Tutorial

Direct Debits - What do I need to know?

Direct Debits - What do I need to know?
Userlevel 7

Updated on 06/10/23 by Emmanuelle_OVO

How Direct Debits work

 

A Direct Debit is an automatic monthly payment set up with your bank or building society. It means you can choose which day you want the payment to go out each month, and your bank will sort the rest.

Once a Direct Debit is set up, you don’t need to do anything else.

It’s often the best way to make regular payments, such as your energy bill.

 

Why paying by Direct Debit is the best way to pay

Direct Debit is usually the best way to pay bills because:

  • you get a cheaper rate if you’re on our variable Simpler Energy plan
  • you don’t have to think about it – it’s all done automatically each month
  • you don’t need to worry about forgetting or missing a payment
  • it can help you budget as you know how much is going out of your account each month and when
  • it spreads your year’s energy costs evenly over 12 months

 

How we work out your payment amount

To work out your monthly Direct Debit amount, we:

  • look at your energy use to date and how much you’re likely to use until 31 March, or the end of your contract if you’re on a fixed plan
  • take into account your current balance and any other costs such as the standing charge and any add-ons you have
  • divide the amount by the number of payments left until 31 March, or the end of your contract, and that gives us your monthly amount

Our aim is to make sure you don’t build up unexpected debt by the end of winter, or the end of your contract if you're on a fixed plan.

 

Why your Direct Debit amount might be different to your bill amount

How much energy you use can change from month to month, so your actual bill might be a different amount to your Direct Debit amount.

But we make sure you’re paying the right amount each month to cover your whole year’s energy use, spread out over 12 monthly payments.

 

Why meter readings are important

You can make sure your Direct Debit amount stays at the right level by giving us regular meter readings – once a month is best.

 

How we work out your Direct Debit amount when you join us

If you’re new to OVO, we work out your Direct Debit amount to cover your expected energy use over the next 12 months. We base it on your past year’s energy use if you know it.

If we don’t know it, we’ll ask you about your property and how many people live there, then we’ll base it on the average data for your type of household.

After 2 months we check in to make sure the amount you’re paying is right for your actual energy use. Your Direct Debit amount might then need to go up or down.

 

How often we check you’re paying the right amount

We review your Direct Debit every 3 months to make sure you are not paying too much or too little for the energy you’re using.

We let you know if your Direct Debit amount needs to change to keep you on track.

 

When your payment amount might change

Your payments might need to go up or down if something changes, such as:

  • your energy use goes up or down
  • the price of energy goes up or down – if you’re on a standard variable tariff
  • you change which energy plan you’re on
  • you missed a payment or recently requested a refund
  • you’ve chosen an add-on, such as Greener Energy or OVO Foundation

If your Direct Debit is too high or too low, then we’ll let you know we’re going to have to change the amount.

 

If your balance is in credit

It’s good for your balance to be in a bit of credit as it acts like a pot of money to cover when your energy use is higher.

For example, you’re likely to build up credit in the summer months when energy use is lower, but you might need to tap into your credit in the colder and darker winter months when energy use can be much higher.

We check you’re paying the right monthly amount so your balance stays on track for the whole year.

Even if your balance is in credit, it might be that we still need to increase your monthly payments. This would be if we’ve worked out what your energy use is likely to be and that your balance is likely to go below zero by the 31 March or end of your plan.

 

If your balance goes below zero

If your balance goes below zero, we’ll let you know if your monthly Direct Debit amount needs to go up.

 

If you’re struggling to pay your bills, we can work it out together – sign up to our payment support tool.

 

Setting up or changing a Direct Debit

You can set up, change the amount or date of your Direct Debit by logging into your online account and following these steps:

  • Go to Home
  • Select Set up your Direct Debit
  • Choose which day you’d like us to collect your payment each month. This can be any date from the 1st to the 28th
  • Enter your Direct Debit amount. You can use our Direct Debit calculator to get an accurate prediction of what you should pay each month
  • Put in your details, including your full name, sort code and bank account number
  • Select Next
  • Check the details you’ve entered are correct
  • Select Confirm payments

We’ll send you an email within 3 working days to let you know it’s all set up.

Find out how to set up or change a Direct Debit in the app.

