Multiple issues since migrating from my fixed tariff.
Since my Fixed rate deal expired in November last year I have experienced problem after problem with the level of my DDR payments, Meter readings being ignored and my Anniversary date being extended by 4 months.
At the outset on the variable rate tariff, my projected usage was estimated at 40% more than previous years (We have been OVO customers for 5+ years). I carried out detailed projections of my own, including the outrageously increased standing charges, and arrived at a monthly figure that I felt would comfortably cover our annual usage. Several phone calls later resulted in their agreeing my figures and reducing my DDR payment to the level I requested. They gave me a small compensation payment, which I gave to charity. 3 weeks later, I received an email informing me that my DDR payments were going to be increased again! This has been repeated in spite of calls and agreement to leave the payment unaltered. Why?
I then discover, following another email notifying me of another intended increase to my DDR, that my anniversary date (anniversary meaning 12 months) has moved from November 2023 to March 2024, which then of course adds a 2nd winter quarter to the equation, further confusing the issue. No-one at OVO can explain why or reset it. Why?
I now find that my most recent bills have used estimated readings to calculate the cost in spite of my submitting readings on the due date every month, which are confirmed on the readings page and even quoted on the bills along with the estimated readings. Again, no-one can offer an explanation or correct the bills, only that ‘it will all come right on the anniversary date’, which is wrong itself. Why?
I have spent hours on the phone and writing emails to no avail.
Any help would be gratefully received before I lose my sanity.
Page 1 / 1
Hi @Pipmeldrew
Welcome to the customer customer forum, i am just a customer like you, so this is my personal experience built up over several years on the forum. The OVO moderators may disagree with some things i have written and as i am not an OVO employee it is impossible for me to get everything correct all the time.
No one on the customer forum can access your account, including the OVO moderators so no one here will be able to give you personalised responses.
Honestly, if you are now out of your fixed contract and are getting frustrated, then consider switching to another supplier. The faster switching service means that now in normal circumstances a switch is meant to happen in 5 days.
Here is some general information around the points you have raised. Some or all of this you may already know. I hope it helps, feel free to ask follow up questions. I am sure one of the regular posters or OVO moderators will be able to provide some general advice on most things.
1. No Anniversary dates on variable plans. There are no anniversary dates on variable plans. They are rolling plans. You can see this on the plan page. Here is mine for example. There is no such thing as extending anniversary dates on variable plans. They have no end date or anniversary date.
This works much better if you have a smart meter, it doesn’t work as well if you only submit one reading a month.
This is automatically updated as the system sees how much you use.
There is a bit more about it here
There is no way for OVO staff to manually adjust the Future Annual Consumption.
The figure is calculated based on rolling data over a longer rolling period than 12months, so your comment about the 2nd winter period being added is completely normal. I haven’t heard of anyone managing to recreate exactly the same number manually ever.
3. Meter Reading.
I assume you don't have a smart meter, if so i suggest you think about getting one if you can. This is the easiest way to sort out the issues with the date you submit meter readings and should make the Direct Debits more accurate.
4. Direct Debits Fixed vs Variable plans
These are worked out completely differently on fixed vs variable plans.
There is no Anniversary date with variable plans when your balance will reduce to zero.
A. On fixed plans the DD level is worked out to leave you with a zero balance at the end of the plan
B. On a variable, the DDs are worked out on a continually rolling 12 month basis.
5. Direct Debit freezing
The only reliable way to freeze a DD at a lower level is to call the collections number rather than the Support number.
Collections have more flexibility. But even then you can only freeze your DD for 3 months, then do it again for a second time after that.
0800 0699 831
Make sure you explicitly ask collections to freeze your Direct Debit for three months, else it may not happen.
I wouldn't bother trying to do this via the normal support phone number.
If your DD is so high that you build up what you think is too much credit, you can call collections and ask for a refund of up to 100% of your balance on a variable plan, but i wouldn't recommend that much. Obviously any refund may impact your recommended Direct Debit.
Ofgem are engaging with OVO about direct debits to secure improvements or adequate reassurance of compliance generally. OVO were one of only three suppliers in this position at the time of this latest update from the regulator Ofgem.
6. Timing of manual readings for bills.
There is no easy answer to this. Try searching for similar threads on the forum to get a gist of other examples.
Basically you would be better off getting a smart meter if you haven't already. That is the only real solution.
Apart from that, you could try submitting readings a few days around the due date.
Then even if the bill has an estimated reading, it will be based on a very recent manual reading. There is no way to change this.
There is no way to completely guarantee you won't see an estimated reading on a bill in my experience on the forum if you don't have a smart meter. Although it won't make a difference how much you are charged over a longer period.
7. Emails.
OVO have been gradually removing emails as a communication mechanism, so I wouldn't recommended using it going forward for anything with OVO. You may stop getting timely or any responses.
