Why is my online account credit balance dropping every day?

Yes, everything is in order, smart meter, daily readings etc but, routinely, every month, a.day or two before the direct debit is due, the balance falls sharply down. Just wonder if anyone else finds the same?

Not me. Can you show us what is happening?

The daily balance is calculated from consumption since the start of the billing period as reported by the meter, so the only way that the balance can fall by an unexpected amount is if consumption increases by an equally unusual amount (another possibility is that the cost of gas used has been recalculated in response to a revised calorific value, but this isn’t likely to be at all regular.) 

If you shared screenshots of your readings page(s) covering the last time this happened, we may be able to spot something. 

Why does my credit balance decrease after the billing period has ended?

Hi @LWHAMPTON ,

That’ll be because OVO’s system runs on something called Live Billing. Rather than having to wait for a bill to arrive to see what you spent, you can see it in near real-time as the account balance updates every day to reflect what you’ve spent so far in the current cycle.

The monthly bills you get sent however, do not change and will show the final cost for any particular cycle.

OK I hear what you say however it does not make sense.

It’s just a bit of a different way of showing you your balance daily rather than only telling you monthly/3-monthly like most other energy providers currently do.

So it is a bit different to what you may be used to with other energy suppliers, but it’s actually a better way of doing it; once you understand it.

I expect that most, if not all, energy providers will start to do it eventually.

Think of it as working more like your bank statement and bank balance do.

• There is a Statement at the end of your last billing period, which shows the Closing balance for that period, which is also your Opening balance for the next period.
• Then there is a 'live' balance that changes daily to reflect what energy* and standing charge* you have used each day (what you have spent). That usage will decrease your ‘live’ balance.
• It also changes to reflect any payments that you have put in (say a Direct Debit if that’s how you pay).. That payment will increase your ‘live’ balance.
• Then at the end of your billing period you get a new statement for the month just gone showing your new Closing balance, Which is also the Opening balance to start the next period.

Just like with your bank, - you get a statement once a month, but if you want to then you can also see your (live) balance of what is going out/in daily.

In both cases, your bank and OVO, that 'live balance' is just extra information so that you can see how your account stands day-by-day rather than having to wait until the end of each month for a statement..

*PS. If you don’t have a Smart Meter, or aren’t sending daily usage readings, then the ‘live’ balance will still change by the daily standing charge.

Hi @LWHAMPTON,

It seems that our forum volunteers have already given some great advice here which should answer your question. 

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