 

Check out our Direct Debit “check in” process here or watch the video below for more info on direct debit reviews for fixed plans -

 

 

You can change the date your Direct Debit comes out on by contacting the Support Team. It may take up to 6 days for your payment info to be updated, which means the change might take effect from the following month. You’ll see the next payment date on the app or online account and also receive confirmation of this via email so you know for certain the date of your next Direct Debit payment.

 

You can check your current Direct Debit amount and adjust this if needed on the ‘Payments’ page of your online account or OVO app (download for Android or iOS). I

 

Exact appearance may vary

 

There’s also some really helpful advice here in understanding the calculation we carry out when checking your Direct Debit amount -

 

Exact appearance may vary 

 

Is there any support available if I’m struggling to pay for my energy?

 

There is help available if you’re struggling to pay your energy bills – both from us here at OVO Energy and from government schemes and charities as well.  There are many ways we can help – such as setting up a payment plan for you, which spreads the cost of your energy to make it more manageable. If you want to find out about payment plans, you can request one online here – we’ll take you through what you need to do, and ask you for some details. Our dedicated team is also specially trained to support you. They can make sure you’re receiving any financial assistance from the government that you’re eligible for, and take you through payment support schemes that are available. 

 

You can find out more about these schemes and where to seek free, independent advice right here.

 

How easy do you find your Direct Debit calculations?

 

Got it sussed or still got questions? - Comment below, we’d love to hear how we can improve our Direct Debit process! :slight_smile:


111 replies

Userlevel 5
My direct debit has just changed for the third time in less than 12 months, which is a little frustrating when trying to budget, but I do understand the reason why and always alter the amount when suggested I do so in order to have a £0 balance or be in credit at the end of my contract.
Userlevel 5
My direct debit has just changed for the third time in less than 12 months, which is a little frustrating when trying to budget, but I do understand the reason why and always alter the amount when suggested I do so in order to have a £0 balance or be in credit at the end of my contract.

Good advice there, Emma_G! I appreciate how that can be frustrating (I feel the same when it happens to me!) but as the Direct Debit is based on consumption, there is a possibility that the Direct Debit will fluctuate.

Lucy
Can I check with you: If I switch to "Ovo Energy - Greener Energy Fixed (All Online)" does the fixed refer to the unit cost rather than the Direct debit amount? I am hoping that it is the unit cost and that you still evaluate usage and adjust the monthly amount accordingly.
Userlevel 2
Can I check with you: If I switch to "Ovo Energy - Greener Energy Fixed (All Online)" does the fixed refer to the unit cost rather than the Direct debit amount? I am hoping that it is the unit cost and that you still evaluate usage and adjust the monthly amount accordingly.

Yes, this refers to fixed unit price. The DD amount will be variable, depending on your usage.
I have recently joined OVO, and I am supposed to make my first payment on the 25th of april. however, I want my direct debit to be on the 1st of every month.
how can I change this?
thanks in advance.
This page will help I'm sure... It explains how to change it.
https://www.ovoenergy.com/ovo-answers/topics/payments-and-statements/payments/how-do-i-change-direct-debit-details.html
Userlevel 5
I have recently joined OVO, and I am supposed to make my first payment on the 25th of april. however, I want my direct debit to be on the 1st of every month.
how can I change this?
thanks in advance.


This page will help I'm sure... It explains how to change it.
https://www.ovoenergy.com/ovo-answers/topics/payments-and-statements/payments/how-do-i-change-direct-debit-details.html


Thanks, Padwick!

For your convenience, Dianna_OVO, I’ve merged your topic onto this existing topic that we have on Direct Debit queries. 🙂

Lucy
I recently changed OVO tariffs and the price I was originally quoted has already risen...from £69.00 per month to £98.00... this is quite a jump! My energy use hasn't increased significantly either so I'm a little confused and dismayed...please advise.
Userlevel 5
I recently changed OVO tariffs and the price I was originally quoted has already risen...from £69.00 per month to £98.00... this is quite a jump! My energy use hasn't increased significantly either so I'm a little confused and dismayed...please advise.

Your Direct Debit will be heavily based on your consumption as this is a reflection of how much you’ll be spending. Your unit prices and standing charges will be factored into this too though as it will affect how much you’re paying per kWh and per day.

I’d suggest providing us with regular meter readings (to ensure your bills are an accurate reflection of your usage) as it might have been that we’ve been over estimating your usage which is why your Direct Debit has increased. If you’re then able to decrease your Direct Debit off the back of this, you’ll be able to do so on your My OVO account.

Don't forget that the Direct Debit will also take into account your projected spend for the year!

I’ve also moved your topic onto this thread as there’s already a bit of conversation around Direct Debits on here.

Lucy
Is your OVO direct debit payment set at a fair and sensible level? I don't think mine is. After paying £70 per month for exactly one year (for dual fuel) I've ended up slightly in credit - which means the monthly payment was about right. Despite this, OVO has now pushed up my direct debit payments to a whopping £96 per month, citing "price rises" as the reason. This is a 37 percent increase, which suggests that OVO plans to hike prices by this amount in the coming year. Surely we'll all shift suppliers if that happens? Shame. OVO feels like a good company. I know I can force down the level of monthly payments, but having raised the issue with the company I'm told they stand by their estimate: £96 a month to cover a total fuel bill of around £840 in the past year. Does anyone have similar experiences?
Hi there, just joined Ovo in my own brand new house after leaving the parental home. When i set up the account, I chose 2 bed semi and Ovo quoted me £82 a month via DD. It seems a lot to me, and now going through the new account wizard and refining my details (2 bed semi, 1 adult) it says I should pay around £40 a month.

Can I change my DD before my account starts in a few days time? Just the £42 a month extra is a lot to pay out when I know that I won't use as much as originally quoted.

Any help is much appreciated :)

Steven
Hi there. I'm not sure if its a good idea to fix the prices - though I'm sure its likely to go up! I'm concerned as the suggested monthly DD is higher than I pay now - I understand why - but my usage is below by current DD anyway. Any thoughts?
Userlevel 7
Hi there. I'm not sure if its a good idea to fix the prices - though I'm sure its likely to go up! I'm concerned as the suggested monthly DD is higher than I pay now - I understand why - but my usage is below by current DD anyway. Any thoughts?

Hi Tracy71

Thanks for posting your question on our new forum. Great to have you on board.

I have moved your question onto this one as there is already a lot of helpful information here on direct debits and contracts etc.

I hope its useful, if you need anything further, please comment below.

Darran
Like Nicholas I also queried a whopping 33% increase when I owe £69 which will soon be cancelled out by the warmer months. All energy companies hike their prices in spring, it's a shame as Ovo were going to be the first energy company I placed business with for a second year. Even given the £60 exit fee (shameless tactic brought in since the govt forced companies to put people automatically onto the lowest tariff) I will still be quids in by changing supplier and the gentleman I spoke to in the call centre obviously couldn't explain the extortionate hike logically as I submit regular readings and haven't changed my usage.
At least he had the honesty to admit Ovo were no longer the cheapest - off to the comparison sites I go!
Userlevel 6
Like Nicholas I also queried a whopping 33% increase when I owe £69 which will soon be cancelled out by the warmer months. All energy companies hike their prices in spring, it's a shame as Ovo were going to be the first energy company I placed business with for a second year. Even given the £60 exit fee (shameless tactic brought in since the govt forced companies to put people automatically onto the lowest tariff) I will still be quids in by changing supplier and the gentleman I spoke to in the call centre obviously couldn't explain the extortionate hike logically as I submit regular readings and haven't changed my usage.
At least he had the honesty to admit Ovo were no longer the cheapest - off to the comparison sites I go!


Whilst it is a shame you are thinking of leaving the OVO family, OVO do encourage customers to check they are on the best tarrif for them and if it means switching to another provider so be it. It's great that OVO actually tell you when it would be cheaper elsewhere!

Hope you come back to the OVO family at some point - good luck with the switch, hope you get a decent deal
Userlevel 3
Energy prices are always up and down, it's a highly volatile market.

Since June last year the Wholesale cost of Gas is up around 30% and Electricity is up way over 30%... This means that if you take out a new contract/tariff right now, or renew onto a new one, you kinda hafta suck up the higher rates... I checked my own increase this year after I renewed and although I too have had to increase my direct debit, the rise in rates with OVO is Exactly in line with the rise in the Wholesale costs, and I can't really bring myself to complain about that, not to OVO at least...