8. Standing charges
These have increased for everyone on variable plans and people coming off fixed plans. Covering the costs of 28 failed energy companies, investments for net zero and inflation etc. mean the days of low standing charges are perhaps gone forever. It is an industry wide challenge not limited to OVO. It may well continue to increase.
Assuming you are on the variable plan, Ofgem will release the price cap changes on 25 May 2023 for the 1st July.
So we will get some idea what ovo will charge from 1st July then in terms of standing charges and unit rates.
But will have to wait till ovo release their own actual rates before the 1st July.
Anyone on variable plans will see rates change every 3 months, this use to be every 6 months.
9. Formal complaint
If you are not happy with anything OVO have done you can always raise a formal complaint if you haven't already.
If you are then still not happy after 8 weeks you can ask for help from the Energy Ombudsman. You can also ask OVO for a deadlock letter within the 8 weeks which they may provide.
An excellent explanation of everything Jeffus. This should be ‘pinned’ somewhere so everyone who is unhappy with interactions with OVO, whether via bills or customer service, can read it first.
Anniversary: 12 months from a specified start date. During the 1st 4 months of the variable contract, my anniversary date was correctly quoted as November 2024, then it changed. No explanation.
Irrespective of the red herring of a ‘rolling contract’ the monthly DDR payments should and always have been, until this crisis, based on the projected usage over 12 months from a start date, otherwise OVO are trying to set payments that do not accurately reflect that. i.e usage February through April, significantly lower than previous quarter usage, but calculation made assuming previous 3 months usage at a higher rate.
Quote: “B. On a variable, the DDs are worked out on a continually rolling 12 month basis.” This is utter nonsense. Anniversary=12n months from a start date. If OVO wish to use your definition under the guise of a rolling contract, then drop the word Anniversary.
Also, the Anniversary date, which terminology is used by OVO when quoting the figure they claim your DDR should be set at, is also distorted by an ‘Anniversary date’ 16 months from the commencement date. This, of course adds another winter quarter to the ‘Annual’ usage, which is false and leads to a demand for an inflated DDR payment.
Regards meter readings, I refuse to have a SMART meter installed, having read and know of too many horror stories, some that are still ongoing. My meter readings are submitted on the same day each month, I even get an email from OVO to remind me, they are acknowledged by OVO and appear on my account that same day, as do all the readings. So why the estimates? Unless this is a deliberate attempt to force a SMART meter on me.
As for standing charges, I fail to see why consumers should pick up the tab for failed companies. As for emails, I have seen no information from OVO regards this, in fact they continue to email me each month.
Switching: I investigated switching but found that all suppliers were declining to accept new customers because of the energy cap. OVO are fully aware of their privileged position of being a privatised monopoly and, in my opinion, abusing it. I am usually a very loyal customer and have stayed with OVO for many years, but that works both ways.
AS for the Ombudsman, I have no faith in a toothless organisation. OVO and I have not reached an impasse regards these issues, they just fail to explain them or correct them.
To me, the issues I related are all valid and should be easy to correct, but OVO seem incapable of this, and that is a worry to me, as it should be for all customers.
No offence, but I’m struggling to accept that you are not employed in some capacity by OVO.
Hi @Pipmeldrew
In case it helps.
1. Switching
Here are a few suppliers you can switch to today online for example
By law suppliers cannot refuse to accept someone on their default tariff, but there was a time when it was very difficult and you had to phone up as all the online tools were removed and suppliers didn't make it easy or obvious to see you could switch.
2. Standing charges
If you are unhappy what the government has done with standing charges, here are a few things you could try. I have done this for different things in the past.
A. Write to your local MP, they often take up things like this depending on their own beliefs.
I obviously don't know what your experience of Ombudsman in general are. Mine is very positive in terms of getting things sorted generally. Of course your experience may be very different. There are lots of examples on the forum. The search bar is useful to find lots of information if you are unsure of any OVO processes.
Have you delt with the Energy Ombudsman in the past?
4. Smart Meters
Although not mandatory now, suppliers are under no obligation to provide a non smart meter when your current meter goes end of life in terms of certification or when in breaks.
Do you know how old your current meter is?
So everyone will end up with a smart meter in a number of years time. It is just a matter of time.
More and more tariff are only available if you have a smart meter
All the schemes over this winter that paid people to reduce energy during peak times required a smart meter.
The net zero agenda to save the planet will need smart meters to encourage and provide financial incentives to people to switch their usage away from peak times when there is reduced green energy.
It will end up costing you more over time if you don't have a smart meter.
Obviously up to you at the moment.
5. OVO
I don't work for OVO and I regularly call out issues, help people with their issues and sometimes recommend other suppliers.
I am happy to help you if you wish or if you would like me to stop posting what I think may be helpful then just let me know. I won't be offended.
