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Firedog
Super User
Super User
February 26, 2024
Solved

Why is my Future Annual Consumption estimate so persistently high?

  • February 26, 2024
  • 86 replies
  • 1895 views

I have just read this passage about FACs in another thread: “… my own experience shows that [the future annual consumption figure] is being based on, (or at least being adjusted based on) actual meter readings. I could see my FAC for gas changing (reducing by large amounts) within minutes of submitting a new meter reading.”

This is what is supposed to happen, if I understand the wording here: Usage projection is a figure produced by our billing system, that uses smart meter readings (if available) to project the usage for you over the next year.

We clearly have a two-tier system: an ineffectual one for smart meter customers, and another better one for everyone else. Those who submit manual readings 'see their FAC changing within minutes.' Those of us with smart meters are apparently subject to a system which can take months to adjust the FAC to actual usage, despite having meter readings recorded automatically every day.

My own (electricity only) FAC got stuck last year after a meter adjustment. I was told last year, as was the Ombudsman, that it would all come right after a meter exchange, which happened in September. There was no change to my FAC until mid-November, when it suddenly started falling from its figure of 2.35 times the actual annual usage. This is how it has progressed, from its stubbornly-maintained figure of 2902.9 where it had been since the previous April:

 

 

I can't explain the hiatus in early January, unless there was some manual intervention. The figures are updated every Sunday, and occasionally midweek: there have been 16 updates since 5 November. If manual intervention is possible, then there’s no need to rely solely on this clearly flawed system.

I suppose I should be grateful that my FAC is now only 76% higher than my actual consumption for the past year. Excel tells me that if both curves proceed at the same rate, they will eventually meet on 8 August next, just one year after OVO assured the Ombudsman and me that a meter exchange would soon solve the problem.

For those of us with multi-rate tariffs (e.g. Economy 7), there have to be FAC figures for peak and offpeak usage. It’s the ratio between these that determines how economical the tariff is, so it’s also important that this ratio is also accurate. It’s not, for me. Not only is any Direct Debit calculation worthless, but so are projected costs when trying to compare tariffs. 

There is something seriously wrong with the FAC determination if it can't adapt more quickly to actual, readily-available meter-confirmed data as Ofgem mandates and as Tim maintains it should.

Best answer by Firedog

Updated on 15/08/25 by Emmanuelle_OVO:

 I’ve now (courtesy of @ChristopherS_OVO - thanks!) had some actual figures for the calculation of my FAC, and they’re as clear as an early-morning midstream sample. I learnt a few things, though:

  • The EAC is indeed allegedly updated to reflect data shared by the supplier. If that sharing fails for some reason - and it clearly did in my case - the EAC reverts to a default value, subsequently adjusted for whatever data have been successfully shared since the fault. 
  • I can’t for the life of me work out where these default values come from. I’m told they are for a ‘typical E7 user’. So no attempt at all to take into account the factors that Uswitch and comparethemarket say are used to match the EAC to the user’s household [“central industry sources including the Retail Energy Code Company … estimate your consumption over the next 12 months based on a number of factors about your property and based on your property’s historical consumption.Your usage comparison is based on your energy usage compared to other households in your postcode region. Your usage will be affected by a number of factors including the size of your home and the number of people who live there.”]
  • Meter readings are thus used to adjust the EAC from its initial default value, but this can only happen of course if OVO successfully submit readings. This seems to be where the fault is in my case.
  • OVO then generates an FAC from the current reading and the current EAC, the proportions of each depending on the time elapsed since Week 0. By Week 52, the EAC proportion will be 0 and the meter advance 100%. 
  • It’s impossible for me to work out how the EAC is adjusted when a reading is submitted, but I suspect it’s a similar arrangement.* This being the case, the FAC should approach parity with the meter advance before the year is up. How long before is a mystery, but it’s not likely to be nine months before.
  • I can see no reason why OVO can’t generate a more accurate FAC if it’s clear that the EAC is wrong. OK, this would involve manual intervention, which they understandably try to avoid. However, I’m sure it would have taken much less effort on their part just to do this rather than involve at least five different employees in trying (and failing) to explain why it went wrong for me in the first place.
     

[I just realized after reading this through, though, that this was the sort of approach Fujitsu took when faults appeared in bits of their Post Office Horizon system. I won’t draw any more parallels ...] 
    



