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

A fixed Direct Debit amount must be fair and reasonable.

The idea is simple.  Energy bills tend to be lower in the summer and much higher in winter. To help customers, suppliers can calculate what you bills will be, typically over a 12 month period, but this relies on an accurate forecast of consumption and the prices of the fuels that you use. Your direct debit amount doesn’t cap your liability irrespective of usage – if you use more fuel you will have to pay more, if you use less then you will build up a credit.

In practice the forecast of consumption is either too high or too low, and prices can change.  Recently, the price cap has changed 6 monthly, now it’s going to change 3 monthly.  And then there is the question of whether the customer’s account is currently in credit or debit, because that has to be factored in as well.

With prices of energy rising rapidly in the past 18 months, its unsurprising that changes to direct debit amount will be a substantial increase.  The average customer faces an increase of 80% from October in their prices, but that’s the average, some might face a lower figure, others, particularly heavy gas users, could face even higher increases.

So while the initial reaction is one of shock and horror at what is being requested for a new Direct Debit, that isn’t a sound or logical way to dispute the proposal.  What is needed is an accurate forecast of consumption for 12 months times the prices of the fuels that you use, plus /minus your current account balance, then divide that total by 12.  If prices are going up soon (like now) then using the October 22 prices would be entirely logical, even though that will in reality understate the required Direct Debit, as prices will likely rise again in January 23, although the amount isn’t yet known.

Your energy supplier doesn’t know that much about you, and changes in your household size, occupants, working practices and use of devices will affect your forecast of consumption that you can and should factor in but your supplier can’t.   Prices and account balances should be matters of fact.  Challenge your supplier on this logical basis if their assessment is markedly different from yours.  But what your Direct Debit was in the past compared to the current request is not really a relevant factor.  Social media is often touted as the best method of contacting your supplier – phone lines are always very busy.

What if you prefer not to pay by Direct Debit?  Prices for energy if you pay by Standard Credit rather than Direct Debit work out at £215 per annum more for the average user @ October 2022 prices.  And paying by standard credit could mean paying a very high energy bill in the depth of winter when the bills from Christmas also land in your inbox or on your doormat.  Most people will not find that an attractive proposition.

I’m trying to speak to someone also as I’ve just received an email to say my DD will go up.

do I assume this will include the October increase and there won’t be another one next month? Like everyone else I’m in credit and managing my account just fine

It really doesn’t make sense does it, you are in credit but they still increase the direct debt???

We are forced to take what the Energy company thinks our direct debt should be and that what we pay  will not cover the increase. Don’t they think we can think for ourselves if we are in credit surely using that credit first would be better and then increase if needed. I’m in credit but my bill has increased by £73, I use less than £2 for both fuels a day, I monitor my usage daily. I, I appreciate standing charges VAT etc needs to be added but it still doesn’t reach the amount I pay by direct debit. I’m not on a fixed rate as it would’ve tripled my monthly payment. 
 

Hi @Vickitee ,

As I understand things, the increase probably does factor in the next price cap, but you’ll be notified 10 days in advance if things change.

By the way, there appears to be some comments in this thread that are currently awaiting pre-moderation. If you got a message from the forum software stating your post will be published after review by a moderator, please be patient as they’re working flat out to get through everything.

@Blastoise186 great thanks. I’m still waiting on the phone for them to confirm. I’ll update when I know more

No worries.

The phone lines are incredibly busy at the moment, in actual fact ALL of the contact channels are being hammered due to tons of things happening all at once.

While the OVO Forum is patrolled by a group of forum volunteers (and two amazing moderators!) rather than OVO employees, we can’t give account specific solutions here. But hopefully we’re able to help take on some of that load for general questions. And believe me, we’ve been absolutely smashing it in that regard!

If you have any ideas to help improve the online services, feel free to post an Idea too. :)

The current things in scope are this forum (naturally!), MyOVO, the OVO Energy mobile apps and the OVO Help system.

Can @meldrewreborn ‘s answer be posted somewhere where it can easily be found by everyone who is trying to deal with their Direct Debit increases. It clearly explains the reasons for the increases and importantly the implications of not sticking with a DD. So many forum threads are about the same thing at the the moment - not everyone will be looking at the forum, can it go in a FAQ answer ?

Definitely an option!

If it’s posted as a new thread, then it can potentially be tagged as a forum article by moderators. :)

You’ll need to do it in one shot though. The 60 minute edit limit timer can be brutal if you’re trying to make lots of edits and don’t have unlimited edit time.

If the guide is really good, it might even get posted to OVO’s official blog. I’ve known that happen a few times.

I have this morning received an E-mail from OVO telling me I must increase my direct debit to cover increasing costs, but they haven't told me what these are!!!!

They further tell me if I don't increase it they will just take more anyway, is this legal, or even morally just???

Further to watching BBC's Panorama last night, I find they lied to me recently saying that my electricity costs were due to OVO buying my "100% renewable electricity " on the open market, when according to Panorama the electricity price is just coupled to the gas price, nothing to do with production costs or availability. 

Cheers, Ali, (rant over)

I have this morning received an E-mail from OVO telling me I must increase my direct debit to cover increasing costs, but they haven't told me what these are!!!!

They further tell me if I don't increase it they will just take more anyway, is this legal, or even morally just???

Further to watching BBC's Panorama last night, I find they lied to me recently saying that my electricity costs were due to OVO buying my "100% renewable electricity " on the open market, when according to Panorama the electricity price is just coupled to the gas price, nothing to do with production costs or availability. 

Cheers, Ali, (rant over)