This is primarily a customer forum where customers choose to help each other.
6. Ideas
If there are things you think OVO should do differently there is an Idea section on the forum
If you want personal responses from OVO you are better off posting on the official OVO Facebook or Twitter pages. Unlike this forum, the OVO staff there can access your account.
OVO use to promote their email address to contact them, but this was removed so they can focus their support via other methods. So many emails now simply get an automated response.
The estimated reading on your bill is nothing new or unique as you will see from the above thread which is 6 years old. It is raised regularly on the forum and via OVO. Nothing has changed in the last 6 years. I have never heard of any plans for OVO to change it over the years.
It is obviously up to you, but I fear it will impact your sanity as you mentioned in your first post if you spend a lot of time questioning the estimated readings as you can see in the above thread from 6 years ago.
The OVO live billing is unique amongst suppliers.
10. Direct Debits.
Here are some potentially useful threads on direct debits
If you use the search bar you may find other existing content that will help.
Feel free to ask if you have any more queries that someone on the forum may be able to help you with.
Good luck in sorting everything out.
If you post how you get on i am sure it will help other customers in the future.
Can I just ask where you’re seeing the term Anniversary @Pipmeldrew ?
I agree that there’s too much loaded onto the standing charge. If my mp was someone else I think I’d write to him about it…
Can I just ask where you’re seeing the term Anniversary @Pipmeldrew ?
I agree that there’s too much loaded onto the standing charge. If my mp was someone else I think I’d write to him about it…
It’s now changed to this; My 12 month billing period should end in November 2023.
Your Direct Debit
You’re paying £133.00 on the 5th of each month.
Your balance is set to be -£434 by the end of your 12 month billing period. Your minimum monthly payment should be £170.
A word about standing charges: Jeffus has explained what these pay for. It is of course not simple to work out how to spread costs fairly, and OFGEM put a lot of effort into achieving a compromise between what Government mandates, what the energy suppliers and network operators want and what consumers expect.
It seems to me reasonable that each household should pay its share of common costs alongside the cost of the energy it consumes. If we scrapped the standing charge, those costs would have to be recouped through the unit cost of energy.
Imagine two houses on the same street. One is a bungalow housing a single OAP. Next door is a four-bedroomed property occupied by a couple and their four children. If the family consumes four times as much electricity as their neighbour, they would be paying four times as much towards the cost of building, maintaining and renewing the pylons, transformers, pumping stations, cables, pipes and meters that deliver their energy even though that cost is identical for the two properties.
Another example: an investment banker living in Chelsea maintains a holiday home in Cornwall and a shooting lodge in the Highlands. The infrastructure cost of delivering energy to these two properties is many times greater than to the OAP aforementioned, but because the banker only uses them for a few weeks each year, he would pay only a fraction of that cost through the unit price.
You fail to see why consumers should pick up the tab for failed companies. Someone has to compensate Octopus, say, for the costs involved in maintaining the supply to Bulb’s customers. Who, in your opinion, should bear this expense? Bulb’s shareholders, who have already lost their investment? The taxpayer (bearing in mind that this would largely fall upon ‘hard-working households’ and bypass many of those on benefits whose energy supply would have been interrupted by the failure)? Someone else?
Standing charges are to my mind an equitable way of dividing common costs between energy consumers.
“Standing charges are to my mind an equitable way of dividing common costs between energy consumers.”
We have been conditioned over the past 15 years to accept that it is the taxpayers burden to bail out failed businesses. It isn’t. I have no problem paying my fair share, as I do with Council Tax etc., but I do not accept that I should pay for failed businesses that did not safeguard against the energy situation.
So if you don’t want taxpayers to bear the cost… Who should? Someone has to pay!
“You fail to see why consumers should pick up the tab for failed companies. Someone has to compensate Octopus, say, for the costs involved in maintaining the supply to Bulb’s customers. Who, in your opinion, should bear this expense? Bulb’s shareholders, who have already lost their investment? The taxpayer (bearing in mind that this would largely fall upon ‘hard-working households’ and bypass many of those on benefits whose energy supply would have been interrupted by the failure)? Someone else?”
The costs involved ion maintaining the supply did not need to be added to the existing charge. The loading of this imagined debt for maintenance is a fallacy, but will now stand for as long as these companies wish. The cost of maintenance has not increased, nor has the level of investment by these companies. The failed companies customers could have been absorbed by those left standing without problem. Any residual debts of the failed companies should have been dealt with by the receiver and written off. Sad for the companies owed their monies but that’s capitalism, the system we live in.
And that would cause a chain reaction which would nuke everything, capitalism or not
… I do not accept that I should pay for failed businesses that did not safeguard against the energy situation.
Who should pay, do you think?
Or do you think that the affected consumers whose accounts were in credit should simply write off what they had paid in advance (an average of £353 per household)? While those who owed see their debt similarly written off?
