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Updated on 04/11/24 by Emmanuelle_OVO:

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 For a visual guide to this Direct Debit calculation for a fixed rate plan check out the video below.

 

 

How do 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 energy costs evenly

 

How we work out your Direct Debit amount

 

To work out your monthly Direct Debit amount, we:

  • look at your energy use so far and estimate how much you’re likely to use by 31 March 2026. This includes any costs, such as standing charges and add-ons
  • take away your current balance, factoring in any credit or debt
  • divide the result by the number of payments left until 31 March 2026, which gives us your monthly amount

We aim to bring your balance to £0 by 31 March 2026. This way, you won't owe us anything, and we won't owe you anything, making it easier to manage your energy costs.

We regularly check your Direct Debit to make sure your balance is on track.

 

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

 

Your energy use can vary from month to month, which means your actual bill may differ from your Direct Debit amount. 

To make sure you're paying the right amount, we spread your costs evenly, covering your total energy use until 31 March 2026.

 

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

 

When you apply to switch to us, we’ll use your annual usage figures,  If you’re new to OVO, we work out your Direct Debit amount to cover your expected energy use until 31 March 2026. 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 1 month 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 regularly to make sure you are paying the right amount for your energy use. 

We let you know if your Direct Debit amount needs to change to keep your balance on track to reach £0 by 31 March 2026.

 

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 normal for your balance to build up in summer when energy use is lower. This helps put extra money aside for higher winter bills, when most people use more energy to heat their homes.

We check you’re paying the right monthly amount so your balance stays on track to reach £0 by 31 March 2026.

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 £0 by 31 March 2026.

 

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.

 

 

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.

 

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

 

What’s a Direct Debit Review?

 

As the amount or price of energy you use may change, we’ll regularly check that the payment amount is enough to cover your energy costs. There’s a breakdown of how we work this out on your Direct Debit calculator which can be found on the ‘Payments’ page of your online account or OVO app (download for Android or iOS).

 

Need more help?

 

We’ve got more details on understanding this Direct Debit calculator on the guide below,

 

 

 

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

 

There’s 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.

There seems to be something very wrong with OVO's algorithm that it doesn't take account of the contract term end and constantly sets the DD relevant to 12 month from the day you access the account page. This means that I'm overpaying based on a constantly ongoing 12 month period and not calculated on the 6 months left of my contract.

Going into my account today I see that i'm £220 in credit. Yet I'm being flagged up that my account wiil be in debit in 12 months time and need to increase my direct debit!

Why? My usage is down and cost down (even with the recent increase levied) down compared to last year and my contract ends on the 13th May 2023. Not in 12 months time!

Offgen have recently announced that they are contacting suppliers who are abusing the direct debit system. Is this instance a sample of this abuse?


This is very interesting, we have just come over from SSE & regardless of price hikes our usage is quite low but they saying we should be paying £203 pcm!!! I'm sure it's being calculated on our use so far with the company & they won't tweak it at all!!! We were paying £121 with SSE & was in £300+ credit!!! Hope this is sorted for you!!!


This is very interesting, we have just come over from SSE & regardless of price hikes our usage is quite low but they saying we should be paying £203 pcm!!! I'm sure it's being calculated on our use so far with the company & they won't tweak it at all!!! We were paying £121 with SSE & was in £300+ credit!!! Hope this is sorted for you!!!

Rob I think this is how they calculate the direct debits. it’s not an individual check based  recent usage, it’s not even a check on my previous 12 months usage, they seem to be basing it on the upper end of average usage for our house size nationwide., Of course his is also by far the most favourable options for the supplier.

I’ve tried several times now to change the direct debit based on my usage calculations. The algorithm in the account prevents it from going any lower than the amount it/they have decided it should be.


Keep sending meter readings and the system should eventually correct to your actual usage.


Sorry but I don’t share your optimism. I’ve been with OVO for two years and my direct debit always exceeds my use. The system just keeps accruing a credit balance.Have a look through some of the threads on here or on some of the review sites and you will see that this just does not happen. Besides why should we be overcharged every month and have OVO hold on to your money while waiting for their system to correct itself? It might make sense for OVO but how does that work out in anybody’s favour but OVO?  We don’t get interest on them holding on to our money. Money is tight for a lot of people. Being overcharged every month is no help if you are feeling the pinch. The consumer should be able to adjust the direct debit amount to the appropriate amount without any of this nonsense.

