Unexplained change to direct debits?

This happened to me at the beginning of the week, my direct debit was due to increase from £154 to £167 per month despite having a £255 credit balance. Not a problem I thought, I’d just deduct my credit balance to offset the rise. Not possible, one has to “apply” for a refund, with Ovo deciding if they’ll grant your request. How about switching to a cheaper tariff then? No. So I went on USWITCH and switched to a 1 year fixed rate, with OVO, for £120 per month based on my actual usage.

It didn’t end there though. OVO then decided to charge me an exit fee of £95 twice or £190 thereby reducing the credit balance to £60. Day light robbery if you ask me, but I’m a bit nervous now of this credit balance nonsense. It seems like a scam to me.

Look Before You Leap is a strong piece of advice there. You exited a Fixed Rate Tariff early, so I’m afraid you’re liable for any Early Exit Fees that apply to it.

Also, you must remember the idea of being on a Direct Debit of this type is you build up credit during the summer and burn it during the winter with the ultimate goal being to come out at around zero at the end of the yearly cycle. Taking a refund in this situation would have probably caused your monthly payments to increase further rather than stay as-is. Winter isn’t usually an ideal time to be taking refunds either tbh...

Gotta read the small print!

Additionally, the OVO Forum strongly recommends caution over switching between tariffs with the same Supplier via third-party tools while already on-supply with that Supplier - you risk creating a second account which can make things more messy than they need to be. You’re usually best talking to customer service to do that so that you keep the same account.

I accept the exit fees, but the t&c’s quote a £90 exit fee for the 2 year fixed rate that I was on, they’ve charged me £190. My actual usage, in the current months, is less than my direct debit hence the revised quote of £120 via a 3rd party. I guess it comes down to trust and I don’t trust OVO or any of these Utility companies for that matter.

It’s £95 per fuel. If you’re Dual-Fuel and exit on both (which it sounds like you did), £190 is correct.

I’ve checked the T&C for all of OVO’s plans just now - it’s pretty well written that this is the case.

Hey ​@Pumchdrunk 

I’m sorry for the issues you’ve had.

Blastoise is right here:
 

This topic gives a more in depth look at how OVO calculates direct debits:
 

You should be able to request a refund of credit if you’re on a fixed rate plan provided you keep one months direct debit amount as credit. These topics explain if further detail:

Before we allow a refund of any credit you’ve got in your OVO account, we first need to make sure that your account balance is accurate.

If you don’t have a smart meter, make sure you’ve submitted a meter reading in the last 28 days. If you’ve done this and are at least three month’s direct debit amount in credit, you can then ask for a refund via the ‘Payments’ page of your online account or OVO app (download for Android or iOS):

You can apply for a refund of up to £500 online and the balance will return to your bank account in no more than 10 working days (in most cases it will be within 4 working days). Find out more about requesting a refund online here.

If you’d like more credit refunded you can contact our Support Team who can initiate refunds up to £2,000, however if the refund is over £599, we will need to check the account has been billed to smart or actual meter reads and request photos of the meter. 

If you’re on a fixed rate tariff, you’ll still be required to keep one month's worth of direct debit as credit in your account. If you’re on the Variable tariff you aren’t required to leave any credit on your account, although it is advisable.

My DD has been raised without asking me, very not nice OVO! My balance is always in credit, even if I would stop paying that would cover whole winter including increased gas usage for heating. That kind behaviour is not customer oriented and that is sad, because I was always loyal to OVO. I have read all previous conversation on this topic and am aware of explanations, I’m just very not happy (politely saying). Despite, I haven’t been on the fixed contract and the only change happened is winter, which is no different to the winter last year.

I'm re-reding this thread trying to understand if there is anything I can do, and I see this. In my case it is approx. £200+ credit, and not lower than £100 this winter, but my DD was increased without my agreement. 

I really liked that I could keep some credit on my account and be in control of my spending. To have credit on my OVO energy account and pay less during this winter isn't the same than having this credit back to my bank account and pay the suggested DD. Even if looking at plain number it is the same. 

Is there an option to pay as you go, like exactly as mush as I used (not pre-paid)? It feel the only option I would find fair at the moment. 

You can always contact Customer Support and ask them to reduce your DD payment again.

They will generally agree to a reduction straight away, particularly if /when you are in credit.

Sometimes on your online account there will be an option/button where you can reduce it yourself by 10% for 3-months.
(I’ve used it myself more than once as my DD’s are generally calculated around 10% too high, I know why that happens for me but it’s a bit complicated and will take time to fix. I’ve just had a new gas meter which should help).

It isn’t always shown for you to DIY though, and if it isn’t showing for you (or if you want a more than 10% reduction) then talk to support.

Anyone affected badly by the change in the DD calculation, please see this thread and consider adding a vote:

I’m sorry to hear this, you’re meant to have several communications from OVO before a direct debit is increased. It’s worth checking on the online account that we have the correct contact details for you & your emails aren’t going into the spam folder ​@costeek.

Nukecad is quite right here. Please keep us posted with how you get on.