Solved

Why is my renewal quote so high this year?

  • 7 January 2019
  • 40 replies
  • 1188 views

We have been with OVO for nearly a year, no complaints and would like to stay. However, our renewal is up and our quote says we’ll have to pay £140 per month from Feb 2019. We currently pay £116 and are £240 in credit??
We have been on comparison websites and have quotes for £119 per month. Can OVO match this monthly payment or shall we take our credit and switch to another company? Thank you.
icon

Best answer by Nancy_OVO 9 January 2019, 13:02

Hi @Raq

The figure you're seeing is a suggested monthly payment amount. This is based on your average consumption and the new prices. If you click the relevant 'renew' button online, your Direct Debit won't be increased. It will remain at the current amount for the time being. If you have a credit balance on your account at the moment, you can use this to offset any difference in unit rates should you choose to renew.

You can monitor your account balance by giving regular meter readings and checking your credit on future statements. If you notice your credit is decreasing, you can always increase the Direct Debit accordingly in the 'Payments' section of your online profile.

Hope this helps,
Nancy
View original

40 replies

Userlevel 6
Badge +4
Hi @Raq

The figure you're seeing is a suggested monthly payment amount. This is based on your average consumption and the new prices. If you click the relevant 'renew' button online, your Direct Debit won't be increased. It will remain at the current amount for the time being. If you have a credit balance on your account at the moment, you can use this to offset any difference in unit rates should you choose to renew.

You can monitor your account balance by giving regular meter readings and checking your credit on future statements. If you notice your credit is decreasing, you can always increase the Direct Debit accordingly in the 'Payments' section of your online profile.

Hope this helps,
Nancy
I pay £85 pm which is spot on and the required payment to renew is £116, which seems OTT. I haven't yet clicked on the renew option as it's too expensive, but I'll check it out now if I can reduce the payment.

In the year from Feb 2018 to Feb 2019, my energy costs with OVO were £1089.

Now they are predicting that the cost for 2019/2020 will be £1328.

That''s a 31% rise.

Can someone please explain?

I’ve just today signed up for 2 year fixed payment, direct debit due 12th march, will the new payment start then
Userlevel 6
Badge +4
Hi @Mac,

I've just moved your post over here. Are you talking about the suggested Direct Debit upon renewing? If so, more info above ^^

Cheers,
Nancy
My fixed rate contract ends soon and the Better Energy rate is quoting £30 cheaper than im currently paying. Does that mean I've been on the wrong tarrif or is this new monthly rate a guess?
Userlevel 7
Badge +2
My fixed rate contract ends soon and the Better Energy rate is quoting £30 cheaper than im currently paying. Does that mean I've been on the wrong tarrif or is this new monthly rate a guess?

Hi @Mumillion - yes that will be an estimate based on the available prices and your annual usage average.

See this thread for more info ^
Just started a new year again with OVO, perhaps rather foolishly.
The new contract gave prices and stated that we should continue to pay the same as last year for the time being. The next statement we received stated a requirement to increase our payments by 24% to cover price increases over the past year, as our payments were "far below the recommended minimum" despite the fact that it showed we were in credit.
NOTE My own calculation based on previous years payments show that the request is eccessive .
The latest statement indicates no change in payment has been made.
As far as I am aware the direct debit is controlled by OVO so why hasn't the payment increased?

As an observation I find it a disgrace (as do many of your customers) that if I had aproached OVO directly I would effectivly been charged a financial penalty payment for having the temerity for doing so, especially as the request for this response is viewed by me as confidential.
I await your answer on this one as there has not been any answer to this when several customers have asked the same question with no adequate response.

As for next year we will definitly move to another supplyer and writting to Which? (as we are members) to wonder why they show a good star rating for customer service when there is no service unless you wish to pay extra for it
OVO estimate my energy costs for this year at £1381. That's £115 a month.

They've just suggested that I raise my monthly payment from £171 to £226. Even with the £410 of debt I'm in, that seems like quite a wild leap.

I'm in this position having followed their advice at every stage as to what my monthly payment should be.

Would I be right in suggesting that OVO are not very good at any of these figures?
Userlevel 6
Badge +4
Hi @tonyp227 and @daveshamps

I've moved your posts over here where you can find more information about Direct Debit changes when you renew.

