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Rank 1
August 15, 2019
Solved

Does the Direct Debit contract calculation take into account any credit on my account?

  • August 15, 2019
  • 36 replies
  • 985 views
Does the 2 year contract calculation of direct debit amount take into account any credit on my account? If it is not taken into account the renewal direct debit is too high.
Best answer by Tim_OVO

Updated on 04/11/24 by Abby_OVO

 

For a helpful introduction to Direct Debit calculations watch the video below:

 

 

How does OVO work out my monthly Direct Debit?

 

To work out your monthly Direct Debit amount, we:

  • look at your energy use so far and estimate how much you’re likely to use by 31 March 2026. This includes any costs, such as standing charges and add-ons

  • take away your current balance, factoring in any credit or debt

  • divide the result by the number of payments left until 31 March 2026, which gives us your monthly amount

We aim to bring your balance to £0 by 31 March 2026. This way, you won't owe us anything, and we won't owe you anything, making it easier to manage your energy costs.

We regularly check your Direct Debit to make sure your balance is on track. 

 

Why is my Direct Debit increasing when my balance is in credit?

 

This could be down to a few reasons. Sometimes, even if your balance is in credit, your monthly payments still need to go up.

Usually, this happens if it looks like your balance is going to drop below £0 by 31 March 2026. We want you to avoid building up any unexpected debt – we never want that to happen to you. So we work out if that’s likely by predicting how much energy your home will use, then checking if your payments will cover it. 

It’s also useful for your balance to be in credit. It can act like a pot of money to cover those times when your energy use might be higher. For example, you’re likely to build up credit in the summer months when energy use is lower. But you might need to use this credit in the winter months when it’s colder and darker – and your energy use is usually much higher. 

We regularly check your Direct Debit to make sure you’re paying the right amount.

 

What’s a Direct Debit Check In?

 

As the amount you use may change, we’ll regularly check that the payment amount is enough to cover your energy costs and leave you with a clear balance at the end of your plan. There is a helpful breakdown of how we work this out on your Direct Debit calculator which can be found on the ‘Payments’ page of your online account or OVO app (download for Android or iOS):

 

Need more help understanding your Direct Debit recommendations? Check out the great guide below:
 

36 replies

Newcomer
October 5, 2022

The reply from OVO is unbelievable. Basically saying that they are ignoring the Govt Price cap - which is there to benefit everyone - and their promise on their web page/app that they’d apply the cap to all accounts and no need to contact them is incorrect.

I don’t think that have a strategy or a process at all and are reliant on customers contacting them.

I now need to call them as they closed the WhatsApp after I didn’t reply after 5 mins. 
 

“I can do this for you how much would you like refunding, also in regard to your tariff because you had agreed a fixed tariff before the price cap this is why the prices are higher, we can cancel your fixed tariff and put you onto the variable tariff if you would prefer”

Newcomer
October 5, 2022

So a wee update after calling them.

 

Refund - sorted 

Energy cap - girl I spoke to was unable to make the changes to my account to ensure I benefit from the price cap. It’s been passed to their account team but there’s no timescale for them to work towards but she did say it would be backdated.

 

I’ll diarise for 2 weeks and call them back as don’t have much confidence that anything will change. 

juliamc
Rank 20
Rank 20
October 5, 2022

You said previously that your smart meter showed a rate of 54p. Is that the rate you see on your Plan viewed on your online account? If it is you will be moved to the Government rate automatically. You don’t need to contact OVO, just wait. There are thousands of customers and they can’t all be done at the same time !!! 

Newcomer
October 5, 2022

You said previously that your smart meter showed a rate of 54p. Is that the rate you see on your Plan viewed on your online account? If it is you will be moved to the Government rate automatically. You don’t need to contact OVO, just wait. There are thousands of customers and they can’t all be done at the same time !!! 

It is the rate that I have on my plan via my online account.

The person I spoke to was quite clear, and it backed up the WhatsApp message, that there would be no automatic change to a lower tariff.

Disagree with your last point as there’s such a thing as identification and bulk batch processing, but let’s not go there.

 

I urge anyone in the same position to take matters into their own hands and speak to OVO. 

Newcomer
October 5, 2022

@smillar 

Under the EPG your fixed electricity price should come down by 17p (17.85p VAT incl) to a lower figure.  That is law.  The average (but who is average) price under the EPG is 34p per unit but it is regional and ranges between 33p and 36p (all pre VAT).  OVO will probably make arrangements to take your unit price down to the EPG floor (same as the variable rate unit prices) but standing charges are not covered by the EPG and whether they are retained or changed seems up for grabs.

 

What region are you in.?  Your advisor gave you duff information and I would make a formal complaint.  They can listen back on the call and apologise. Meanwhile @juliamc ‘s advice is spot on.

Eon and EDF customer. Don't think smart meters are worth the expense.
Blastoise186
Super User
Super User
October 5, 2022

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