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

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Hi, I have signed up for a 2 year fixed tariff commencing on 11/9. Should I cancel or will OVO have alternative rates on their site prior to Sunday, as it is fairly short notice?

Hey @Curious James ,

I’d wait for now because OVO is likely to post an update soon. In the meantime, it’s probably best to keep that fixed deal.

Thank you Blastoise186👍

Blastoise186
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OVO has already reacted positively: https://www.ovoenergy.com/

That’s definitely proof they’re working on it! We’ll find out the information as soon as it gets released publicly and might even do our own forum guides.

I’ve done loads of them however, so I think I’ll let someone else grab a chance at this one. :)

Securing energy by zapping security bugs... For that is The Blastoise Way!
M
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Martin Lewis says the relevant government minister told him those on fixed deals can switch to the Price Guarantee rates (but probably only from 1 October) without paying an exit charge. He then goes on to say an alternative might be 30% off the fixed price tariff - the same sort of percentage off that those on variable tariffs will get.

I'm afraid I don't have the ear of a government minister at the moment, (though I've met a few in my time or is that in my dreams) so I'll defer to Lord Lewis of MSE on this one. But no benefit in making a knee jerk reaction on this one.

Eon and EDF customer. Don't think smart meters are worth the expense.
Blastoise186
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For anyone interested, please see https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

We’ll post links to OVO’s announcement in this thread once we’ve seen it.

Securing energy by zapping security bugs... For that is The Blastoise Way!
A
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On the eve of the October price cap I watched OVO like a hawk, saw their fixed rates climb and my recommended direct debit payment ROCKET.

Now, on the eve of the second day AFTER Truss's 2,500 cap announcement, my recommended direct debit amount is STILL rising.

What's going on? You were eager to increase our payments in anticipation of a sharp rise, why are you slow to let us nudge our payments back down?

Blastoise186
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Hi @animald ,

I’ve been reliably informed that OVO has paused all Direct Debit reviews for now while they work through the latest announcements and changes. Once OVO is ready, you’ll get an update. That’s all I know right now.

Securing energy by zapping security bugs... For that is The Blastoise Way!
stead
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I changed mind to the recommendation, well I didn't, been cutting usage was waiting for it to get to £600 was recommended £620.thought thats close enough had the email they will auto change the recommendation went to do it and it increased to 673! Now it's recommended at £724, this changes yesterday 😮

 

I predict it'll between £400-£500 as I'm on drive anytime and a large usage is eV charging, gas can't avoid that will be the killer for me but I'm also confused by the government help on fixed rates, a fixed 17p less and 4p less for gas is still substantially higher than the variable so still a bit confused. 

 

Just guess we have to wait until October to see what's actually happening! 

A
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As if on queue, the app let me readjust my DD this morning. @stead worth having another look yourself?

nealmurphy
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I personally think lots of people look too much at the DD suggestions and not enough at the unit rates. Much easier to compare and contrast options by reviewing the rates, as a 17p/kWh reduction on a fixed tariff at 70p/kWh will be a lot different to a 17p/kWh reduction on a 40p/kWh tariff.

Then you've got 2-rate, time of use and tracker tariffs to consider. Have the government considered all eventualities or will it be left up to individual suppliers to interpret what was meant?

stead
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As if on queue, the app let me readjust my DD this morning. @stead worth having another look yourself?

Just had a look, it says my recommendation is not available right now, but if I try to change it it tells me it has to be a whole number between £673 and £2000 still 

I’ll give it a few more days! 

At least we are earing interest on the balance, had a whole £1 last bill, should have £3 credit this month !

A
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@nealmurphy what choice do people have when OVO won't let us ignore their recommendation and set below it?

nealmurphy
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@animald other than the obvious one, possibly not a lot. My advice was more generic for all energy customers, not specifically those with OVO. But it still stands as you are being charged at specific unit rates - whether your payments marry up with these costs are affected by several factors.

