ENERGY SUPPLIER has reduced my monthly debits

25Avalon

You could pay the difference into a bank account earning decent interest, unless you are with Ovo who pay 5% interest on account balances, and save the money for increased winter bills. You are also entitled to be reimbursed the £400 as a lump sum instead of being paid back by decreased monthly payments.

Ovo have offered me a small reduction, based on my overall yearly payment, but I have decided to continue with the higher payments especially with the interest,to build up a balance for winter, which will see much higher bills.

Does Ovo still offer this? I searched for it, but couldn't find any details.

It’s a tempting thought Avalon but I personally was delighted to see my DD drop by £100 a month.
To digress, we used to have a friend who paid his mortgage off in record time, back in the 80’s/90’s when the rate fluctuated almost daily. He could afford to, but what he did was to pay the increased rate when it went up, but maintain his payments at that rate when it went down so that he was overpaying.
I believe he paid it off in less than half the usual 25 years.
Not possible for all though.

Growstuff another poster further back said Ovo stopped doing it for accounts taken out after 2021. So I am fortunate in that respect and also fortunate that I can afford to pay extra each month, although the amount I have accrued usually disappears by February and last year I went into a small debit amount. It was affordable, just, however especially as we have solar panels. I feel for people on low incomes in expensive to heat housing.

What I would like to see is a serious drop in standing charges. Martin Lewis calculated average standing charge payments had gone up from £300 to £304 pa. Mine certainly more than doubled per day. So you can sit and freeze because you can’t afford heating but you still have to pay. People who “choose” to cut back their consumption because they can’t afford the cost should have the standing charge seriously reduced.

25Avalon

Growstuff another poster further back said Ovo stopped doing it for accounts taken out after 2021. So I am fortunate in that respect and also fortunate that I can afford to pay extra each month, although the amount I have accrued usually disappears by February and last year I went into a small debit amount. It was affordable, just, however especially as we have solar panels. I feel for people on low incomes in expensive to heat housing.

Thanks for the explanation. I used to be an SSE customer, who was transferred to OVO, when SSE was sold.

My recommended dd has ricocheted all over the place. OVO tries to get customers to keep a balance of three times their dd amount at all times and increases the amount automatically, unless customers complain.

My credit has never been below £200, but I've never received a penny in interest .

Growstuff my balance with Ovo is not 3 times my dd. I couldn’t afford that and neither could they when they pay 5%. A very different deal for you as a transferred customer. So people like me think Ovo is great but others think otherwise. I can see why.

Just thinking Growstuff that’s how they pay me 5% by taking extra from you to earn enough interest on their holdings to so do. Clever!

growstuff OVO tries to get customers to keep a balance of three times their dd amount at all times and increases the amount automatically, unless customers complain.

I switched to them in May and that is not what is happening.

I went through the three month inital period where my direct debit (DD) was set at the sum I agree with them.

I want to be paying a sum as close to pay on demand as possible without being charged extra for pay on demand.

After the unit price came down in July, by next bill was £65 and I had built up a small credit. My consumption is fairly even. My next bill was £64.

OVO invited me to reduce my DD to below that, thereby getting back some of the credit, but I have reset it at £65. I’ll soon use the credit once the heating goes on

This is how credit refunds work:

www.ovoenergy.com/help/article/refunds

If you’re an OVO member and have a positive balance in your account.

You can ask for a refund if your positive balance is at least £25 higher than one month’s Direct Debit.

For example, let’s say your monthly Direct Debit is £50, but you have a positive balance of £80. Because you have £30 excess, we could give you a refund of £30.

But if your positive balance is £60, we can’t give you a refund. That’s because you’re only £10 over your Direct Debit amount.

Caravansera

25Avalon

I have no problems with Ovo (touch wood) and they pay 5% interest on my balance so I don’t mind paying more each month. It’s better than the bank.

Only for customers who signed up for an eligible tariff before 27 September 2021. Ofgem put a stop to it.

Just repeating my post from a couple of pages back about who is still eligible for OVO Rewards.

Caravansera I can assure you that OVO does recommend that you have three times your dd as credit and is reluctant to issue a refund which brings customers below that figure. The direct debit page isn't working at the moment or I'd post the link.

Alternatively don’t pay by dd, pay as you go. The dd incentive isn’t worth the hassle.

