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Direct Debit review - will the recommended payment amount factor in the £400 government energy bills support scheme?

  • 27 August 2022
  • 98 replies
  • 1320 views

Will the increase from the Ovo bot on my DD from x to y take into account the governments £400 payments from October.

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Best answer by Jeffus 27 August 2022, 18:24

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From the OVO website

 

If you pay by Direct Debit

You’ll receive your discount as a rebate rather than a credit to your bill. This means you’ll carry on paying your full Direct Debit amount. Once the payment has cleared, we’ll refund the monthly discount amount to your bank account within 5 working days. If you cancel your Direct Debit, or it fails, we’ll add your discount as a credit to your energy account instead. 

You’ll get your discount every month, even if you don’t get monthly statements. You'll see confirmation of the discount on your next statement. 

For example, if you pay your Direct Debit on 15 October, and it reaches us on 17 October, you'll receive the discount in your bank account by 22 October.

My current direct debit for gas and electricity is £202. My billing year will end in June 2023 and OVO have indicated that I need to increase my monthly payment to £348. Will further increases be required to my direct debits  for the price caps in January and April 2023 or will the £348 payment be sufficient to cover increases in January and April?

many thanks

Brian Hockey

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Hi @Brianhockey ,

Bit of a tricky one to be honest. If the prices keep going up the way they are now, then yes it’s definitely possible that a further DD increase may be necessary. If prices drop however, OVO may be able to lower your payments automatically. Only time will tell...

Thanks for your advice. Briab

Hi, 

When our fixed rate ended in March 2022, We decided to remain on the default variable tarrif for our combined energy and so far, this has worked out to be cheaper than fixing.

 

Following the recent price cap rise, for October, the in app algorithm advised that our direct debit was increasing from Octoberr to cover our annual utility usage. we are currently £500 in credit and always use less energy (including S/C) than the monthly direct debit 

 

Does the proposed direct debit increase factor in the £400 government discount or has that yet to be factored into the estimated Direct debit cost.?

 

thanks 👍

 

 

Userlevel 3

No, it has not been factored in - and it may not be. Hopefully OVO will let us know how it intends to handle the £400 soon.

thanks rjs

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Hiya!

Everything you’re looking for has been documented between both my guide and also on official pages in the links from it. Check it out at

Enjoy!

thanks Blastoise, 

I note from the guidence attached that the £400 government discount is not scheduled to be applied until October 2022.

It logically follows then that the recent in-app request to increase my direct debit does not yet recognise the government discount and is therefore not an accurate reflection of projected annual utility cost going forward (Not withstanding the possibility that the new PM may rescind the offer) 

 

I appreciate that the algorithm can allow adjustments to Direct Debit payments during the annual billing cycle but we'd prefer to wait until we know the facts rather than increasing our DD payments on an inaccurate projection.

Is it permissable to ignore the current in-app request to increase our DD until the Government discount is applied to the projected  annual cost analysis in October? 

As previously stated, we are currently £500 in credit and always use less energy, including S/C than the DD amount. 

 

thanks 

 

 

 

have received message saying that by end of year paying my existing DD I will be in debt to OVO, anyone know if the calculation made includes any gov payments and also being in credit on DD

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have received message saying that by end of year paying my existing DD I will be in debt to OVO, anyone know if the calculation made includes any gov payments and also being in credit on DD

Hi @nudge

I don't work for OVO, i am just a customer like you. Some of us post if we think we can help.

The government payments are not taken into account when calculating your direct debit payments. Basically your direct debit will remain the same and OVO will put the government help in your bank account. 

As for your other question, yes the direct debit calculator does take account of any credit you have. 

https://www.ovoenergy.com/energy-bills-support-scheme

If you pay by Direct Debit

You’ll receive your discount as a rebate rather than a credit to your bill. This means you’ll carry on paying your full Direct Debit amount. Once the payment has cleared, we’ll refund the monthly discount amount to your bank account within 5 working days. If you cancel your Direct Debit, or it fails, we’ll add your discount as a credit to your energy account instead. 