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I really do think a bit more patience is required from us consumers on all this.  The energy companies are having to react to a policy statement issued only 2 days ago, when the policy is due to last for 2 years.  Any problems (whether they are real or just a perception) will fade into insignificance given time.

 

Please only get onto customer services if your issue is really urgent.

Eon and EDF customer. Don't think smart meters are worth the expense.
Jeffus
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As if on queue, the app let me readjust my DD this morning. @stead worth having another look yourself?

Just had a look, it says my recommendation is not available right now, but if I try to change it it tells me it has to be a whole number between £673 and £2000 still 

I’ll give it a few more days! 

At least we are earing interest on the balance, had a whole £1 last bill, should have £3 credit this month !

For me at least the website says a recommendation is not currently available. However on the app for me there is a recommended direct debit which appears in line with the new rates. 

https://www.gov.uk/government/publications/energy-bills-support/energy-bills-support-factsheet-8-september-2022

So looks like work in progress for me at least

K
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Now that the government has set the price cap, will people not making payment by DD be charged more.

Blastoise186
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OVO has paused all Direct Debit reviews for now while they work things out. As far as I’m aware, you can disregard any previous calculations that factored in the legacy price cap. OVO’s billing platform will regenerate everything once the new data has been programmed in and you’ll get an update soon.

Securing energy by zapping security bugs... For that is The Blastoise Way!
K
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thank you

 

I had a message on  my online account to reduce my DD down from 220 to 191, this may have been done as submitting daily gas readings. But my question is will people still pay extra if they do not pay by DD

Blastoise186
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It’s possible that might be the case - suppliers will need to cover their extra costs after all. Direct Debits can be fully automated all the way through the process. All other methods require some form of manual action.

Securing energy by zapping security bugs... For that is The Blastoise Way!
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Whether you are on payment by DD, prepayment meter or pay after the event you will benefit from the EPG announcement last week.

We don’t have the full details of the capped rates yet, but normally DD is the cheapest method, prepayment is more expensive by Circa £50 per annum and paying after the event (standard credit) about £200 more.

Those who think that not paying by fixed DD will give them more control over their finances pay handsomely for that.  Some other suppliers - like Eon Next - also allow customers to pay after the event by DD and get the lowest tariff.  OVO doesn’t allow that option.  Customers do have the option to switch suppliers, prices will be virtually the same for equivalent payment types at all suppliers for the next 2 years.  In Normal times suppliers want to keep customers - these though are not normal times.

Eon and EDF customer. Don't think smart meters are worth the expense.
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This is what 

OFGEM said in their latest price cap announcement:

 

“Customers who pay by standard credit (cash or cheque) pay an additional £215 based on the higher cost for energy companies to serve them. The 24 million households protected by the price cap includes around 4.5 million prepayment meter customers. These customers pay an additional £59 compared to those on direct debit, which also reflects the higher cost for energy companies to serve them. “

 

That price cap announcement has been overtaken by events and the EPG is circa 30% lower than the OFGEM price cap.  The exact relationship between the 3 payment methods is currently uncertain, partly because the most recent standing charges from OFGEM are expected to stay the same - only the unit prices will be lower.

Eon and EDF customer. Don't think smart meters are worth the expense.
C
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Hi,

 

I am currently on the Better smart tariff and have a fixed contract until March 2023 but OVO have tried to put my Direct Debit up from £178 to £368 offering an excuse that the cap is rising. 

Can anyone confirm that the Better Smart is a fixed rate tariff and is not affected by the cap rise until after March 2023?

Coco
Tim_OVO
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Hi @coco34ymail.com and thanks for posting this question. 

 

We need to separate out the Direct Debit review from any price change. First, let’s outline what might’ve happened with your prices:

 

If your fixed prices from your ‘Better Smart plan’ are higher than the Energy Price Guarantee cap, OVO will reach out to you and advise about a move to the variable rate, Simpler. This will mean lower prices. If the ‘Better Smart plan’ has lower rates than the cap, nothing will change  for you, price wise. 