It's important to mention that the Self-Service Reward is a discount applied as a thank you to customers for managing their account themselves online. There are certain things that you won't be able to do online, and sometimes customers may not be able to find the information they need on our website FAQ or our Forum. In these instances, it's perfectly okay to give us a call or get in touch via email without any risk of losing your reward. More information about this here.

Hope this helps
I was just contacted by Scottish Power who says they can save me £619+ this year - paying £218 each month. I've been with ovo for a good few years and want to know how you can beat their prices. Please reassure me so when they call back, I have an answer.
Look at you standing charges (rate per day) for each energy, and then what the rates are for both energies per unit, or kwh, make your decision on that not a pie in the sky amount they say you will pay per year.
Thank you Tufty. Appreciate your reply 😊
I have just renewed my contract with OVO.
I was expecting an increase in the tariff I pay for gas and electricity.

OVO estimate my energy costs this year will be £1,148.05. They recommend a DD payment of £114 pm. I have been paying £94 pm without any issues re debt, etc. £114 pm represents an increase of 21.2% in the fee I pay. Did energy prices go up that much?????

£1148.05 / 12 = £95.67 pm I would be happy to pay £100 if it keeps OVO happy, but, the OVO site will not allow me to set a lower DD than £114 pm. It would appear your algorithm is taking the estimated yearly use of energy and dividing it by 10!

At the moment I regret renewing my contract to be treated shamefully, and like a child.

Yes, I know you will pay interest on monies in credit. The issue is I have had no choice in the matter.

Please could this be rectified?
Userlevel 5
Badge
Hi @Raq

The figure you're seeing is a suggested monthly payment amount. This is based on your average consumption and the new prices. If you click the relevant 'renew' button online, your Direct Debit won't be increased. It will remain at the current amount for the time being. If you have a credit balance on your account at the moment, you can use this to offset any difference in unit rates should you choose to renew.

You can monitor your account balance by giving regular meter readings and checking your credit on future statements. If you notice your credit is decreasing, you can always increase the Direct Debit accordingly in the 'Payments' section of your online profile.

Hope this helps,
Nancy


Sorry to hear you feel this way, @Catbells, I've popped your post here, there's plenty of relevant info above.

Thanks!
Amy_OVO,
Thanks for the reply. I have also received an e-mail from Customer Services - you now have a happy customer 🙂 DD payment now £96 pm.

Looking at the questions about recommended DD payments there appear to be a lot of confusion as to how the levels are calculated. I have tried to follow some of the links supplied by Customer Services - many appear to be 'dead'. Mind you I did not check how old the original query was.
At the moment (Aug 2019) the following link is live - https://www.ovoenergy.com/help/direct-debit-review#calculating-your-new-direct-debit-amount

I realise OVO has to err on the side of caution when recommending DD payments. The average increase appears to be about 30% which far outstrips inflation, energy price increases, etc. I feel to algorithm used to calculate the recommended level needs tweaking.
Hi @Raq

The figure you're seeing is a suggested monthly payment amount. This is based on your average consumption and the new prices. If you click the relevant 'renew' button online, your Direct Debit won't be increased. It will remain at the current amount for the time being. If you have a credit balance on your account at the moment, you can use this to offset any difference in unit rates should you choose to renew.

You can monitor your account balance by giving regular meter readings and checking your credit on future statements. If you notice your credit is decreasing, you can always increase the Direct Debit accordingly in the 'Payments' section of your online profile.

Hope this helps,
Nancy

Hi Nancy, when you said it will not be increased and remain at the current amount for the time being when will it change? Will it be when my old contract is officially over or is it by my choice?
I am paying a comfortable DD at the moment but the renewal options are double what I have been paying so i am reluctant to change in case i am stuck with a high DD that will disrupt my budgeting.
I would love to get some clarity on this cause OVO was very helpful when i moved houses and was having issues with my economy 7 but the renewal rates are considerably high when there are big 6 companies offering half the DD charge...
Userlevel 5
Badge
Great to hear we've been helpful, @jhk10006, I'll hopefully be able to offer some clarity on the situation.

We actively check Direct Debits on a monthly basis to make sure you're paying the right amount, to avoid debts later on in the contract.