*   If it were a similar arrangement (the EAC value changing pro rata with the meter advance over a fixed period), then we’d end up with a second-order function which would give a parabolic curve if the actual consumption was lower than expected. Something like this (I know how you all love my pretty charts 🙂):
  

 

86 replies

Firedog
Super User
FiredogSuper UserAuthor
Super User
April 30, 2024

A quick update: my FAC took another lurch on Sunday, this time downwards again. The total is again in line with earlier figures, waning slowly from 2700 in November towards the actual usage of around 1050 in mid-August. Here are the last four FACs: 
  

FAC Peak Offpeak Total
07/04 1161.8 604.2 1766.0
14/04 1147.0 582.5 1729.5
21/04 1562.9 434.0 1996.6
28/04 1306.4 313.7 1620.1

 

I wish I knew what they were up to (1766 > 1730 > 1997 > 1620?); it’s clear that the formula I was given isn’t being applied. At least my annual projected energy cost is currently only overestimated by 27%, because half of mine is the standing charge which the FAC luckily can’t mess with. 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Chris_OVO
Community Manager
Community Manager
May 1, 2024

Hey @Firedog & @Nukecad

 

I know this has been an ongoing issue for some time now so I have raised this internally so we can try and better understand what is causing this for you. Would you both mind dropping me a message with your account numbers so that I have them to hand? 

 

I will work on trying to get more information for you 🙂  

Renewable energy jokes never get old.
Firedog
Super User
FiredogSuper UserAuthor
Super User
May 1, 2024

Thanks, Chris. I’ve PM’ed you.

I’m well aware that multi-rate accounts are a pain in this respect; I read somewhere that their FACs are only updated weekly (as opposed to daily?), and that ties in with my experience (a new FAC every Sunday) apart from a few outliers. The problem is that the normal adjustment {[time from start x meter advance from start] + [EAC x (one year - time from start)]} has to be done for each register if it’s to make any sense at all. I think the latest adjustments have been done on my account to try and compensate for this, by keeping the overall FAC in line with the target while setting the offpeak figure at a more reasonable level at the expense of the peak one. 

I’m sure it’s possible to devise a more equitable system! 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Nukecad
Super User
Super User
May 1, 2024

@Firedog I also mentioned your particular yo-yo’ing FAC to the Forum Support who are (supposedly) looking into the issue of inflated/balloning FACs for me by PMs.

@ChristopherS_OVO as I say there I’m already talking by PM to Forum Support about these FAC issues, they already have my account details.
PS. My own FAC is now reasonable, but it has been vastly inflated in the past, and it has also made sudden jumps (doubling at the end of February) in the past - I am not multi-rate, I’m currently on the Fixed Loyalty tariff since December.

I said, Hey - Watts going on.
Firedog
Super User
FiredogSuper UserAuthorSolved
Super User
May 5, 2024

Updated on 15/08/25 by Emmanuelle_OVO:

 I’ve now (courtesy of @ChristopherS_OVO - thanks!) had some actual figures for the calculation of my FAC, and they’re as clear as an early-morning midstream sample. I learnt a few things, though:

  • The EAC is indeed allegedly updated to reflect data shared by the supplier. If that sharing fails for some reason - and it clearly did in my case - the EAC reverts to a default value, subsequently adjusted for whatever data have been successfully shared since the fault. 
  • I can’t for the life of me work out where these default values come from. I’m told they are for a ‘typical E7 user’. So no attempt at all to take into account the factors that Uswitch and comparethemarket say are used to match the EAC to the user’s household [“central industry sources including the Retail Energy Code Company … estimate your consumption over the next 12 months based on a number of factors about your property and based on your property’s historical consumption.Your usage comparison is based on your energy usage compared to other households in your postcode region. Your usage will be affected by a number of factors including the size of your home and the number of people who live there.”]
  • Meter readings are thus used to adjust the EAC from its initial default value, but this can only happen of course if OVO successfully submit readings. This seems to be where the fault is in my case.
  • OVO then generates an FAC from the current reading and the current EAC, the proportions of each depending on the time elapsed since Week 0. By Week 52, the EAC proportion will be 0 and the meter advance 100%. 
  • It’s impossible for me to work out how the EAC is adjusted when a reading is submitted, but I suspect it’s a similar arrangement.* This being the case, the FAC should approach parity with the meter advance before the year is up. How long before is a mystery, but it’s not likely to be nine months before.
  • I can see no reason why OVO can’t generate a more accurate FAC if it’s clear that the EAC is wrong. OK, this would involve manual intervention, which they understandably try to avoid. However, I’m sure it would have taken much less effort on their part just to do this rather than involve at least five different employees in trying (and failing) to explain why it went wrong for me in the first place.
     

[I just realized after reading this through, though, that this was the sort of approach Fujitsu took when faults appeared in bits of their Post Office Horizon system. I won’t draw any more parallels ...] 
    



*   If it were a similar arrangement (the EAC value changing pro rata with the meter advance over a fixed period), then we’d end up with a second-order function which would give a parabolic curve if the actual consumption was lower than expected. Something like this (I know how you all love my pretty charts 🙂):
  

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Chris_OVO
Community Manager
Community Manager
May 6, 2024

Hey @Firedog,

 

I’m glad you have had the opportunity to review the data and that it has helped you understand the calculations a little better. 