It’s also worth noting that in most cases, the failed business itself has to cough up for its failure and the Administrators claim back the costs from the estate, albeit being paid themselves before anyone else of course.
An ESCA like with Bulb is just an edge case. It’s rarely done that way
… I do not accept that I should pay for failed businesses that did not safeguard against the energy situation.
Who should pay, do you think?
Or do you think that the affected consumers whose accounts were in credit should simply write off what they had paid in advance (an average of £353 per household)? While those who owed see their debt similarly written off?
I did not mean consumers, I was referring to creditors, which is what happens to any other business that folds.
Suppliers spend millions every year on advertising to attract new customers, there was no reason to treat the transfer of the failed suppliers customers any differently to a normal switch exercise. Millions of new customers at the drop of a hat.
… there was no reason to treat the transfer of the failed suppliers customers any differently to a normal switch exercise. Millions of new customers at the drop of a hat.
Except that during a ‘normal switch exercise’, customers’ credit balances are transferred to the target supplier. Customer credit was what was keeping the failed companies afloat until they’d spent it all and sank.
… there was no reason to treat the transfer of the failed suppliers customers any differently to a normal switch exercise. Millions of new customers at the drop of a hat.
Except that during a ‘normal switch exercise’, customers’ credit balances are transferred to the target supplier. Customer credit was what was keeping the failed companies afloat until they’d spent it all and sank.
If that is what you believe, then the Directors of those companies, which were obviously trading insolvent, which is illegal and an act of bankruptcy, should be facing criminal charges.
The government (taxpayers) would have been better served by serving up a measurable debt payment instead of allowing this to be loaded onto standing charges. Follow the money. Bonuses and dividends.
However this is on the Ofgem website which suggests the Supplier of Last Resort cost is minimal compared to the other charges
Correct me if I’m wrong!!
You are still ignoring the fact that the failed suppliers had no safety net for possible issues, were trading insolvent. If, for example, a solicitor was using clients funds for the running of his day to day business, he would be charged with embezzlement, hauled into court and have his licence to practice revoked. Explain to me the difference please.
The consumer balances were auditable, both debt and credit, and a simple transfer could have been effected with the taxpayer footing any shortfall as a one off payment in each supplier case. Instead, the remaining suppliers have been allowed to hike standing charges, which I would suggest will remain at these levels ad infinitum. The cost of maintaining the network is a day to day business expense by the supplier, with us the consumer picking up the tab. That cost has not increased at all due to this issue.
The graph from OFGEM is a snapshot and plainly ignores future years. This toothless excuse for a regulator, there to protect the consumer from potential monopoly abuse, which is what we have suffered over the past year, has, under the guise of continuing supplies after the failed suppliers mismanagement and insolvency, passed the buck to the taxpayer rather than the industry that is responsible due to their inability to protect future supplies.
I will now remove myself from this forum, which, in my humble opinion, is full of apologists for the suppliers in general and OVO in particular.
As a footnote, I had a very productive discussion with a member of the advanced resolution team yesterday, who has managed to progress ALL the issues I listed in my original post, to my satisfaction. He also agreed fyi, that DDR payments are calculated for a 12 month period from the start of ANY contract, and amended only when there is a possibility of a significant shortfall. There is no facility to extend this under the guise of a ‘rolling contract’.
… If, for example, a solicitor was using clients funds for the running of his day to day business, he would be charged with embezzlement, hauled into court and have his licence to practice revoked. Explain to me the difference please.
The big difference is the overriding requirement to act quickly to ensure that customers are not left without access to a vital resource. We have no idea what action may be being taken against those responsible for the failures. Yes, there are strict rules for the management of client funds, but at the time, no such rules were in force for the management of customer credit with energy companies. No-one foresaw the catastrophic rise in energy prices in 2021-22, so no-one foresaw the need for such rules. OFGEM has now shut that particular stable door: Ofgem announces tough new financial measures to ensure energy suppliers can withstand future shocks - including protection for customers’ credit balances | Ofgem
I note that you suggest that the taxpayer should cover any shortfall. That is what is happening, except that there is now a mechanism in place to recoup the treasury’s expenditure from all energy consumers rather than imposing another burden on general taxation.
PS “… have his licence to practice revoked” - rescinding the failed companies’ licence to supply energy was the first step in the process.
FYI. The Ombudsman found in my favour, awarded another small compensation and my DDR was left at the level I requested. At the completion of 12 months payments my account resulted in a healthy credit balance as per my calculations. Had I just allowed OVO to manipulate my DDR payments, my balance would have soared to 3 times the amount.
Thank you for your update @Pipmeldrew, I’m glad you were able to get a resolution you were pleased with.
Reply
Need advice from other members?
Ask your question to our members - they have the experience you're looking for:
