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November 1, 2024
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Unexplained change to direct debits?

  • November 1, 2024
  • 98 replies
  • 3313 views

I have just noticed an unexplained 45% increase in my minimum direct debit payment caused by today's change to the calculation in the Direct Debit Calculator (now calculating through to end of March 2026, rather than the end of March 2025).

The impact of that change, if it is intentional, is that a lot of people (like myself) who already have a significant credit balance and are on course for a very healthy credit balance come 31st March 2025 are potentially still going to have to increase our direct debit payments and build up even bigger, and wholly unnecessary, credit balances (and further increase our direct debits if we want our credit balances refunded at the end of winter).

Are any of the OVO staff who monitor the forum able to share the full details of the changes and the logic behind them?

Also flagging that the changes don't seem to be compliant with the T&Cs.

Best answer by Emmanuelle_OVO

Updated on 11/06/25 by Abby_OVO

 

We're sorry to hear you're concerned and we can understand why you might be. Here's some more information on this, to make sure you have all the details. 

 

How we work out your Direct Debit amount

 

The aim is to make sure you have credit for 1 month’s payment in your OVO account by the end of March. This is to help cover any change in your home energy use over the course of the year. 

 

For new customers, this only comes into effect once you’ve reached March. When you first join, the aim is to make sure you have no balance left to pay after 1 year.

 

How we check you’re paying the right amount

 

Your Direct Debit payment amount will be regularly reviewed to make sure it still covers your home’s energy use.

 

We’ll let you know if your Direct Debit amount needs to change to keep your energy account balance up to date.

 

When your payment amount might change

 

Your payments might need to go up or down if something changes. For example:

  • Your home is using more or less energy than predicted.

  • Your energy prices have changed or they will soon, to stay in line with the price cap.

  • You’ve moved to a different tariff. 

  • You’re likely to have less than a month’s credit in your energy account by 31 March. This credit is there in case your home energy use changes over the course of the year. For new customers, this only comes into effect once you’ve reached March.

  • You've missed a monthly payment, lowered your Direct Debit, or got a refund recently.

  • You’ve chosen an add-on, like Greener Energy.

 

If your Direct Debit amount needs to change, we’ll let you know.

 

We’ve got some other helpful topics all about Direct Debits which may be helpful if you’re still looking for more information:

 

98 replies

Rank 2
December 2, 2024

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.

What kind communications do you mean? I have received an email suggesting to increase my DD amount. I disagreed with it,  so left the amount the same. Then, it was increased by the company. Is that a communication? Also, I’m certain about my email address and always aware about the spam folder, it’s not the case here. Right now your company reduced the satisfaction of your customers and put an additional pressure on your customer service phone lines. It was unnecessary. 

Blastoise186
Super User
Super User
December 2, 2024

By “leaving it the same” it sounds like you responded by doing nothing, which means you would have agreed to the changes by way of deemed consent.

You need to actively contact OVO to raise such objections if you want the objection to be valid.

Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
Rank 2
December 2, 2024

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.

I understand what you mean. Phone call is not always the option for some people. 

Rank 2
December 2, 2024

By “leaving it the same” it sounds like you responded by doing nothing, which means you would have agreed to the changes by way of deemed consent.

You need to actively contact OVO to raise such objections if you want the objection to be valid.

It doesn’t make sense. I would agree if I would increase the amount. I didn’t increase, that meant “no”. Also, I don’t remember the letter saying something like “if you would like to keep your DD amount the same, please contact our customer service, otherwise it will automatically be increased by the amount mention in this letter”. That what I would call as communication.

Blastoise186
Super User
Super User
December 2, 2024

That’s usually how these work though - it’s a prompt to get in touch if you want to talk about it. IIRC it does count as a communication about an impending change.

Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
Firedog
Super User
Super User
December 2, 2024

I don’t remember the letter saying something like “if you would like to keep your DD amount the same, please contact our customer service, otherwise it will automatically be increased by the amount mention in this letter”. 
 

In the Core Terms and Conditions (§7.11, bullet 5), it says: “We can ask you to increase your Direct Debit amount anytime ... If you don’t do this by the date we give you, we can automatically increase your Direct Debit ... “

In other words, if you don’t do it, we will.

That’s probably fair enough, except that in your case - and presumably that of others grumbling in this thread - neither of the conditions required for this to happen applies:

“… if prices change (in line with this contract) or you’re using more energy than we estimated.“ 

All that’s changed is that they moved the goalposts by extending the calculation period. That doesn’t, in my view, entitle them to use this clause to increase your DD. 

It would be really helpful if someone were to submit a formal complaint and persevere with it for the eight weeks needed to be able to escalate it to the ombudsman, to find out what he would say about what I reckon to be an unfair change. I’d do it myself, but I’ve not been asked to change my DD, so I don’t have anything to complain about.

