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E
Rank 1
EbSax
Rank 1
February 4, 2023
Solved

Monthly direct debit unaffordable for me

  • February 4, 2023
  • 11 replies
  • 1260 views

In July 2022, I was moved to the simpler energy variable plan (electricity only), as my previous fixed 2 year plan had ended.  I didn't have any choice in this as I couldn't afford any other fixed rate plan on offer.  I’m on a Smart Meter.  Direct debit payments were steadily increased until in Jan this year I reached the limit of what I could afford.  I cancelled my direct debit, paid the Feb bill by credit card a day early and have now set up a Standing Order for the maximum I can afford to start 1st of next month.  My latest usage tells me I’m in credit to the tune of nearly £50.  I was paying 0.32p per kwh but since my DD was cancelled Ovo have increased this to 0.36p which of course has only made my life harder.  You can’t get hold of anyone to speak to and the only time I managed that they were utterly useless.  I’ve sent emails but have never had a response or even an acknowledgement, the (edited by moderator) Chat Bot is useless.  I have to go with an SO because I need to manage my finances, not OVO.  Bills are being paid but I’m being penalised and there doesn’t seem to be anything I can do about this except wait for 8 weeks and then speak to OfGem.  Is anyone else having this kind of a problem?

Best answer by Jeffus

Updated on 16/06/25 by Ben_OVO 

 

 

Customer support package and where to apply. 

 

Hi @EbSax 

I am afraid by cancelling your Direct Debit, you were then put on a higher rate automatically.

I suggest you call the OVO Collections team and see if they can work out a payment plan that you can afford on direct debit. By getting back on a Direct Debit plan they should put you back on the lower direct debit rate. 

0800 0699 831

The Collections team should work with you to come up with a payment plan you can hopefully afford. 

Don't use the normal phone number or chat, use the OVO Collections number in this situation. 

Unfortunately the OFGEM rule say suppliers can charge more if you don't pay by Direct Debit. You are simply being charged the higher rate that Ofgem themselves set. So you can't complain about the higher unit rate if you cancelled the DD. 

See if the Collections team can come up with a reasonable DD for you to pay off any debt over a reasonable time. 

If you have put in a complaint, you don't take it to Ofgem after 8 weeks if you are not happy. Ofgem don't look at individual complaints, you take your complaint to the Energy Ombudsman.

The cost of energy is very likely to go up again on 1st April before falling hopefully on 1st July. Fingers crossed things will get easy for us all then.

Please do ask any questions and we will  see if we can help. 

I don't work for OVO, i am just a customer like you

11 replies

juliamc
Rank 20
juliamc
Rank 20
February 4, 2023

I think all you can do now is speak to the Collections team who can set you up a payment plan that you can manage. I’m afraid that will mean another phone call. I’ll find the collection team number…

Jeffus
Rank 20
JeffusSolved
Rank 20
February 4, 2023

Updated on 16/06/25 by Ben_OVO 

 

 

Customer support package and where to apply. 

 

Hi @EbSax 

I am afraid by cancelling your Direct Debit, you were then put on a higher rate automatically.

I suggest you call the OVO Collections team and see if they can work out a payment plan that you can afford on direct debit. By getting back on a Direct Debit plan they should put you back on the lower direct debit rate. 

0800 0699 831

The Collections team should work with you to come up with a payment plan you can hopefully afford. 

Don't use the normal phone number or chat, use the OVO Collections number in this situation. 

Unfortunately the OFGEM rule say suppliers can charge more if you don't pay by Direct Debit. You are simply being charged the higher rate that Ofgem themselves set. So you can't complain about the higher unit rate if you cancelled the DD. 

See if the Collections team can come up with a reasonable DD for you to pay off any debt over a reasonable time. 

If you have put in a complaint, you don't take it to Ofgem after 8 weeks if you are not happy. Ofgem don't look at individual complaints, you take your complaint to the Energy Ombudsman.

The cost of energy is very likely to go up again on 1st April before falling hopefully on 1st July. Fingers crossed things will get easy for us all then.

Please do ask any questions and we will  see if we can help. 

I don't work for OVO, i am just a customer like you

    E
    Rank 1
    EbSaxAuthor
    Rank 1
    February 4, 2023

    Hi @Jeffus 

    Very many thanks for your help.   I'll ring the collections team and see what can be arranged.

    E
    Rank 1
    EbSaxAuthor
    Rank 1
    February 4, 2023

    Hi @juliamc 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Thank you for your help. I havevthe number for the collections team now and will give them a call to try and sort this out.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

      Jeffus
      Rank 20
      Jeffus
      Rank 20
      February 4, 2023

      Hi @Jeffus 

      Very many thanks for your help.   I'll ring the collections team and see what can be arranged.

      They are legally obliged to help and work with you on a payment plan, which will spread your payments out and ideally make them more affordable now until the cost of energy hopefully starts to fall. 

