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Is the Direct Debit a fixed amount, even with smart meters?

  • 21 October 2017
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As a new customer and one who has normally paid my bills quarterly I have a question as regards to the direct debit method. I was under the impression that your monthly payment can change for example if you use more energy, I was also under the impression if you used less than what you pay monthly that difference gets refunded. Well ive only had two bills, the first one because of being a new customer was a fair bit short of my monthly debit amount but the full amount was taken, now for this month I received an e-mail asking for my meter readings which I submitted, on checking my account I notice it said as I had not submitted my meter readings they had used an estimate, then underneath it had my submitted readings which were less. The correct monthly amount was taken out in this instance but it shows my account as £69.00 pounds. So is this amount an overpayment from the first month plus the difference between the estimate and reading for the second month? If so I thought this got re-credited? I'm not quite sure how this system works. Thanks.
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Best answer by Tim_OVO 2 January 2018, 17:27

Similar question from both of you @sjcsystems @Roman Chmura

Your smart meters send us your readings so we always bill you accurately. These charges are outlined in your statements. Your Direct Debit is a fixed amount that aims to cover this usage all year round. It will remain fixed unless it looks like a change is needed, which is what most customers want.

The issue is that your usage won't tend to be equally spread across each of the 12 months of the year. Most of your costs will be in the winter. Customers don't want to have a high Direct Debit in the winter and a low Direct Debit in the summer. People's income tends to be fixed all year round, and a Direct Debit that stays the same is ideal. This will mean building up credit in the summer and eating into that credit in the winter.

You can view and change this Direct Debit at any point via My OVO here: http://ovoener.gy/myovo.

Tim

Updated on 12/07/2019
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As a new customer and one who has normally paid my bills quarterly I have a question as regards to the direct debit method. I was under the impression that your monthly payment can change for example if you use more energy, I was also under the impression if you used less than what you pay monthly that difference gets refunded. Well ive only had two bills, the first one because of being a new customer was a fair bit short of my monthly debit amount but the full amount was taken, now for this month I received an e-mail asking for my meter readings which I submitted, on checking my account I notice it said as I had not submitted my meter readings they had used an estimate, then underneath it had my submitted readings which were less. The correct monthly amount was taken out in this instance but it shows my account as £69.00 pounds. So is this amount an overpayment from the first month plus the difference between the estimate and reading for the second month? If so I thought this got re-credited? I'm not quite sure how this system works. Thanks.

Hey bellevueace,

As a Pay monthly customer, you’ll pay a fixed amount each month. When we issue you with a bill, it will show you exactly how much you’ve used and in turn, the cost.

If your monthly bill is lower than the Direct Debit you’re paying each month, we can look to change your Direct Debit and refund any excess credit (one month's Direct Debit).

Hope you don't mind but I've changed the title of your topic to make it more searchable.

Lucy
Hello Lucy, how does this actually work ? My direct debit is about to be taken from my bank account but it is far, far higher than what my smart meter says my usage is ?

Is it not the case that with a smart meter that I get billed for exactly what I've used, no more, no less ? Shouldn't the direct debit amount change every month to reflect actual usage and not be fixed ?

I don't see the point of a smart meter if I'm wrong.
Thanks Lucy
So why isn't the reading I submit actually used? its always submitted about a week before the payment is taken, as requested by OVO.
Thanks.
Hello,
I have a smart meter for a few months but I still pay the same money every month. Why is that? I'd like to pay as much as a use electricity.
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Similar question from both of you @sjcsystems @Roman Chmura

Your smart meters send us your readings so we always bill you accurately. These charges are outlined in your statements. Your Direct Debit is a fixed amount that aims to cover this usage all year round. It will remain fixed unless it looks like a change is needed, which is what most customers want.

The issue is that your usage won't tend to be equally spread across each of the 12 months of the year. Most of your costs will be in the winter. Customers don't want to have a high Direct Debit in the winter and a low Direct Debit in the summer. People's income tends to be fixed all year round, and a Direct Debit that stays the same is ideal. This will mean building up credit in the summer and eating into that credit in the winter.

You can view and change this Direct Debit at any point via My OVO here: http://ovoener.gy/myovo.

Tim

Updated on 12/07/2019
I am confused about this too.
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@Ratlady - feel free to ask any more questions below if Tim's answer didn't clear everything up!

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