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How can I cancel my Direct Debit? - I'd like to pay on receipt of my bill instead.



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Userlevel 7
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That’s fine, I think I’ve got what I need.

At first glance, it appears that everything is working and I’m not seeing any obvious faults here. However, there is one trick I know of that the Support Team can try if you’d like them to.

Try asking them to reconfigure the read schedule for your electric meter to match that of your gas meter. I’ve known cases where these pesky E470 meters somehow lose it at random, but that fix might do the trick. See if you can ask them to grab an instantaneous on demand meter reading via SMETS Commands as well. If that comes through, it confirms comms are good and adds more weight to what I think the fault might be. Oh, and you can also ask the agent to log that meter reading to your account as todays reading as well, since it can be accepted as an authorised meter reading.

Userlevel 1

Thank you. I'll pop a call in.

 

I have no issue in sending manual readings but every time I do the suggested DD rises by £2-3 🤔

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Just an update on this. We've tried to call and webchat but both were stating 90 odd in the queue. The lines are extremely busy and with working and looking after a feral 6 year old we've given up and cancelled the DD. We'll analyse the situation for a bit and pay the bill as it comes in. As it stands we're still £200 in credit and using about £120 a month for both gas and electricity. We'll pay something rather than nothing until the credit run out and just cover the bills for what we use. 

 

Hopefully these prices will reduce soon. Even both of us working are struggling to pay these prices let alone those whom are single or not working/pensioners etc. Its a very worrying situation to be living in. 

Userlevel 7

Hey @Sjsouth16,

 

I’m sorry that you had difficulty reaching our Support team. 

 

I recommend contacting our Collections team directly on 0800 0699 831. They’re open Mon-Thur: 08:00-20:00, Friday: 08:00 - 18:00 and Saturday 09:00-14:00. They will be able to set up a payment plan with you for a more affordable Direct Debit. 

 

We’ve got a great guide about the price cap increase and how we can help here: 

 

 

I hope this helps!

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I usually help out on the Eon next forum but i was browsing here and thought I could offer a new point.  Monthly DD is a budgeting mechanism designed to spread your costs over a long period typically 6 or 12 months.  It does not change, in any way, what you account will be billed.  you will always be charged your consumption times the applicable prices.  Your DD is a forecast and inevitably will always be wrong , but if you pay in too much you get that back and if you pay in too little you will have to pay that as an extra charge in the future.

 

But switching away from monthly direct debit will CERTAINLY cost you over £200 per annum (OFGEM typical Customer) extra, so think carefully about taking this step.

Hi,

 

I tried to contact OVO to pay on demand and they said it was not possible and it was extremely more expensive to pay on this plan.

 

Can someone please explain with actual numbers (kwh unit price and daily charges) how more costly it will be to pay on demand instead of paying overestimations of direct debits?

 

Thank you.

Userlevel 7
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I think @meldrewreborn might be able to figure those out. I’ve seen him do a pretty good job of it on another forum. It’s out of my skills however, sorry about this!

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I can.

 

The prices though are regional and I would need to know your region and whether you are electric only or dual fuel.

As I said before the DD is only a budgeting mechanism and over time costs you nothing, although at times your account with the supplier may be credit or debit.  But the amount you are liable to pay for the energy you consume is not changed by the level of the DD.

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As an example these are the data for the North West region (it is shown top of the OFGEM tables). VAT inclusive.  You can see that both the standing charge and the unit prices are higher on Standard Credit than for Direct Debit.  The extent of the additional cost is determined by each individual household’s level of consumption.  The data assumes that the supplier charges the maximum for the standing charge that OFGEM permits - most suppliers have done this in the past.

  Electricity   Maximum standing Charge per day £'s   Maximum charge per kWh if maximum standing charge applied £'s
Direct Debit North West   0.4326   0.5132
Standard Credit North West   0.4914   0.5406
           
           
  Gas        
Direct Debit North West   0.2849   0.1475
Standard Credit North West   0.3354  

0.1554

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The standing charge increase for gas applies to the whole country.  Standard Credit electricity Standing Charge is 12-16% greater than DD, depending on region.  Unit prices are consistently circa 5.3% greater than DD for both electricity and Gas in all regions.

Conclusion.  Standard credit is always more expensive than Direct debit.  

Well you did ask!

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From October1 2022, Standing Charges for Standard Credit are between 12% and 17% greater than DD standing charges.

 

Unit prices are circa 5.3% greater.

 

Conclusion.  Paying by Standard Credit is substantially more expensive than paying by Direct Debit in every case.

Thanks for the clarification @meldrewreborn .

The question is: can the standard credit be more expensive than the maximum cap or the maximum cap is the maximum limit someone can pay regardless of payment method?

 

Thank you.

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The caps as published by OFGEM apply to a certain level of consumption, 3,100 kWh of electricity and 12,000 kWh of gas.  At those levels (3,100 and 12,000) of consumption the prices charged by the suppliers cannot exceed the annualised figures published by OFGEM.  These then very effectively cap the unit rates which will apply to all levels of consumption. 

