The end of the interest payment to help the customers pay the right amount through direct debit

Hey @margiejay, the removal of the interest reward doesn’t affect how much credit you’re allowed to leave in your account. Some customers who were keeping large amounts of credit in their account solely for the interest may now choose to get some credit refunded.

You don’t have to get a smart meter, although if your meter reaches the end of it’s life (meter recertification) it will be replaced with a smart meter.

Hope this helps. 

Hi Emmanuelle

thanks for your reply. I started receiving this interest at the same time as my Bank stopped paying interest on my current account, both at a similar percentage rate, so it softened the blow. It then just became a habit to top up OVO with spare funds. I can’t imagine why anyone would deliberately deposit funds into OVO to earn a few quid on a large amount of money. But there’s nowt so queer as folks! as us Northerner's say (No offence intended).  
 

Some time ago I read that if I did have to have a smart meter, recertification or house move, I could ask for it to be made into sleep-mode (I’ve forgotten the proper terminology).  At 79 (me not the meter) I hope that scenario would still be available. 
 

many thanks again

Hey @margiejay,

It is indeed possible to put a smart meter in non communication mode or ‘dumb mode’ which essentially means it won’t send meter readings across to your supplier, you’d still have to do that manually.

If you have any energy related questions do pop back and we’ll be happy to help 😊

Removal of the Interest Reward

 

In the past, some of our plans have been eligible for the OVO Interest Reward. Customers on these plans, who kept their energy account balance in credit, were paid interest. This interest was paid on the positive account balances that were higher than their Direct Debit amount.  

 

Due to the rule changes on where Direct Debit payments must be as accurate as possible and that we must not let credit build up excessively. The aim is for our customers’ payments to accurately cover their energy usage over 12 months – leaving them with a balance of 0. 

 

What does this mean for our customers?

 

These changes mean that it’s no longer possible for us to offer the OVO Interest Reward in a way that gives our customers the best value. Because of this, the scheme will be closing. 

 

If your account is in credit by more than 1 month's Direct Debit amount, you can now request a refund or review your Direct Debit via the online account.

 

• Changing your Direct Debit date on the OVO app Tutorial

• Getting to grips with the Direct Debit Calculator on your online account Tutorial

So for those of us who have stored money in our account willingly we are now going to be punished by having the 5% interest earned taken away effectively putting our bills up by 5%. This was  aloyalty scheme only available to those customers who had had an account prior to a certain date. Read on to see what lhappens when you’re loyal. This was the only incentive to stay with OVO whilst every supplier was effectivley having to offer the base price due to the price cap. The amount I requested to be refunded I was told was the maximum. If I’d asked for another £1 more I wouldn’t have been allowed it. Yet I’m £2200+ in credit, I’ve requested £1500 back which is on it’s way but I think it’s unfair to now cap how much we can have back if you’re no longer wanting to pay interest out. OVO shouldn’t be allowed to have it both ways. Screw the customer then screw the customer again! If OVO really do think that this is good customer service they are offering then I’d be intersted to hear how they arrived at such a decision.

Hey @SJM 

I know there are many who have seen the benefit of the Interest Rewards for some time now.

I just want to step in to clear up some information on the thread.

You are correct here in that you’d get interest on the first £1000 of credit you have on your account, if there’s more credit than £1000, then no more interest would be gained past the first £1000. 

I hope that clears that up a little, I’ve also linked to the really helpful webpage on the removal of the Interest Reward that may help in explaining why it’s now being removed.

I think it is worth pointing out that although any credit isn't FSCS protected, it is protected via the legislation and process around failing energy suppliers.

So you won't loose your money should a supplier go bust.

So I wouldn’t personally worry about the risk of loosing  credit in the event of a failed energy supplier.

From Ofgem:

What is the ‘Supplier of Last Resort’ (SoLR) process?

This is when Ofgem directs any gas or electricity firm to take on a failed supplier’s customers. When we choose a supplier, we must be satisfied that they can supply additional customers without significantly prejudicing their ability to continue to supply their existing customers.

We choose the new supplier following a competitive process designed to get the best deal for you. Household credit balances are protected.

Also I never “stuffed overly excessive amounts into my account” the £1000 was there for the 5% return to help towards lowering the bills and the rest was there in case we had a harsh winter.

@Jeffus thanks, I did check first before putting the £1000in that I would get it back if OVO went bust. In fairness to OVO they took time out to check for me before coming back and confirming.

@Abby_OVO thanks but that link wasn’t helpful at all. Given that I’m still in control of my own DDs what is to stop me putting plenty of money aside still by being in plenty of credit? Would something kick in and automatically return money to me, as that link failed to say?

The link said this rather than an automated process

"Managing your account balance

If your account is in credit by more than one Direct Debit monthly amount, you can now request a refund or review your Direct Debit via your online account."

So I did this and the money is in my bank account now.

• FAQs on applying for a Refund from your OVO account Tutorial

It must be nice to have access to your account so you can easily do things like this.

Some of us can’t.

@Hadders52 why doesn’t OVO let you have access to your account? Have you asked them?

There are quite few of us who have not had access to our on-line accounts for nearly a year now.

If we need to interact with Ovo we have to join the queue waiting for a chat, then go through the whole palaver of verifying ourselves etc. etc. so every interaction takes around 30 minutes.

This is the only way we can find out what our balance is or change Direct Debits, or ask for refunds etc.

The worst part is that Ovo have not sent us even one email to keep us informed about what is happening.