The reviews are based on estimates of what you'll use over the course of a year, so sometimes we may recommend an increase even if in credit.This can be the case in the summer, when you are using less and building up a credit, but we anticipate the higher usage over the winter.

Effectively what this means is as long as you are paying a Direct Debit that covers your consumption, or have enough credit on the account to use up to offset the Direct Debit amount, your Direct Debit will remain the same.

We will always recommend a Direct Debit increase prior to us automatically increasing the payment.

I hope this helps!
My current direct debit is £126 per month and now the Recommended minimum Direct Debit Amount is £255.00 which seems very high (a 102% increase!). I am willing to increase the direct debit a reasonable amount but your system won't allow me to do anything less than £255 per month. How do we increase the direct debit to say £175 which would be more reasonable?

Thanks.
Agh! I just checked and the new recommended minimum direct debit amount is £280.00, a 122% increase! As others have pointed out I think there is something very wrong with your projection calculations. it's far too aggressive.
As an existing customer my current deal ends 02/10/2019 so why are OVO not trying harder to keep my custom ?

My current charges are 0.113p with a daily charge of 27p . Accepting of the fact costs will have increased I'm being offered 0.1722 to remain with a daily charge of 0.19p which suggests a move away

Any bright ideas ?
Userlevel 3
Badge
Same here I'm afraid. The difference is huge! And with an ev to feed, it affects our transport costs as well.?

Overall the annual difference comes to over £400 a year, £500 if we are prepared to go with an unknown new name. E.ON and British Gas can both offer annual savings of around £400.

Come on Ovo, either compete, or tell why you are worth that extra.
Userlevel 3
Badge
Just read that British Gas are lowering prices. Hmmm. Come on Ovo.
Userlevel 7
Badge +2
@Gum168 @oakesaro we offer the best we can, prices wise. Every single penny on that unit rate and standing charge has been costed - believe me we want to be the cheapest!

What we're not prepared to do is offer something that's loss leading to new or renewing customers, and overcharge those on the variable tariff because they're not price savvy.

We treat all customers fairly, and offer the best prices we can to all. We also pride ourselves on service, and cutting edge technology, as this is also something our customers value. Have a look at those renewal prices, and consider the benefits of a new supplier vs a supplier like us. 😋
Userlevel 3
Badge
The letter I have from Ovo talks about Lumo. For me personally, I want to keep our smart ev charger "smart". The trouble is, a £400 + difference is an awful lot. I'm trying to find out if Lumo, your sister company, will mean the smart charger still connects. I don't want to leave Ovo, I really really don't, but as I say, it's a £400 + annual difference. That's quite hard to swallow for what is effectively the same result at our end - it all comes down the same pipes and cables and runs our house. I'm really torn.

I've really enjoyed being part of the smart charger research trial, and I feel loyal to OVO, but that is a lot of money. Uk call centre isn't much good either when the tariff we've been on is online only. I'm still waiting on a reply to an email I sent this morning, asking about economy 7, I have to wait, I can't get a quick answer by phone.

I haven't decided what to do yet, it's not a done deal that we move away, and this is more of a moan and vent than a decision, but I'm sure you can understand where I'm coming from. Not asking for loss leader prices, that doesn't do anyone any good, but £400 a year, £34 a month - eek, it's a lot! And that's on E.ON and British Gas prices who have been around a lot longer than OVO.

Sorry, def not trying to be awkward, I genuinely do want to stay with OVO, but we have to be more canny with our money now as hubby is about to retire. Does OVO really offer £400 better value? That's what I keep asking myself. It's not the actual price I'm looking at, it's the value for money. What do we get extra for that £400 a year? Security of an established company (same for British gas and E. ON), customer service, (well yes and no, as in we save by staying online only, but that means less convenient and slower contact with customer service), great forum, yes, chance to help R&D, yes, smart ev charger, yes, but is it worth £400 a month going forward? Smart charger benefits the environment and the grid more than us, as it works at the moment. I suppose it's the cost of trying to live a greener life.

Hmm, as I typed that last bit I'll admit I was thinking, - we are lucky that we can afford to go a bit greener, and it's important to me. Maybe it's the drive for lowest possible prices that's contributing to accelerated climate change, cheap palm oil for example. Hmm, Cost or not, I may have just swayed myself towards staying. 😂😂😂😂

I'll have to sleep on this a lot more yet.

Reply