Just copied from my OVO account

Germanshepherdsmum

Alternatively don’t pay by dd, pay as you go. The dd incentive isn’t worth the hassle.

I don't find it a hassle. To be honest, it's easier than having to remember to pay.

The loss of interest isn't really worth bothering about either.

I diarise the meter readings and pay the bill as soon as it comes through by email. Absolutely nothing to have to remember. Much easier than keeping track of credits and dds,

growstuff

Just copied from my OVO account

But that's just OVO nannying people on the assumption that customers want to spread the cost. They can't force you to leave a credit balance with them in excess of what is explained in the link I gave upthread.

When I was setting up my account in May the advisor suggested a DD of £270. My energy costs for April 2022 to March 2023 were £831 after £400 GEBSS, £331 after £500 WFA. Why would I agree to pay £270 a month?

They are just suggesting numbers based on what someone has deemed an average household uses. But I am not an average household. I'm a single occupant who is very energy conscious and who, despite rattling around in a big house, doesn't feel the cold that much. With no GEBSS this year, I'm estimating my costs will be £650-£750 this year. I've set my DD at £65.

Germanshepherdsmum

I diarise the meter readings and pay the bill as soon as it comes through by email. Absolutely nothing to have to remember. Much easier than keeping track of credits and dds,

Our minds obviously work differently. My direct debits are the same every month, so I know how much will disappear from my account and don't have to think about it. I have a smart meter, so don't even have to bother about submitting readings. I have a spreadsheet for annual outgoings and birthdays, etc. I divide the latter amount (plus some for contingencies) by 12 and transfer that amount into a different account.

No Caravansera, I agree they can't force anybody to keep their accounts that much in credit. However, customers have to contact customer service if they want a bigger refund than "allowed" by the online system, which is automatic.

I don't really mind because I do want to spread my costs over the year. I have a low income and my finances aren't robust enough to cope with big shocks. Quite honestly, the interest on £200 isn't really worth bothering about. I know I'll get through winter without having to worry about heating.

PS. My DD is now set at £90 a month. I've been an OVO customer for over a year and they reckon my credit will be nil at the next review.

25Avalon, unfortunately, I believe standing charges will increase again, not that there's any valid reason for it. I used to have a gas account with no SC at all (but slightly higher cost per KwH) and that suited me as a low user.

My total bill last year was £1617 before GEBBS and WFA. This year, I'll keep my WFA in a separate account until my credit runs down and then transfer it to OVO as it's needed.

Assuming the bills are about the same as last year, 12 x £90 (£1080) + £200 credit + £300 WFA will nearly cover the costs and I'll need to adjust my dd up slightly (or be even more careful about how much fuel I use).

Hetty58

25Avalon, unfortunately, I believe standing charges will increase again, not that there's any valid reason for it. I used to have a gas account with no SC at all (but slightly higher cost per KwH) and that suited me as a low user.

It's annoying, isn't it? I'm a low user and my standing charge makes up a big chunk of my bill.

I could have written your post from 22.24, growstuff, and that is exactly how I work, spreadsheet and all. I much prefer to have a consistent amount to pay each month, so the monthly direct debit suits me just fine. It’s totally hassle free.

There’s no right or wrong way to pay what we owe. The important thing is that we can each choose to do it in a way that suits us.

Exactly, growstuff, what Martin Lewis calls a big cash flow hit.

I do the annual Money Savings Expert 1p Savings Challenge. Have you heard of it?

It started as I don't carry a purse and put loose change in my pockets. Then I'd throw the pennies and tuppences into a pasta jar. They were mounting up.

The challenge is that you save 1p on day 1, 2p on day 2, 3p on day 3 and so on. I used the coppers to "seed" the first few weeks.

Nowadays I rarely use cash so I just work out what I need to put aside for the week or month and move it to a separate savings account. This week it's £17.85 - £2.52 to £2.58 per day - less than a cup of coffee in town.

It’s just a bit of fun but keep going with it and it adds up to £668 for the whole year - £326 to date.

It should cover most if not all of my estimated net energy bill this year after winter fuel allowance.

I expect a lot of people couldn't be bothered but I have always been a saver. Look after the pennies was always instilled in me as a child. I think this appeals to the child in me, like putting pennies in a china pig.