Why does my first bill look like that?

[Wanda25]

Hi,

I'd like to get some info about the billing system.

I've changed my O2 service form 'pay as you go' to 'pay monthly' on 17/01/2023, so from that day I am supposed to pay 10+5 GBP per month.

MyO2 app says I have my first bill, period was 17/01-19/01, the amount is 8.34 + 4.17 GBP, payment due on 02/02/2023.

Questions:

How does billing work? Does the bill include previous month (excluding extra charges)? If so, why should I pay for two days on 19th January? Why won't my first bill be made on 17th February?

Will I pay my bills by direct debit? O2 asked my bank details when I signed the contract, so I assume I don't have to use 'make a payment' option in the app.

Sorry for being uninformed, but O2 assistant didn't explain in the store how billing works exactly...

Many thanks.

[MI5 · Accepted solution]

@Wanda25 

Your first bill includes 2 days to take you up to your regular bill date.

You pay a month in advance and the price you quote is ex vat.

After the first month the regular payments will settle down to the quoted cost assuming there are no extras.

https://www.o2.co.uk/help/account-and-billing/your-bill

Also O2 will set up a direct debit with your bank, so ne need to make manual payments.

[jonsie]

Lots of info here

https://www.o2.co.uk/help/account-and-billing/understanding-your-bill

You pay the first couple of days extra on top of your first bill which is why it's a little higher than your agreed tariff

This is because your billing date wasn't set up until the 19th

Payment will be taken 14 days after your bill is produced by direct debit

This is one month in advance as per O2's terms and conditions