Some energy companies play games with prices, offering cheap deals for new customers by over-charging the loyal ones. OVO don't do that, they set prices at the lowest level they can manage based on current wholesale prices and "cost to deliver", and give those rates to Everyone, and I really respect that. I'm not subsidising a marketing drive, and no-one's getting a better deal than me cos they arrived more recently or pretended they were switching suppliers.

It's about integrity, and I say it's worth a few extra quid a month.

And just watch, when energy prices drop, as they inevitably will, I cast-iron guarantee you that OVO will be among the very first to drop their rates...
Userlevel 6
You've hit the nail on the head @stateofit 🙂


Can't beat OVOs openness and transparency
I've been using Ovo for 3 years and found them very good. Up until December last year everything was fine. I used to change the Direct Debits so I paid less in the summer and more in the winter. In December Ovo started changing the Direct Debits without consulting me and getting it totally wrong - in fact taking too little and later too much. Eventually after complaining they fixed it.

Now they have the settings wrong. They suggest too large a figure and I am unable to reduce the amount as we approach summer and the amount should reduce. They just want take more. And trying to claim back what they hold does not work either.

I am very happy with Ovo, but this continuous screw up, going on for months does not help. Just put is back the way it was before Nov last year and stop messing around with something that was working.
Userlevel 7
I've been using Ovo for 3 years and found them very good. Up until December last year everything was fine. I used to change the Direct Debits so I paid less in the summer and more in the winter. In December Ovo started changing the Direct Debits without consulting me and getting it totally wrong - in fact taking too little and later too much. Eventually after complaining they fixed it.

Now they have the settings wrong. They suggest too large a figure and I am unable to reduce the amount as we approach summer and the amount should reduce. They just want take more. And trying to claim back what they hold does not work either.

I am very happy with Ovo, but this continuous screw up, going on for months does not help. Just put is back the way it was before Nov last year and stop messing around with something that was working.


Hi Robin,

It’s a shame to hear that you’re not happy with our suggested Direct Debit changes. Here’s an OVO Answers page which explains how we work out the ideal amount: https://www.ovoenergy.com/ovo-answers/topics/payments-and-statements/payments/how-do-you-work-out-my-direct-debit-amount.html.

In short, we want you to end your contract with a £0 balance, and we want you to keep the same Direct Debit amount throughout the year. This also happens to be what most of our customers want.

@Emma_G - you're one of our fav Pay monthly forum users - any suggestions for @robinj:?:?

Tim
Userlevel 5
Hi @robinj

I understand how frustrating it is when direct debits change, but am sorry to hear you have had so many problems.
The amount I pay has changed a few times since I became an OVO customer a little over a year ago, but I have always made the change in the hope of having a zero balance (or being in credit) at the end of the period.
Have you queried why the amount you pay cannot be reduced to be an amount you are more comfortable with?
The only other thing I could add that may help explain why the amount has increased and cannot be altered would be to do with an increase in energy costs - none of us like it, but it happens. I am not always aware that the cost of gas and electricity has increased, but then find out that is the case when the direct debit increases.

I hope your issue is resolved, and will keep following this thread to try to help wherever I can

Emma
Another month has now gone by and you contiinue to get it wrong. The replies above say "its because the prices have gone up". Ok so the prices have gone up, but I am saying you are calculating the payments incorrectly and as each month goes by you continue to get it increasingly wrong. This is obvious to me but you continue to profit from your incorrect calculations.

You get a lot right with your service but continually taking money which is not owed (ie cheating your customers) and when I complain just saying its right and its because the prices have gone up. You need to do the calculation based on the fact that in the summer people use less gas and then you will stop making these mistakes.

Put it back how it was before Nov 2016 when I could make adjustments to the standing order which make sense or allow me to get a refund.
Userlevel 6
@Emma_OVO can you pick this up please?
Userlevel 5
@Emma_OVO can you pick this up please?

I’ll pick this one up @Mattj3135 :)

Sorry to hear this is still ongoing @robinj. I’ve sent you a PM so that I can help further.

Lucy
Userlevel 6
You're a good egg @Lucy_OVO

Thank you
@Lucy_OVO Still waiting for the PM that has not been sent

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