 

To put it another way, OFGEM publish maximum charges for set levels of consumption.  From these you can work back to standing charges and unit prices.  Then you can apply those unit prices to each customer.  Its gets very complicated because there are different rates for DD, prepayment, standard credit, Electricity and Gas and 13 different regions - in effect there is not one price cap, there are multiple price caps, plus there is an addition set for economy 7/10.  Its too difficult for the main stream media to articulate so they concentrate on the mythical average user, in the mythical average area, but using the exact amounts of OFGEMs average user, rather than delve around in the messy detail.

 

The clue is in the term price cap - its not a maximum household charge.  The more you use the more you pay, and standard credit is always more expensive than DD

With the unliveable rise in direct debit i  eed to only pay for the e ergy I've used, not for the energy ovo think I might use over a year, so how do I change from direct debits to paying a monthly bill?

Our DD was 70 a month, OVO pressured us to choose a new tariff and renew to avoid fluctuation.. its now jumped up to 259 a month and you want to increase the DD again. Its a joke how you update a customers DD by such an amount. We're not using anywhere near that amount. Our smart meter has now been switched off as it doesn't automatically send readings. My partner works away for 2 weeks at a time and it's just me and a 6 year old. No idea how the two of us can use such an incredible amount. 

I think cancelling the DD is the sensible option and pay what we use each month. 

This is what I want to do but can't find d out how

I usually help out on the Eon next forum but i was browsing here and thought I could offer a new point.  Monthly DD is a budgeting mechanism designed to spread your costs over a long period typically 6 or 12 months.  It does not change, in any way, what you account will be billed.  you will always be charged your consumption times the applicable prices.  Your DD is a forecast and inevitably will always be wrong , but if you pay in too much you get that back and if you pay in too little you will have to pay that as an extra charge in the future.

 

But switching away from monthly direct debit will CERTAINLY cost you over £200 per annum (OFGEM typical Customer) extra, so think carefully about taking this step.

Except as a pensioner on 740 a month paying 355 a month to ovo is out of the question. I also need to eat.

Just an update on this. We've tried to call and webchat but both were stating 90 odd in the queue. The lines are extremely busy and with working and looking after a feral 6 year old we've given up and cancelled the DD. We'll analyse the situation for a bit and pay the bill as it comes in. As it stands we're still £200 in credit and using about £120 a month for both gas and electricity. We'll pay something rather than nothing until the credit run out and just cover the bills for what we use. 

 

Hopefully these prices will reduce soon. Even both of us working are struggling to pay these prices let alone those whom are single or not working/pensioners etc. Its a very worrying situation to be living in. 

If I cancelled DD will that not cancell my energy supply? I can afford to pay for whatninuse each month but not what they want in DD. £355 A MONTH FROM MY PENSION OF £740 IS UNACCEPTABLE. 

Userlevel 7
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Hi,

If you wish to change method, you can just cancel your Direct Debit and the account will be forced to pay on-demand if you don’t re-instate it. Be warned however, that on average it costs around £200 a year more to pay on-demand and you will have to pay the entire bill at once every month without fail if you go down this route.

I’ve documented potential support packages in the guide below.

If you’re struggling to keep up with payments, the Collections Team may be able to help. You can reach them on 0800 069 9831.

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You bills will be based on your consumption whichever way you pay.  The prices on paying on receipt of bill are £215 higher for the average user (per annum, Oct 22 prices) so this switch could be very costly.

 

Your DD is intended to smooth your payment over an extended period, it does not increase your consumption which is the real influencer of your charges.

Userlevel 7

Hi @Mr. Robinson ,

 

That’s a really important question.

 

If you are on the Simpler Variable Plan there are two options for payment; payment on demand or by direct debit. If you cancel your direct debit you will be moved to the ‘on demand’ plan, this means you can pay on receipt of your bill. Payments can be made a number of ways including through your online account. 

 

Some customers prefer this way of managing their accounts. We do advise paying by direct debit as your rates will be cheaper, it’s automated and it avoids large spikes in your bills over winter. 

 

If you are on a fixed rate contract, the only payment option available is direct debit as that is part of the terms and conditions.

 

You mentioned you receive a pension. Have you heard of our Priority Services Register? It’s a free service which offers additional support to customers who are eligible. 

 

Here are some extra resources you might find helpful:

 

Price rises: we're here to support you

 

Here’s the latest information on rising energy prices, and how we can help 

 

Energy Bills Support Scheme

 

This page has all the information that we and our call centre team have on the Energy Bills Support Scheme right now. 

 

Ways to get financial support

 

If you’re struggling financially or you’re worried about your energy bills, we’re here to support you. Find out about the different ways we can help here.

 

I hope this helps.

Can I cancel my Direct Debit and pay each bill monthly as I get them

Userlevel 7
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Hi @martinsimpson ,

It’s not recommended as you will lose the direct debit discount, but if that’s really what you want to do then yes you can.

All existing credit in the account will be put towards future bills before you get asked to pay anything else off.

Userlevel 7
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@martinsimpson seems odd to want to pay a higher rate than you could, especially going into winter when the average DD payment could well be less than your actual usage. But you can. Other suppliers also allow variable DD payments where the DD taken is your bill amount each month. That way you still get a DD discounted rate but pay for what you use.

Paying far too much at moment even coming into winter, have tried to get it reduced but Ovo not interested

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@martinsimpson 

The charges for paying after receipt of the bill are circa £150 higher per annum for the average user than DD.  Most people don’t think that a price worth paying.  The choice though is yours.

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