Is it really beyond OVO that they can’t figure out a better method? How come that I have a credit rating that if I wanted could run up thousands of pounds in debt and OVO cant be bothered to run a credit check to see that I and others like me can pay their way?

 


Hey @rodman,

 

Sorry for the issues you’re having,

 

If you’re not on a fixed contract, your direct debit will be based on a 12 month period. This takes into account a years worth of your estimated annual consumption. Every time you submit a meter reading your estimated annual consumption will update.

 

 

The more meter readings OVO gets, the more accurate the estimate will be. If you haven’t already got a smart meter, I’d advise booking your free upgrade. That way your billing will always be accurate. 

 

 

Prices increased significantly in October even with the Energy Price Guarantee, for some customers they’ll increase again in January due to the OFGEM price cap. In April 2023 the government is increasing the threshold for the EPG from £2500 a year (for an average household) to £3000. 

 

If you disagree with your direct debit calculation, you can request a refund of the surplus credit in your account, if you pay by direct debit you’ll need to keep one months direct debit in there. Or, you can call our Collections Team who can put your account on a review suspension for three months, this means your direct debit won’t be reviewed or increased for this period. 

 

Hope this helps.


Good morning

I'm new to the group,do any off you know why ovo would take over £230 off my account if my bill was only 75 for the month.we have always been in credit and still are ,so I can see no reason why they would take that amount.

 


Hi @Terry317 It is going to be difficult for any of us here to help as none of us can access your account or see your bills. I am just a customer like you. 

We could ask you a few questions to see if we notice anything obvious, but you might find it easier to contact OVO and ask them given your question. 

https://help.ovoenergy.com/#contact_us_container

1. Have you recently switched to OVO?

2. Do you pay OVO monthly by direct debit?

3. Assuming you do pay by Direct Debit, what is your monthly direct debit set to on this page?

https://account.ovoenergy.com/payments/direct-debit/calculator


I am *Edited by Mod*. I am your new customer morover I have not received  the account number yet.


I am Sunu Thomas from …. I am your new customer morover I have not received  the account number yet.

Hi @Sunu Thomas we don’t have access to your account here and you should not give any personal details being a public forum. 
Have you switched or moved over from SSE?


Hey @Terry317,

 

Sorry for the issues you’re having,

 

Hi @Terry317 It is going to be difficult for any of us here to help as none of us can access your account or see your bills. I am just a customer like you. 

We could ask you a few questions to see if we notice anything obvious, but you might find it easier to contact OVO and ask them given your question. 

https://help.ovoenergy.com/#contact_us_container

1. Have you recently switched to OVO?

2. Do you pay OVO monthly by direct debit?

3. Assuming you do pay by Direct Debit, what is your monthly direct debit set to on this page?

https://account.ovoenergy.com/payments/direct-debit/calculator

 

Where are you seeing this information? If you upload any screenshots to this thread please don’t include any personal information.

 

Hey @Sunu Thomas I’ve removed your personal details from this thread. Please can you provide more information so we can offer some advice here. 


Thank you all for your replys,I will.try and contact ovo.


Why do Ovo want to change my direct debit to £404pm £4,,848pa when the government energy price guarantee should limit this to £2,500pa (£208pm) or from March £3,000pa £250pm???

 


The EPG only sets the maximum charge for a notional average household. This is then translated into maximum rates per kWh, depending on where you live and how you pay. Can you see the rates you’re paying at Plan - OVO Energy? More about the EPG:
New Energy Price Guarantee: Everything You Need To Know | OVO Energy
What is the government's Energy Price Guarantee? | The OVO Forum 

Your Direct Debit is calculated according to your projected usage and your current balance. If OVO think you’re going to be using more than the ‘average household’, your fuel costs for the year to come will be higher than the figures used to set the EPG. 
How does OVO Energy calculate my Direct Debit? | The OVO Forum  

 


Your DD is for an extended period.  in setting the long term rate government discounts will be ignored.  But in taking the DD in a month where a government discount is applied the DD will be adjusted accordingly.  Fear not, you'll see the benefit.


