OVO have sent an email about my Direct Debit - Why are you increasing my monthly payment when I’m already in credit?

My account has gone from a showing a 60% reduction in the minimum payment, to

“We can’t show you a payment recommendation right now”  

(actually £00.00 dd would put me at zero balance come the end of contract mid March 2022)

But I would like to query @Jess_OVO comment of

                                                                                     ……….
 

we’re suggesting an additional increase to your monthly payments as we anticipate the energy prices will be a lot higher when you come to renew (the prices of fixed-rate plans have more than doubled in the past year). By building up a credit balance now, you’ll be able to use this extra credit when you renew and avoid a big jump in your monthly Direct Debit amount at this point.

                                                                                   ………..

Suggesting,  an additional increase by notifying the customer is fine with me,

but pro actively increasing dd payments for anything out of contract just doesn’t sit right.

Tom…

Not to mention, anticipating (assuming?) that the customer will be renewing their contract with Ovo, when the time comes.

Same as most here. currently £460 in credit and want me to double my DD ! no way. I still have 17 months to run on my 2 year fixed deal. I maybe getting old but I know how to manage my accounts.

To ask the blunt question:

Would Ovo claim that the customer would be breaking the terms and conditions of the contract if they refused to increase the direct debit amount by/to whatever monthly amount that, in Ovo's opinion, is required in order to arrive at the end of the contract term without a large balance either way.

Declined to take up the invitation to increase the DD amount is the more neutral way I would put it.

And if that's Ovo's assertion, I think it needs to be tested because, in my non-legal opinion, such a contract would be unfair.

Me too….I got an email yesterday and was a bit gob-smacked. Got a new boiler to replace a 40yr old one, reduced my DDs just a smidgen as recommended, on a fixed 1 year deal...until next Sept. And now I have to pay more, even though I am nearly £200 in credit….I would not mind if they had suggested I change, but to do it automatically…..thought about ringing customer services...do we just have to wait until it happens then reduce the payments? then get another hike of the DD and change it back? I would not mind but it takes a while for the changes to the DDs to kick in, so its a real pain to have the monthly payments jumping up and down. Hey OVO, make this DD change voluntary please!

Of course, I posed my question wrongly. Sorry.

It is in the T&Cs that the DD should be set in this way. What was not in the T&Cs, the last time I looked, was setting the DD at a level that has the aim of building up some credit to carry forward to the follow on contact.

The reason I think that might be judged to be an unfair term is that it appears to take for granted that there will be a follow on contract with Ovo.

I would like a response from Ovo on this, please, @Tim_OVO

You’re quite right there, @Simon1D - Our minimum Direct Debit amounts are set to ensure you finish your plan without a lump sum to pay. As mentioned above, these latest Direct Debit increases aim to build up slightly more credit to avoid a sudden increase in your payments when you come to renew. If you’re not yet sure whether you plan to renew with us you can of course reduce your payments yourself by heading over to the ‘Payments’ page of your online account, as long as you’re still paying the minimum amount.

I hope this helps explain your Direct Debit options and the reasoning behind these latest increases.

What’s at issue is Ovo’s idea of a reasonable minimum amount.

So today, for example, now that Ovo thinks it’s supplying me with gas on its variable tariff, it has set that minimum at £90, despite my being £130.38 in credit. Or rather, that’s what it said earlier this morning. I just looked again, to check, and now it says “Sorry, we’re not able to show you a payment recommendation right now. We’re working super hard to fix this.”

For what it’s worth, that £90 figure would not be unreasonable, as a way to spread costs over a whole year: the same gas energy as I consumed over the last 12 months, if I were paying for it at today’s variable tariff, would cost me about £94 * 12 (after using up that credit balance, and allowing for the standing charge). So I’ve no complaint about that at all.

But that’s not how you describe things:

“these latest Direct Debit increases aim to build up slightly more credit to avoid a sudden increase in your payments when you come to renew”

To be clear, I haven’t been on the receiving end of one of these increases and it was in response to reports from others who have, that I observed that a side effect of those same Direct Debit increases would be an immediate improvement in Ovo Energy’s cashflow.

These are two very different possible explanations for why Ovo is increasing its minimum DD amounts for customers who still have some time before their fixed rate plan ends. Who knows which might count for more in Ovo’s eyes? Not me.

Similar situation.
Fixed for 2 years in September 2021. Received email stating that they were going to increase direct debit from £200 to £220pm. Calculator predicts that account will be in credit by £400+ at the end of the contract at £200pm and £800+ With increased direct debit of £220pm. Interesting that the online calculator is unable to suggest a monthly DD amount at this time 🤔

Can only assume OVO is trying to improve their cash balance at the expense of their customers. Wonder if they are worried about their future in the medium term?

Just had the email telling me that my dd is set to increase, 

The email states We're increasing your Direct Debit, to help cover future price increases

My faith in ovo has fallen tenfold due to the way ovo have suggested / advised / enforced this increase in 1 swift exercise.

My fixed term ends in March so the 10% increase that ovo have applied to my dd payments (without my consent) will do little against the eye watering expected £500 a month mark if I take out a fixed 2yr deal with ovo come March? the 1yr fix is even more expensive.

(based on an online quote today as a new customer)

As I have previously mentioned, I have no issues with ovo informing the customer of the energy market crisis? & their proposed benefits of increasing dd payments now! 

To be honest the response of 

If you’re not yet sure whether you plan to renew with us you can of course reduce your payments yourself by heading over to the ‘Payments’ page of your online account, as long as you’re still paying the minimum amount.

So as I see it,

Ovo are quite happy in deciding what is best for the customer & duly increase the dd payments (with the added pretence of benefiting there customer base & enforce it without question ( the thought that it raises revenue for ovo never crossed my mind)

but are then happy enough to let the customer decide if they then wish to lower there dd payments to there previous ££ or even at a reduced ££ 

Why the double standard?

(One option dose raise dwindling capital for ovo) my bad, did I say that last bit out loud, oops

My 2nd account (also in credit) has been showing the last couple of weeks  “We can’t show you a payment recommendation right now”

I wait in anticipation for another email

Tom…