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I'm on a fixed plan - Will the price cap increase affect my direct debit amount?

  • 6 April 2022
  • 2 replies
  • 104 views

I moved to OVO earlier this year and I'm on the Better Smart Plan, I queried why my direct debit has gone up 50% this month and below is the reply. I understand if I'm using more than the original estimate my DD needs to go up but the response seems to suggest prices can change.

Hi Andrew,

Thanks for getting in touch with us. 

You are on a fixed contract but the price is not fixed the unit rate and standing charge is this means that the price can vary due to the energy market at the time and also the usage of energy.

Due to the 54% increase this would be why your DD price has increased to £146.

 

Surely the whole point of fixing is to prevent price changes? If the unit rate is fixed unless there is a change to tax surely it should stay the same?

 

I'm not understanding this explanation at all.

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Best answer by Jess_OVO 7 April 2022, 12:59

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Userlevel 7

I’m so sorry for the confusion there, @Divert2.

 

Whilst there has been a recent price change on our Simpler Energy plan, this won’t affect our members currently on a fixed plan. As you mention your unit rates and standing charges on this plan are guaranteed for the length of this contract. I’m really sorry for the agent error in advising otherwise. 

 

Whilst the price you pay per unit hasn’t changed, we’ll still review your monthly payment amount based on any changes to your projected usage figures. If you’ve recently joined OVO it may be that your actual usage figures are higher than we expected when you first joined. There’s more details on our Direct Debit review process over here:
 

 

Let us know if this helps explain things. 

Thanks for the reply Jess, that's what I thought the increase was for. Thanks for clarifying that for me.

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