If you are in any doubt cancel d/d and set up a standing order through your bank  answering  your question  no it doesn't  take government payments into account and they are only guessing how much energy you'll  use hope that helps

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If you are in any doubt cancel d/d and set up a standing order through your bank  answering  your question  no it doesn't  take government payments into account and they are only guessing how much energy you'll  use hope that helps

@nudge It is a free world, but personally I would definitely not recommend cancelling a direct debit and the potential risk to your credit rating further down the line. The first failed direct debit may automatically appear on your credit file as a missed payment. It is up to you, but i don't think it is helpful to keep posting about cancelling direct debit. 

You can obviously switch to paying on receipt of bills if you contact OVO and you are on the Simpler energy tariff. But just be aware the rates are higher if you pay on receiving a bill rather than by direct debit. 

Above all else if people are struggling with their bills they should speak to OVO about how they can help. 

Userlevel 5

Hi @Moorguide,

Welcome to the OVO online community!

Great to see our community members giving you some tip-top advice here. The direct debit recommended on the online account doesn’t currently factor in the £400 government grant. Check out this really helpful guide about how direct debit reviews work. 

 

Here is some information about the energy bills support scheme and how this will be paid. The £400 discount will be spread over a 6 month period, from October 2022 to March 2023. You’ll receive £66 in October and November, and then £67 every month until March. 

 

As we don’t yet know what the future price cap increases may be, it is best to change your direct debit to the recommended amount. You’ll receive your discount as a rebate rather than a credit to your bill. This means you’ll carry on paying your full Direct Debit amount. Once the payment has cleared, we’ll refund the monthly discount amount to your bank account within 5 working days. 

 

I hope this helps!

I have been told I need to increase my direct debit by £80 per month. From October we will receive £400 pounds in instalments until March. Has Ovo taken this additional into consideration and if so should I only increase by £20 per month

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Hi @Cherripie ,

Everything you’re looking for can be found in my guide at 

As well as the various links to resources in my guide. The Energy Bills Support Scheme payments of £400 are being applied as rebates rather than discounts for Direct Debit members, so you’ll still need to pay the full amount initially - you’ll get the difference back later.

Hope this helps.

Thank you for your information but please bear with me. I understand in October and November £66 will be applied to the account. In December to March a monthly payment of £67 will be applied to the account totalling £400.

When calculating my direct debit has Ovo included this payment? 

I am paying £136 per month. I am being told to increase my direct debit to £224. This amount should see me in credit in 12 months time. 
if I only increase by £21 plus the £67 plus the £136 the total payment will be the required £224 which Ovo requires to retain my account in credit?

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You’ll still need to pay the £224 a month as the EBSS has been factored in but forms part of your monthly payment. It’s not in addition to it so your DD will need to remain at £224 and you won’t be able to increase it by just £20 a month.

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in effect your DD will be £224 less£67/£66 for the six months the discount is available.  But the gross level of £224 remains.

Thank you both. I suppose I will have to bite the bullet, knit scarves and hats and buy more hot water bottles and less food. 

It looks to me that everyonles payment

Is  being raised to the price cap regardless of how much you use I have just calculated mine and it is exactly that

Including government payment and money overpaid

I don't trust their calculations earlier in the year my electricity was increased they told me at that time my electricity for year would be £750 but wanted £83 a month almost £1000 I know prices are goi going up but surely not everyone shod be up to the cal

 

 

 

 

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Not everyone’s payments are being raised - mine are actually being dropped due to some unique circumstances surrounding my account.

The easiest way to make sure the calculations are accurate is always going to be with a Smart Meter set to either Daily or Half-Hourly readings. The second easiest method is a Smart Meter set to Monthly readings. Otherwise, if you don’t have a Smart Meter yet, you’ll need to submit regular meter readings, ideally on a weekly basis for at least three months so that OVO’s billing platform can get enough data to reliably recalculate everything.

The more data you feed the system, the more accurate it can be with calculating your payments.

Has anyone tried for 2 hrs to get an answer and when you do and mention you want to discuss your DD they immediately cut you off?

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Hi @Burford22 ,

I’m Blastoise186, one of the forum volunteers here. I can’t access your account directly, but I might be able to help depending on the question.

What was it you wanted to ask OVO about in relation to your Direct Debits? If it’s something I can answer, I’ll try to help, but if I can’t then I’ll try to point you in the right direction.

I wanted to ask about my DD being increased and was it necessary as for the next 6 months we will be receiving around £60 in to our accounts and that I’m also in credit on my account. I don’t object to having to pay more but just wanted some advice. My DD is to be increased by £40 a month. 

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