Will my tariff increase if I cancel my direct debit?

I don’t need to ask because I know that I am paying more because OVO’s published Simpler tariff quite explicitly states that you pay more if you pay on demand, rather than by direct debit. That’s why I think you are misunderstanding something. 

These are the rates I’ve just been quoted for when my fixed deal finishes in Feb. Direct Debit cheaper than On Demand. 

Just to add to Julia’s response, I cobbled this together for a user in Scotland.
  

The rates will only apply to you if you’re in the Northern Scotland region, but you can see the difference between the GB average rates. This shows the Energy Price Guarantee maximum rates allowed, so your actual rates could be a bit less. Even so, the average On Demand rate is 11% higher than that for Direct Debit. 

The standing charge will be different, too, but infuriatingly I’ve not been able to find a page which tells me unequivocally whether the EPG rates include VAT or not.

Original : I am currently paying by DD and have built up a credit of in excess of £500. I’m on the standard variable price cap rate for gas and electricity. I appreciate that this is going to increase and also that it’s summer so I will be using far less energy than in winter and the idea of DD is to pay a fixed amount over 12 months to cover the usage. I however resent OVO holding on to my money and I would rather it be sitting in my own bank account. If I cancel my DD and pay by bank transfer/card each month on receipt of bill for exact monthly usage will I end up paying any more? What I mean is, OVO obviously prefer DD so are there any additional charges/increase in tariff if I don’t pay by DD? 

I contacted OVO as I was so much in credit, for almost a year I was able to have a DD of £14. They then wanted approx £100 per month. I explained that rather than OVO have the interest on my payments I would keep it thank you. I agreed to £30 per month DD and I would always make top up payments to  ensure I had a £100 in credit. They  were not best pleased but when I explained it was either that or no DD at all guess what they accepted. I have to remind them every 3 months when they again want £100 plus, not sure why as my dearest bill this winter has been £60. Long story short I decide what my DD is.

Sadly, yes. Quite a bit more. You can get an idea of the surcharge for paying on demand as opposed to by DD by comparing the rates in Ofgem’s tables: Get energy price cap standing charges and unit rates by region | Ofgem

What do you see if you use the DD calculator? Can you not reduce your DD there to an acceptable figure?

Hey @Sally123,

Welcome to the OVO Online Community,

If you’re on the variable plan you can request a refund at any time. This topic may be helpful to you:

These topics should breakdown in detail how direct debits are calculated:

Do you have a smart meter or send in regular meter readings?

If you’re unhappy with the suggested increases, and raise a complaint the support team can put you on a direct debit review exceptions list for 3 months.

The calculator told me I needed to pay £130 per month, rubbish. I pay £30 DD per month plus £15 power move and every 5 or 6  months I top it up meaning I am now never more than approx £100 in credit. Works for me

What is your alleged Future Annual Consumption (FAC), which you can see on your Plan page? How does it compare with your actual consumption for the past year? You can get an idea of this from your Usage pages. If the figure they’re working from is unrealistically high, this would explain why the calculator is over-estimating how much you need to pay.  

For comparison, my own FAC is currently 2053 kWh, while my actual consumption for the whole of 2023 was 1183 kWh according to both my usage pages and my meter readings. The DD calculator produces rubbish for me, too.

I would love to be able to use the DD calculator in my account, but as I have not had access to my account for 12 months now, I can’t.

I suspect I am around £1500 in credit, but no longer get monthly interest. 

I can’t modify my DD as I don’t have enough information and don’t have the access to my account anyway.

I, along with the others in the same situation, have had absolutely zero communication from OVO about this.

When I submit my monthly readings by email - as I have no access to my account - I take the opportunity to also add some questions. I never get a full reply to my questions, so it is virtually impossible to administer my account.

Are you not getting a monthly bill? That should tell you your balance, at least on the date the bill refers to.

It’s not difficult to work out what your Direct Debit should be, especially if you have a comfortable credit balance. Use your bills to work out your consumption in kWh over the latest year, then calculate its cost at current prices, again taken from your latest bill. Add on a year’s-worth of standing charges and add 5% VAT to the total to get your estimated annual cost. Subtract this from your current balance to work out how much you have to pay over the next year and divide the result by 12. If it’s negative, you’re obliged to pay £5 a month to keep the DD alive. 

If this is very different from what you’re currently paying, Support should be able to help. They can also help you arrange for a refund of your credit if you prefer to do it that way (more money in the bank now to cover possibly higher future monthly outgoings).

The interest reward has never affected the DD calculation, so losing it won’t have made any difference.