 

The only thing I would add is the part that you mentioned about manual intervention. I’ve asked about this and the team have petitioned this with Kaluza but it currently isn’t something they can intervene with. They are aware of the need to try and address this when we know there is an imbalance in the calculations. There are some occasions where the imbalance is necessary such as a meter exchange as the system would in a way treat this as a “fresh start” but you would typically see things like your DD fall naturally over time with the new readings scheduled. 

 

Thank you for sharing your thoughts and findings with the new data 🙂

 

 

Renewable energy jokes never get old.
Nukecad
Super User
Super User
May 6, 2024

As I see it the problem with making manual interventions is that the automatic system would probably just put them back to being wrong again the next time it ran.
So it would end up in an ongoing person vs machine battle to keep things right.

My own conversations with  Forum Support so far tend to agree that there is something out of kilter with the EAC and AQ calculations ‘further down the line’ at Kazula or Xoserve (for gas).
Personally I suspect that such calcuation glitches for certain circumstances may be pretty long standing but didn’t previously show up the same in traditional billing as it now does with OVO’s live billing.

PS. I haven’t reported here on the forum much of my converstaion with FS, partly because there is nothing conclusive (as yet), and partly because I wanted to concentrate on the DD calculator here on the forum without confusing the two issues any further than they already are/were.
I say were because the DD calculator at the moment seems to have been tweaked and to be working OK for Fixed Tariffs, so hopefully that’s also the same for Variable Tariffs, and hopefully meaning that any oddities left in there now are probably due to FACs.

I said, Hey - Watts going on.
Firedog
Super User
FiredogSuper UserAuthor
Super User
May 6, 2024

 

As I see it the problem with making manual interventions is that the automatic system would probably just put them back to being wrong again the next time it ran.

 

You’re quite right, of course. However, it’s a strange ‘automated’ system that can take leaps like my 1766 > 1730 > 1997 > 1620. I suppose someone might have found some numbers down the back of the sofa.

   

… the DD calculator at the moment seems to have been tweaked and to be working OK for Fixed Tariffs, so hopefully that’s also the same for Variable Tariffs, ...

 

FWIW the calculator has always worked as designed for me on the SVT. They’re not complicated calculations, so there’s no reason why it shouldn’t work smoothly. But the fundamental significance of the FAC can make a mockery of the system when it’s out of kilter for whatever reason. I wonder if the support staff see exactly the same results in their dashboard as we see on the web - perhaps @ChristopherS_OVO could ask?

Your recent experience of seeing two different outcomes at the same time would suggest a caching delay, as if one bit had caught up before the other. I’ve seen similar oddities in other parts of this (bafflingly complex) site, that have magically come right after a few hours or days. Moral: when something looks really strange, come back a bit later and look again.

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Nukecad
Super User
Super User
May 7, 2024

I have now had a further PM reply from Forum Support in which they say that it's the industry AQ that still has a too high figure for my actual usage, and it's that which is causing the spikes in my FAC for gas.

They further state that because of that too high industry AQ it could spike again in future, which I interpret as meaning whenever that incorrect AQ gets fed into the calculations again it will cause another spike in the FAC.
(They suggest that sending more frequent readings may help, however we already know that it does help lower the FAC but only until the next spike).

However they have finally identified why my own industry AQ has been consistently too high.
Apparently Xoserve have the wrong MSN listed for me.
So any readings sent for my actual meter are not getting to the MSN listed at Xoserve, and so not being used when (re)calculating my AQ.

Presumably the MSN that Xoserve have listed is for the new gas meter that was supposed to be fitted in my failed meter exchange last May, but never was fitted.

Support say that they have now raised a ticket to get my MSN corrected at Xoserve.

@Firedog  As your issue also appears to involve a (electricity) meter exchange then if you haven’t already you may want to check whether Elexon have your MSN correct for your electricity meter.

I said, Hey - Watts going on.
Nukecad
Super User
Super User
May 7, 2024

Additional to the above.

I’ve been thinking more about that incorrect gas meter MSN and what should happen in that situation.

if the issue in my particular case is solely that Xoserve have the wrong MSN and so are just using the 'industry standard' usage figure for the AQ then that still doesn't explain why my FAC for gas climbed to over 31,000 kWh last December.
That's way higher than the Ofgem average 7,500 kWh gas for a 1 bedroom flat.

For that reason alone I still suspect that there is something more in play here than just that incorrect MSN.

(Of course Forum Support are happy that they have found ‘something’ concrete to hang an explanation on - whether it’s the full explanation or not).

So I'll still be watching to see what happens once the MSN has been corrected.

 

I said, Hey - Watts going on.