Why is there more ‘risk’? I’ve been paying on demand with Ecotricity for the last 12 years. How do you calculate £200 more? You can’t know what my usage is.

Louise

I use averages to reference that - £150-£250 a year more is the average extra cost for POD compared to Direct Debit or Prepayment. I am a forum volunteer who doesn’t work for OVO, so I act independently of the company.

The risk of non-payment is significantly higher in general than all other options - especially because payment can’t be collected automatically which in turn increases the costs to the supplier and therefore the customer.

Like I say, I’ve been paying on demand for a long time and always paid my bills when due. I’m a single (pensioner) person in a 1-bed flat. What is the average cost for gas and electric for me? I really don’t use a lot… I appreciate you’re just a helper here. I’m puzzled why it’s so difficult to sign up as a new customer and to pay on demand. I guess direct debit is mainly for the benefit for the supplier. However, if I had a direct debit and didn’t want to pay, for some reason, I could cancel it if I really wanted to.

Louise

That will be calculated when you get a quote 

I think I’m going around in circles here - if OVO doesn’t want my business I might just as well give up trying to give it to them!

Louise

You need to create an account with OVO even if you don’t want to stay - any attempt to switch before having an account will be blocked.

Your options are either:

1. Sign up online with a Direct Debit and switch to POD later if you really don’t like DD
2. Sign up by phone to use POD from the start

If you do neither, it will eventually trigger OVO’s debt collection process.

I don’t understand why I can’t just stay with my current supplier if I want to? 

How easy is it to switch from DD to pay on demand? I don’t owe OVO anything significant as I’ve only just moved in yesterday. The last bill at this address was from Scottish Gas at the end of August but I believe they became OVO? The flat (housing association sheltered accommodation) has been empty for a while until I moved in.

Louise

Cancellation of the Direct Debit would cause the account to move to POD. But I must warn you that doing so will increase the tariff rates and may incur an exit fee if you were on a fix deal.

Scottish Gas is actually British Gas 

Well there is no direct debit at the moment… I asked how easy it was to switch from a direct debit account to pay on demand? 

Louise

You need to trace the supplier first - it sounds like it might not be OVO.

For Electricity, please use https://www.energynetworks.org/customers/find-my-network-operator to trace the DNO and then get in touch with the DNO to trace your supplier.

For Gas, please use https://findmysupplier.energy 

Hi @louise515

If there is gas at the property, this is a really easy tool to find out who the current gas  supplier is if you are at all unsure. 

https://findmysupplier.energy/

So for me

Usually but not always the gas and electricity supplier is the same., 

There is a separate way to check who the electricity if needed

As far as I know OVO is the supplier. They are definitely the gas supplier and I think they supply the electricity also. 

So how easy is it to switch from direct debit to pay monthly on demand with OVO?

Louise

Hi @louise515

If there is gas at the property, this is a really easy tool to find out who the current gas  supplier is if you are at all unsure. 

https://findmysupplier.energy/

So for me

Usually but not always the gas and electricity supplier is the same., 

There is a separate way to check who the electricity if needed

 

Yes, that url was mentioned above. I previously confirmed OVO supplied the gas and electricity here.

I’ve had enough for one day. I’m too old and tired to do any more battling.

Louise

Hey @louise515,

I’m not sure why the previous agent couldn’t hear you, I’m sorry about this.

If you call 0330 303 5063 you’ll be able to set up a variable plan, where you pay on demand. 

You’ll need to set up an account with OVO even if you wish to switch away as you’ll be liable to pay us for the interim period between suppliers. 

This topic may be helpful to you:

It’s easy and automatic. If you want to stop paying by Direct Debit, just cancel the DD mandate and your account will automatically be transferred to payment on demand (otherwise referred to as Standard Credit, SC).

How much extra this will cost depends entirely on your usage; here are some comparison figures produced by Ofgem for an average household:
  

Note that the daily standing charge is quite a bit higher for SC customers; this means that the premium paid by SC customers is higher for those with low usage, which I suspect you are one of. 

The only problem I can foresee if you choose to take the simple route and opt for DD is that OVO will have to calculate the monthly amount initially on the basis of ‘average’ consumption for your type of household, which may be very different from your actual usage. This will be reviewed after a couple of months and quarterly thereafter. If you have a smart meter, this should be relatively painless. Otherwise, you should submit regular meter readings - e.g. weekly - to provide evidence for an adjustment to the DD amount.  

‘Old’ is a relative term! If you’re an OAP, you can ask to be put on the Priority Services Register. This may have some advantages for you: perhaps make it a bit easier to get through to the support staff, for example.

Well there is no direct debit at the moment… I asked how easy it was to switch from a direct debit account to pay on demand? 

 

It’s easy and automatic. If you want to stop paying by Direct Debit, just cancel the DD mandate and your account will automatically be transferred to payment on demand (otherwise referred to as Standard Credit, SC).

How much extra this will cost depends entirely on your usage; here are some comparison figures produced by Ofgem for an average household:
  

Note that the daily standing charge is quite a bit higher for SC customers; this means that the premium paid by SC customers is higher for those with low usage, which I suspect you are one of. 