I see from this forum that others have had an email saying that the 5% reward is being stopped, but I haven’t even had this.

@Jeffus that’s not what I meant. This system has been introduced to stop people having too much in credit. How does it stop it? If I put £1000 into my account does it send it back to me saying I’ve got too much credit? No, it doesnt. So this system hasn’t stopped people having too much credit its at best just disincentivised them from doing so but certainly doesn’t stop people which was supposed to be the aim. Why can’t adults be allowed to look after their own money and get 5% back??? A year ago I had to argue for ages to not put my DD up on the phone as I had about £1500 in credit but OVO wanted me to increase my DD despite this. As an adult I felt I should control my own finances and not OVO, I finally won but it was hard work. The point there is don’t trust OVO to look after your finances when you know you know better but here with the removal of the interest we are forced to. I am out of contract now thankfully so I can get away from this situation. Februarys task is to move supplieras there’s no incentive now to keep me with OVO.

That’s awful. That’s not fair. OVO should not treat people like this it should be one way for everyone or not at all. I hope they have dipped into their profits and compensated you heavily for this. OVO man up and treat everyone equally - there are laws about this these days its 2024 not 1824. 

Sigh… I really didn’t want to have to write this…

The legacy billing system Apollo had some nasty flaws in it that were basically tearing apart the online services. It was no longer viable to continue keeping them active because doing so would have led to more damage. OVO didn’t want to have to do it, but they had no choice.

That is why only about 1,000 or so customers can’t use online services right now.

Everything beyond that is, I’m afraid, confidential. But it is for the best, trust me.

Removal of the Interest Reward

In the past, some of our plans have been eligible for the OVO Interest Reward. Customers on these plans, who kept their energy account balance in credit, were paid interest. This interest was paid on the positive account balances that were higher than their Direct Debit amount.  

Due to the rule changes on where Direct Debit payments must be as accurate as possible and that we must not let credit build up excessively. The aim is for our customers’ payments to accurately cover their energy usage over 12 months – leaving them with a balance of 0. 

What does this mean for our customers?

These changes mean that it’s no longer possible for us to offer the OVO Interest Reward in a way that gives our customers the best value. Because of this, the scheme will be closing. 

If your account is in credit by more than 1 month's Direct Debit amount, you can now request a refund or review your Direct Debit via the online account.

• Getting to grips with the Direct Debit Calculator on your online account Tutorial

• Changing your Direct Debit date on the OVO app Tutorial

It is a fair point.

The revised system will automatically adjust your direct debit to get your balance down to zero at the end of every winter following ofgem changes.

This change wasn't initially applied to anyone who was on the Interest Reward program.

I do agree that it is always good to shop around for the best rates and the removal of the interest rewards is an incentive to start looking.

The wholesale price of gas has fallen dramatically which also impacts electricity so we should hopefully see some good deals leading up to the next price cap review from all suppliers. Obviously nothing is guaranteed. 

Have you identified any good deals yet?

.

I agree

I think at the very least an ex gratia payment would be appropriate for these users. I think that is fair and also I suspect the Energy Ombudsman would award compensation if someone took it that far.

I have worked on many global migration in my career and honestly have never seen or heard of anything like this.

I am sure there are reasons for the delay but that doesn't negate the impact of customers in any way.

Emmanuelle_Ovo, thanks for this information.

If I actually had access to my online account then I would be able to do all of the things you talk about.

BUT I CAN’T

You instruct us to trust you but it was your post earlier that was removed because of the pack of incorrect information you were spreading around. I’ll not be following your command on this.

Emanualle_OVO: “Due to the rule changes on where Direct Debit payments must be as accurate as possible and that we must not let credit build up excessively. The aim is for our customers’ payments to accurately cover their energy usage over 12 months – leaving them with a balance of 0. “

Who decided to change the rules so that customers are not allowed to look after thir own finances? I dont know what’s going to happen tomoorow or in six months time but to know I have more than enough in my energy account to cover me gives me peace of mind. To KNOW that whatever happens I am going to be at ZERO after 12 months is awful, I’ll have ZERO in my account to cover me meaning if I’m out of work by then I’ll not only have to have me heating off but there’s not enough money to cover the standing charges. Why has this rule been deliberately created to potentially put customers at this risk?

In case it helps @SJM 

Ofgem decided to change the rules. This is what kicked it off.

https://www.ofgem.gov.uk/sites/default/files/2022-08/Decision%20letter%20DD%20rules.pdf

They have an email address you can contact them about their policies.

consumeraffairs@ofgem.gov.uk

The change followed a public consultation.

There are regular consultation conducted by ofgem. Many are not that relevant to end consumers but some are worth contributing to if that interests you 

https://www.ofgem.gov.uk/energy-policy-and-regulation/engagement/consultations

There are also regular calls for input. A recent one on standing charges was particularly popular and was signposted from this forum.

https://www.ofgem.gov.uk/energy-policy-and-regulation/engagement/calls-input

I would encourage you to take part in the consultations and calls for input if it is a subject you are passionate about.

@Jeffus it shouldn’t have to interest me and it doesn’t. It should however interest OVO Energy as they are the ones who will stay in business only if they have enough customers. If we all leave, or enough of us do, then they’ll go bust. It’s down to a business to operate and conduct its business in a manner that keeps it viable. Customers shouldn’t be encouraged to approach Ofgem on an individual basis its up to the energy suppliers to appoach them once of behalf of however many million customers it has. I can find another energy supplier - they cant go and choose another customer.