      It may not be perfect obviously but worth chatting to them to get a Direct Debit going again if at all possible. 

      Monday will be very busy i am sure just to warn you. 

      Good luck @EbSax 

       

        Firedog
        Super User
        FiredogSuper User
        Super User
        February 4, 2023

        There is another possibility, especially for those determined to live within their means. Despite what you may have read recently about the evils of pre-payment, you may find that this would be appropriate for you; the rate per kWh of electricity is currently about 3% lower on average than that for Direct Debit customers - and getting on for 12½% lower than your current tariff. The standing charge is a bit higher, but the point at which it begins to make financial sense for a Direct Debit customer is around 1850 kWh per year; anything above that and pre-payment should be the cheaper option. Since you have a smart meter, it shouldn’t be difficult to make the switch, and it ought to be relatively simple to manage. 

        You can compare the maximum (EPG) rates on this page:  Energy Price Guarantee: regional rates, January to March 2023 - GOV.UK. If you’re not sure which region you belong to, the table on this page will help.

        Once you’ve digested this, you may find it worthwhile to explore this option when you eventually manage to get through to OVO. It would be helpful to us and other users in a similar situation if you could come back here and tell us what you found out.

         

        Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
          Jeffus
          Rank 20
          Jeffus
          Rank 20
          February 5, 2023

          There is another possibility, especially for those determined to live within their means. Despite what you may have read recently about the evils of pre-payment, you may find that this would be appropriate for you; the rate per kWh of electricity is currently about 3% lower on average than that for Direct Debit customers - and getting on for 12½% lower than your current tariff. The standing charge is a bit higher, but the point at which it begins to make financial sense for a Direct Debit customer is around 1850 kWh per year; anything above that and pre-payment should be the cheaper option. Since you have a smart meter, it shouldn’t be difficult to make the switch, and it ought to be relatively simple to manage. 

          You can compare the maximum (EPG) rates on this page:  Energy Price Guarantee: regional rates, January to March 2023 - GOV.UK. If you’re not sure which region you belong to, the table on this page will help.

          Once you’ve digested this, you may find it worthwhile to explore this option when you eventually manage to get through to OVO. It would be helpful to us and other users in a similar situation if you could come back here and tell us what you found out.

           

          You would still have to work out a plan with OVO to pay off any current debt so allow for that in anything you work out. You need to make sure you would have money to put in the meter as well as pay off the outstanding OVO debt. This may be very difficult for you now in winter. 

          Also be very careful with pre payment meters that you save up enough money to get through the winter months. There are a lot of people going cold on pre payment meters as they didn't. That is my biggest worry if you go on a pre payment meter, that you go cold in winter or end up borrowing money at high interest rates to be able to put money into pre payment meters. This does happen unfortunately. 

          Just be very careful you don't get into high interest loan debt to put money in a pre payment meter which isn't unusual.

          Hope it all works out for you @EbSax 

          Firedog
          Super User
          FiredogSuper User
          Super User
          February 6, 2023

            

            @EbSax 
          … You need to make sure you would have money to put in the meter as well as pay off the outstanding OVO debt.  

           

          @Jeffus Did you miss the bit where Eb wrote My latest usage tells me I’m in credit to the tune of nearly £50”? 

          This is where having a smart meter can really help. The online account will give a good idea of how much energy is being used each month, so armed with this, and the cost per day and per kWh, it should be possible to work out how much to top up by to cover the coming period. 

          Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
            Jeffus
            Rank 20
            Jeffus
            Rank 20
            February 6, 2023

              

              @EbSax 
            … You need to make sure you would have money to put in the meter as well as pay off the outstanding OVO debt.  

             

            @JeffusDid you miss the bit where Eb wrote My latest usage tells me I’m in credit to the tune of nearly £50”? 

            This is where having a smart meter can really help. The online account will give a good idea of how much energy is being used each month, so armed with this, and the cost per day and per kWh, it should be possible to work out how much to top up by to cover the coming period. 

            I suspect the credit may already be gone by now or shortly. I did see it. 

            If they go on a pre payment meter they need to be careful about missing out on fixed rate deals when they are reintroduced. It is just not as easy to switch. 

            I am just not convinced a pre payment meter is the right choice personally. 

             

             

            C
            Rank 2
            cooper
            Rank 2
            March 18, 2025

            hi i really dont know where to start !!our bill is £5,000 reason is we was paying our direct debit and it suddenly shot up with no warning ovo kept saying its the usage on the house well we got ovo to check useage and guess what everything is fine had a smart meter and this is where is suddenly went wrong have switched it off now .aslo my husband has heart failure and is in last stages of it today i contacted ovo told them we can not afford £650 per month but we can afford £ 300 guess what told us all they could do is hold account for  7 days i send you have a dying man here and they came back with go to stepchange cant do that as have iva against us aslo they said letters will keep coming out i said they have no compassion or repect please any thoughts on this 

             

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