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Rank 2
December 2, 2024

@Firedog I understand what you mean. But it looks like “we suggest to increase your DD, if you won’t - we’ll do it anyways”. There is no choice given. And I agree with you saying: “All that’s changed is that they moved the goalposts by extending the calculation period”. 

Right now I don’t have a mental capacity for the formal complain. But if somebody would assist me in that, I would be happy to try.

Emmanuelle_OVO
Retired Moderator
Retired Moderator
December 3, 2024

Hey ​@costeek 

If phone calls aren’t the best option for you we also have a webchat option:

 

Our Support team’s web messaging and WhatsApp opening hours are:

  • 8am - 6pm Monday to Friday 

  • 9am - 2pm on Saturdays
     

You can see all open contact channels via our Help Centre

Renewable Energy? Big Fan.
Newcomer
December 9, 2024

I am fuming this morning, after some long conversations with people at the helpdesk several times over the last few weeks. Originally (wrongly) thought and was advised that the suggested increase in my DD was down to having a smart meter installed and it not yet updating the usage. I have opted to change from an Economy 7 to an Economy 10 meter for electric, and a standard one for gas. 3-bed mid-terrace property with rubbish insulation and drafts. 

 

Now I have received an email telling me they have increased my DD to almost double what it was from £116 to £221. I am in credit by 2x my previous DD (almost £300!). Without checking with me - made me very cross and I do apologise if any of you had to dealt with me being irate this morning!! 

Gentleman on the phone went away and said actually. yes, that was their fault that they hadn’t contacted me first to ask me to manually review it, and that they should have got in touch to ask me to look at it. Then offered to raise and then close a complaint for me about it, and £15 apology money - I am not sure how raising it and then closing it again will solve any problems? 

 

Anyway, I was on the phone to him for a good 40 mins, going round in circles about how they got figures and where the kwh figure was pulled from - turns out he couldn’t help me. Put me through to a lovely Scottish gentleman who has been more useful. My DD has been changed back to where it was, fixed for 3 months now, and then we will review it again in 3 months. Still no clearer about how they calculate my usage going forward (in kWhs) but this gentleman will raise the issue for me higher up again. 

 

So my advice is call them and query it. Mine clearly didn’t need to be raised to keep me in credit, I can’t see how I am going to go from £1740 worth of electricity and gas usage a year to £3600 by using the same amounts, even with the price increases that may or may not happen - and no-one can tell me why that value is there, beyond telling me that the computer came up with the calculation/prediction. 

 

An aside, they keep having to estimate my usage as my meter keeps stopping sending readings, and they are estimating double the usage on average from the last several months. ie, actual usage sitting at 33-42kwh per day, but days when they have estimated usage are around 70kwh. Can easily see which days my gas meter wasn’t sending readings!!! Finally catches up once I call OVO and they poke my meter from their end….  

 

OVO need to sort this out, I am becoming very tempted to leave after using them since we moved in here 13 years ago. 

Firedog
Super User
Super User
December 9, 2024

Still no clearer about how they calculate my usage going forward (in kWhs) ...

 

It’s not easy with an Economy 10 tariff, but most of the numbers you need are on your Plan page. The first to look at is the Future Annual Consumption (FAC). This is supposed to be the same as your actual consumption over the previous 12 months. You’ll have to check your bills or meter readings to see just what this was. Find your latest bill and note down the meter readings used to calculate it. Then find the bill for the same period last year and note its readings. Subtract last year’s from the latest to get the annual consumption. For electricity, do this for peak and offpeak, then add them together to get the total for electricity. Do the same for gas.

  • Are the numbers you get anything like what it says on your Plan page?  

The change from Economy 7 to Economy 10 will have a major influence on your costs unless you’re very careful to use your power-hungriest appliances (e.g. space and water heaters) only during offpeak hours. Your meter should have been configured to switch on power to the heating equipment at the start of each offpeak period and off again at the end.

  • Have you seen that this is what is happening? 

 

… they keep having to estimate my usage as my meter keeps stopping sending readings, and they are estimating double the usage on average from the last several months.
 

That’s a nuisance, but any estimates will come out in the wash when actual readings are received. To be sure that you’re billed correctly, submit meter readings in the morning of the first day of each  billing period. If your bills cover a calendar month, you’d send in readings on the first. If it runs from, say, 16th to 15th, send them in on the 16th, and also on the first day of each quarter when the tariff changes (next will be 1 January 2025). This won’t affect anything if smart readings are also received for the same day, but it will avoid silly estimates if they’re not.

Please reply with answers to the questions I’ve posed, and tell us too where you are in the world so we can see what rates and offpeak times you should be getting. The first part of your postcode is enough to nail your region down. It would also help to know what equipment you’re running at offpeak times. As always, a couple of clear photos of your meter (touch a button to light up the screen) and of the meter backboard/box/cupboard so we can see all the cables to and from the meter would be useful.

 

 

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |