How billing works
We charge you for the energy you use, and for fixed charges too, throughout each billing period. Here’s how it works:
- Your energy account balance updates each day
- We take your set payment once a month
- We send your bill monthly (or quarterly in a few cases)
What’s a billing period?
This period starts on the day your plan starts and on the same date for each following month (billing periods can also run by calendar month, or quarterly, too). A few days after the end of the current billing period we’ll generate your bill. It’ll show your opening balance, new charges and payments during this billing period, and your new closing balance.
Here’s an example:
- Your billing period ends on the 19th of each month
- You log in to your account on the 31st July
On the ‘Billing’ screen you’ll see Billing for 20th - 30th July 2020, showing a breakdown of your costs so far for this billing period
What affects your balance?
The amount of energy you use changes. You use more in winter when it’s cold and dark. And less in summer, when you don’t need your heating or lights as much.
Think of your energy account balance like a pot of money – set payments go in, different amounts come out. Each month we send you a bill for the energy you’ve used, and take the amount you owe from this pot of money. Some months we might take less than the set payments you put in, so you might have a positive balance. Some months it might be more and you might have a negative balance. But don’t worry, it’ll all even out.
We’re aiming for you to have a zero balance at the end of 12 months. So you won’t have to pay us a lump sum of money.
We calculate what to take out by adding up:
- Your standing charges – a daily fixed charge for supplying your energy. It includes the cost of the pipes and power lines, and the maintenance of meters
- The cost of the energy you’ve used, plus VAT
- The cost of any upgrades – like Ovo Beyond
- Any extra charges – these might include things like late fees charged to members who failed to cancel a smart meter appointment in time
From this total we’ll take off any rewards you might have – such as the Interest Reward or the Self Service Reward (not available to new members).
Payments going in:
- Direct Debit payments made from your bank account
- Top-up payments
If we’ve paid any refunds back into your bank account, you’ll see these displayed on your bill and on the 'Billing' screen too.
When might you see missing or estimated energy costs on your billing breakdown?
We add costs for your energy use when you send us a meter reading. If you haven’t sent a reading lately you might not see these – or we might use estimated readings to cover your energy costs.