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Estimated Annual Consumption (EAC) - What this means and how it affects your OVO Energy account?

Estimated Annual Consumption (EAC) - What this means and how it affects your OVO Energy account?
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30 replies

  • Carbon Cutter****
  • 25 replies
  • December 20, 2024

Yes, luckily the direct debit has started to come down again from a point where I was paying nearly three times the actual monthly bill.

I think the previous owners of the property had a huge consumption which won’t be helping things.


Firedog
Plan Zero Hero
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  • Plan Zero Hero
  • 2008 replies
  • December 21, 2024

Yes, but as I wrote, “any major change - like having a smart meter exchange - will result in setting the FAC to an ‘industry standard’ supposedly matched to your location and household.” Any historical data, whether yours or previous occupants’, is ignored, so you were presumably put on a ‘typical’ FAC. Is yours wildly different from your consumption over the last 12 months?  

This article is quite a good guide, although it doesn’t cover the meter exchange scenario I’ve mentioned here: Estimated Annual Consumption (EAC) - What this means and how it affects your OVO Energy account? | The OVO Forum

The FAC should be your previous year’s usage, but if that’s no longer available, the EAC will be used instead, modified by your actual usage from time to time. The EAC should also reduce as readings are submitted, so it shouldn’t take a whole year for the FAC to come down to a realistic figure. Keep sending those weekly readings to help the process along!

 


  • Carbon Cutter****
  • 25 replies
  • December 21, 2024

Yes as previously said it is wildly different from my actual consumption. At the start of the contract the daily estimates were more than three times my actual usage.

If that is typical for a modern 4-bedroom house then it’s no wonder peoples electricity bills are so high.

When I moved in (before the meter exchange) I got an invitation letter from the previous supplier, their price estimate was based upon an annual consumption of 6,994 kWh - I’ll be lucky if I use 2,000 kWh in a year. That is what makes me think it’s based on the property history. Previous owners had two kids and a hot tub so must have been paying a fortune.


Firedog
Plan Zero Hero
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  • Plan Zero Hero
  • 2008 replies
  • December 21, 2024
Retroanaconda wrote:

Yes as previously said it is wildly different from my actual consumption.
 

Sorry, I didn’t see that you’d mentioned the FAC being too high anywhere ...


Emmanuelle_OVO
Community Manager
  • Community Manager
  • 2561 replies
  • December 23, 2024

Hey ​@Retroanaconda 
 

Retroanaconda wrote:

When I moved in (before the meter exchange) I got an invitation letter from the previous supplier, their price estimate was based upon an annual consumption of 6,994 kWh - I’ll be lucky if I use 2,000 kWh in a year. That is what makes me think it’s based on the property history. Previous owners had two kids and a hot tub so must have been paying a fortune.

 

It sounds like this is the issue. The more readings you submit the more accurate the estimated usage will be. 

 

Estimated Annual Consumption (EAC) - FAQs

 

What is an EAC?

 

EAC stands for Estimated Annual Consumption and applies to the amount of electricity we expect you to use each year. If you don’t have smart meters installed or these aren’t currently sending regular readings, we use this EAC figure to forecast the electricity usage at your property over the next 12 months.

 

 

How do we calculate your EAC?

 

The EAC is calculated using the historical readings submitted for your home (which might cover the time before you moved in). As your EAC is re-calculated each time we share your meter readings with the energy industry, the more readings you submit, the more accurate this figure will become.

 

 

Why do we use an EAC?

 

  • To calculate your Direct Debit 
  • Estimating readings when we have no 'actual' readings
  • Estimating consumption when a meter is faulty

 

What is Usage projection?

 

Usage projection is a figure produced by our billing system, that uses smart meter readings (if available) to project the usage for you over the next year. If you don't have a smart meter, it uses any actual meter readings obtained over the past 12 months.
 

If we don't have any actual meter readings within the last 12 months, we'll use your EAC and AQ (the gas equivalent of EAC) to calculate your usage projection.

 

Usage projections will be used for Direct Debit check in’s and renewal quotes.

 


How do we update an EAC?

 

Whenever a new reading is submitted to the energy industry, a new EAC is calculated for us to use.

 

If your EAC is incorrect, you should keep sending us regular readings. As the EAC is calculated based on the entire reading history of an electricity supply (MPAN), submitting regular readings over a period of time will gradually change the EAC until it matches the member's usage. The better alternative is to get a smart meter!

 

There are some exceptions where we may amend the EAC in other ways (e.g. when there has been a sudden and large increase/decrease in the EAC that doesn't match the most recent readings) but these wouldn't be applied without supporting readings.

 

We can't contact the industry to say we want the EAC amended, so all we can do is ensure the readings are correct on an account. If you’re not sure about how we’ve calculated your Direct Debit, the best thing to do is ensure we have accurate meter readings, and book a smart meter exchange

 

What is the typical annual usage in the UK?

 

As of October 2023, Ofgem has confirmed that a typical household in Britain uses 2,700 kWh of electricity (single rates, for dual rate it’s 3900 kWh) and 11,500 kWh of gas in a year. 

 

Has this raised any more annual usage questions? Comment below as we’re always happy to help de-mystify things! :slight_smile:


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