 

A direct debit review, which factors in prices and project usage, will aim to get you to £0 by the end of your contract end date if you’re on a fixed plan, or £0 after 12 months if you’re on Simpler. 

 

With that in mind, perhaps you’ve been moved to Simpler to ensure cheaper prices, and now the target end date has moved forward from March to October, resulting in a higher recommended payment amount. You’re able to adjust this yourself online, and if the recommended amount is unaffordable, our Collections team can discuss with you an mount that works: 0800 0699 831. My advice would be to wait until after ‘meter reading day’ as we’re seeing very large contact volumes. 

 

Hope this helps,
Tim

Carbon neutral - we need a community to get there! My green tech: Aclara SGM 1411-B smart meter, Chameleon IHD6
C
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I have always been on The Better fixed tariff. I can see that you are offering me me advice to move to a variable rate but in the long run works out better for me to stay on Better fixed tariff but bad for OVO as the price cap covers our fixed term.

My account is always in credit or at £0 when the new billing period starts so the £190 increase in my direct debit excuse doesn’t wash.​​​​​​

OVO have used the Russia Ukraine conflict to increase prices to an unaffordable platform and have been helped by OFGEM and the government who all in turn get a lot more revenue from this so its a win win situation for them. 

  1. I am on a fixed rate term until March 2023 and in a contract
  2. You are trying to force my direct Debit up to over double but….
  3. I’m on the fixed rate term and keep my account in credit or to £0 before the next billing period starts.

Yes I will pay slightly more now Autumn and winter are on the way but not from £178 to £368 unless you are putting prices up to over the CAP which OFGEM said you cannot.

 

Something has to give and Tim’s advice is to move to an open field to be shot at from OVO with very high Gas prices which has been caused by the Russia and Ukraine conflict…...Apparently. they may supply the gas but i’m sure they don’t supply the electric which is being hiked up over 80%.

OVO have apologised for there Error and said this shouldn’t have happened,

I will manage my account month to month and use a log burning fire so i keep my gas usage down.

Why would you advise me to gamble from a fixed rate to a rate which hasn’t been announced yet? I have a wife and 3 kids and our family household income is just £30000 with no benefits so we need to be tighter than an ants bumhole.

 

 

Coco
Tim_OVO
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@coco34ymail.com I can assure you that what we’ve done is make sure you’re paying less for your energy, from October onwards, with no risks of an increase in the foreseeable future. If it wasn’t that way, we wouldn’t be moving you to the Simpler plan.

 

The Energy Price Guarantee now ensures that everyone on Simpler doesn’t risk a jump in their prices for the whole of this 2 year period. The Energy Price Guarantee is a promise from the government that lasts for 2 years. Unlike a normal variable plan, where you risk price changes, the Energy Price Guarantee now ensures your prices won’t go up. 

 

You’ll be able to see those prices via this page: https://account.ovoenergy.com/plan

 

Carbon neutral - we need a community to get there! My green tech: Aclara SGM 1411-B smart meter, Chameleon IHD6
C
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Tim, the page you put a link to tells me that I’m paying a lot more than most who are on the Forum and have been given a fixed rate that is still higher than 2 of your price rises so OVO have failed me and your links To Energy Price Guarantee only tell me that you won’t charge me more than £2500 which is great but why are OVO asking me for £368 a month which equates to £4416.

 

I can see what rate I have been paying since March 2022 and cannot see what rate I could get to save money. I can see OVO are being an extra £400 of public money to help get them the greedy price rises also. I have eyes and can see OVO are like all the rest and will make millions if not billions off the back of this Fiasco backjed up by the Government, OFGEM and the Media and we have to pay for it whether we like it or not.

Do I Trust OVO……….No.

 

Coco

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