The only problem I can foresee if you choose to take the simple route and opt for DD is that OVO will have to calculate the monthly amount initially on the basis of ‘average’ consumption for your type of household, which may be very different from your actual usage. This will be reviewed after a couple of months and quarterly thereafter. If you have a smart meter, this should be relatively painless. Otherwise, you should submit regular meter readings - e.g. weekly - to provide evidence for an adjustment to the DD amount.  

‘Old’ is a relative term! If you’re an OAP, you can ask to be put on the Priority Services Register. This may have some advantages for you: perhaps make it a bit easier to get through to the support staff, for example.

 

Yeah, I’m a single pensioner in a 1-bed flat. It has gas and electric. I expect my usage to be relatively low. If I want to switch, presumably I could do that after setting up an account but without committing to OVO? How long do I get to still be able to switch? My previous supplier was Ecotricity. I don’t think they charged me a higher tariff for paying monthly on demand. I’ll try and get quotes from both.

Thanks

Louise

Then you might consider getting put on the PSR. Even if your only vulnerability is being old (!), it might come in useful some day.  

I’m afraid that you are committed as soon as you switch a light on; you have to have a contract with a supplier to have a supply. To switch supplier shouldn’t take more than a few days.

I just had a look at their tariffs, and I was surprised to see just how much higher they are than OVO’s. While there doesn’t seem to be any difference according to how you pay, the cost per unit on the Standard Variable Tariff (SVT) is a whole 30% higher than I’m paying with OVO. Whatever Ecotricity’s green credentials look like, it would take a lot more than them to persuade me to pay £220 extra a year* for the privilege of having them as my supplier. You might have a look at Octopus, a very popular (if bewildering) choice nowadays.   
 

*   2700 kWh x 27.25 p/kWh (OVO) ≈ £722
    2700 kWh x 34.90 p/kWh (ECO) ≈ £942

Here in Glasgow I pay 33.42p/unit so not quite as much as you’ve quoted. OVO standing charge is higher. My estimated annual consumption was  2964 kWh but that’s electric only. Gas is obviously a lot cheaper for heating. Where I’ve moved to there is gas central heating but an electric shower, and also double glazing which I didn’t have before so hard to estimate new usage. I’ll have to try and do some calculations. I’m betting there isn’t much in it, especially allowing for paying OVO extra for paying on demand. I find it very annoying that all energy companies seem to have put up their standing charges so that even minimising energy usage means the companies still get you via the standing charge…

OVO quotes me (online) £111/month inc vat. (Direct Debit). It’s annoying they won’t quote pay monthly on demand. I paid £61.67 for my last full Ecotricity bill. I submit a reading each month, they send a bill - I pay it straightaway. Simples

Thanks

Louise

Yes, rates vary considerably across the country. Still, that’s a big number.

The standing charge is severely regulated by Ofgem, so most companies charge the maximum allowed. It includes only a modest profit for the supplier.

OVO chose not to increase their standing charges for existing customers this quarter. 

You can see OVO’s On demand rates on this page: Our prices | OVO Energy . It looks like you could get a tariff costing around 26 p/unit. That would drop by about 5% for payment by DD, but the on-demand standing charge is more than 11% higher than that for DD - about £25 a year.

When you get your calculator out, beware of VAT. OVO’s rates are quoted on the Plans page ex VAT, so make sure you’re comparing like with like. This is what I got for a random address in Glasgow:
  

There is another plan, but I’m not sure it’s available if there’s gas heating. You’d have to ask OVO.

Good luck!

kFull disclosure: I’m also an OAP living alone in a one-bed property . No gas here, though.]

Way too many plans! I’m sure they purposely include non-applicable plans just to confuse people! They don’t mention VAT on the linked page - annoying!

Most companies give you some benefit for dual fuel but OVO doesn’t seem to?

“There are some available plans that you can’t buy online. You’ll also find energy prices for plans that aren’t available at the moment.” How user friendly is that!

They could easily make it all a lot simpler with useful filters and/or formatting.

Thanks anyway

Louise

That page is intended to show literally every possible tariff that exists (and possibly ever existed) for your postcode. It’s not intended to be the one you use to actually make your decision per se - you want https://switch.ovoenergy.com for that.

It was pretty hopeless for my purposes. What’s the point in showing every tariff that’s ever existed - or not! It just confuses elderly people like me.

Anyway, I’ve signed up with a direct debit now. I estimated my gas/electricity usage based on my last year’s electricity which came back as £71.45/month. As yet, they haven’t asked me for any meter readings?

They mention a 14-day cooling-off period - not sure what that implies? I presume I’ll hear back from them at some point?

Louise

It’s all in the eye of the beholder. That tool is intended for transparency - especially as there’s still some 2021 tariffs linked to active contracts right now.

Well, I signed up for the PSR thing - had never heard of it. Still not sure what it’s for… Where I am is sheltered accommodation anyway so will have daily contact with OKEachDay via a touchscreen (once they come and install it). 

Thanks

Louise

But there are filters and things - didn’t you find them? I only found two tariffs for electricity: