We renewed our OVO energy contract just 2 months ago to the 2 yr fixed price plan. Having been customers of OVO for several years they had lots of info on our energy consumption. The offer of a two year fix at £118 per month seemed too good to be true since we had been paying £140 per month. I queried the amount several times when we signed up but was assured that £118 would cover our costs. Today, just two months into our contract we have been advised to increase our monthly payment to £128. Whilst we have probably used more gas in the last 2 months than last year due to the cold winter, it seems incredibly quick to make us start to pay more. A good summer could soon reduce our gas bills! I fear it's as we thought - a low offer to tempt us to renew our contract and then bump up our monthly payment.
Has this happened to anyone else? And how did you deal with it? Sit it out hoping your consumption would even out over the year, or increase your payments?
Best answer by Transparent
I believe there's no connection between the original offer at £118 and the request to raise the monthly payments. These are assessed by quite different formulae.
I think you're absolutely right to highlight the cold weather spell as the likely culprit. Since this occurred almost as soon as your new contract started, it would be bound to have a large influence on the forward usage prediction.
Two months is actually a very good time for OVO to reassess the payments. The usual complaint I see here is when the request to increase the Direct Debit occurs after the contract is already six months old (or more). In those cases the increase is proportionally higher because it also has to cover 6 months+ of backlog.
I suggest you increase the payments as requested. From reading what others have posted on the Forum, the Usage Prediction algorithm is pretty fair. If we end up with a stunningly warm Indian Summer/Autumn, then no doubt you can lower it again for the final few months. :)