical green line representing a payment.

As you say @enlighten me, winter usage often exceeds the monthly payment amounts. So @Transparent I’d also like to see a steeper rise in actual usage in winter, to represent this more clearly. Higher winter usage then the payment amount is fine as our members would’ve built up credit in the summer.

The only reason we’re now suggesting an increate (unless there’s a fault, in which case we can’t comment, better to raise with our Support team), is because the usage we’re seeing is actually MORE then we anticipated, meaning you’re set to miss your £0 balance at end of contract target. No one wants that.

Userlevel 7

@Transparent keen to hear what you think of my feedback. I think this chart has the potential to make all of this really clear as a visual aid.

Userlevel 7
+3

I’ll send you the master copy of the chart, @Tim_OVO. You can then forward it to a specialist in Billing Dept and tweek what needs tweeking!

Userlevel 5

Just to add my point of view.

Having a gas supply that is the reverse of normal seasonal usage, has always caused problems with the automated projected usage systems over recent years, It has High usage in the summer / zero usage over winter.

My account is always fun this time of year when the weather starts to get colder

Today my recommended DD payment has changed yet again, only a +10% increase this time, so long as the status is only flagged as recommendation & not a requirement, I’m happy 😃

Tom...

Userlevel 7
+2

Wait… Zero gas usage? Do you turn off your gas supply all winter then?

To be fair, I’m also one of those weird edge case members. Because my usage throughout the entire year is always really low (I only pull around 100 kWh of eco juice a month on average!), I always throw the number crunching out of sync when seasons change.

It is something I’m keeping a close eye on however, since I can probably use my account to help train the platform to not be so eager to fiddle with payments when it’s not needed.

Userlevel 5

Wait… Zero gas usage? Do you turn off your gas supply all winter then?

Only 1 of my gas meters is shutdown for winter, my other gas meter & boiler are working overtime

Some ancillary electrical equipment used in conjunction with the now zero gas supply is also switched off for the winter, throwing my projected electric usage out as well.

The estimated usage for the now dormant gas supply had been dropping steadily over the last couple of statements as it has not had any usage since September, but it was still about double the actual kWh.

Now with the onset of winter, the estimated usage is back up by another 30%.

Hence the need to get my account & billing in order,

Tom...