Just opened my OVO App to check my balance and any changes in “end of contract” balance (in quotation marks as like most people on on the EPG variable rates just now) and was surprised to see that whilst there had been no real change in my “end of contract” balance of Minus £183 , my suggested monthly DD payment minimum had dropped from £242 (what we’re paying now) to £184.  Not wishing to look a £58 drop in my monthly DD payments in the mouth I took it.  However I’m not sure why this happened.  Is OVO having a problem with predicting what the Govt are going to do with the EPG from 1st April and this is a system glitch or something else?  I’m sure if it is I’ll be asked to increase my DD again, but in the meantime I’m happy to live in a lower DD fantasy.


Hey @Corgimajor,

 

Welcome to the OVO Online Community, 

 

Every time a meter reading is received your estimated annual consumption will change, so this may have affected the altered direct debit. Credit balance is also taken into account when a direct debit is calculated. These handy tutorials might contain some helpful information:

 

 


Keep an eye on the Future Annual Consumption.

You can see this on this page on the website not the app. 

https://account.ovoenergy.com/plan

This is what OVO estimate will be your consumption over the next 12 months and is used to calculate your DD. OVO systems update this automatically

It may be this fell recently. 

 


Hi @Jeffus , @Emmanuelle_OVO ,  Thanks for your replies and guidance.  I was aware of how OVO manages its customers DD vs. consumption.  If anything OVO are a little too quick on recommending modifications to customers DD when either daily cold snaps or warm snaps affect my energy consumption (I am 100% electric with a heat pump which is very sensitive to changes in ambient air temps).  Looking at my payments screen today OVO are already recommending  I increase my DD from £184 to £193.  Even though my end of year balance has only changed by £9 (from minus £183 to minus £192) and the algorithm has only another 48 hours of data from my smart meter to chew on.  So clearly something is a bit screwy and this is why I was wondering if there was a glitch in the pricing from 1st April due to the lack of direction from the Govt pending the budget.   I wouldn’t mind this micro management of DD if I paid the DD more than once a month, but the only recommendation that counts is the one a few days prior to the payment being taken - so this makes all these in-month modifications seem rather pointless.  Anyway, here’s hoping for some clarification from HMT on Wednesday so we can budget properly.


Hi @Jeffus , @Emmanuelle_OVO ,  Thanks for your replies and guidance.  I was aware of how OVO manages its customers DD vs. consumption.  If anything OVO are a little too quick on recommending modifications to customers DD when either daily cold snaps or warm snaps affect my energy consumption (I am 100% electric with a heat pump which is very sensitive to changes in ambient air temps).  Looking at my payments screen today OVO are already recommending  I increase my DD from £184 to £193.  Even though my end of year balance has only changed by £9 (from minus £183 to minus £192) and the algorithm has only another 48 hours of data from my smart meter to chew on.  So clearly something is a bit screwy and this is why I was wondering if there was a glitch in the pricing from 1st April due to the lack of direction from the Govt pending the budget.   I wouldn’t mind this micro management of DD if I paid the DD more than once a month, but the only recommendation that counts is the one a few days prior to the payment being taken - so this makes all these in-month modifications seem rather pointless.  Anyway, here’s hoping for some clarification from HMT on Wednesday so we can budget properly.

OVO have said any change in DD due to rates will be communicated in an email so there shouldn't be anything related to that in the DD calculator currently. 


Hi @Jeffus,  Looking today my Apps DD page is suggesting I now increase my DD to £256 per month (a £72 per month increase) and predicting my balance will be in debit by £854 in 12 months time.  I know the Chancellor is at the dispatch box just now and by all accounts the EPG is going to be extended by another 3 months - so I’m still of the opinion that OVO’s DD algorithm has a glitch.  Or is it that this is based on the next 12 months with OVO.  I had thought it was originally until the the anniversary of my conversion to the “Simpler Energy” plan (which will be 30th Sept 2023).   I shall be interested to see if I am forced by OVO to move on to the high DD as the assumption I will be with them beyond the 30th Sep 2023 is a brave one and my own forecast balance (if I continue paying £184 per month) is £134 in credit by the end of Sept 2023.  My own forecast value is allowing for the EPG to remain in place until end June and then applying  32.28 ppkwh to my demand as a market price for Jul to end Sep (courtesy of Cornwall-Insights market forecast for Domestic Electricity).

 

I’ll be interested to understand whether this 12 month forecast impact on DD payments for contracts that can only be enforced with 30 days notice is going to become “a thing”.  I for one will be on to OVO Customer Services if I get one of those nice emails from them saying they are changing my DD without further engagement!!


Hi @Jeffus,  Looking today my Apps DD page is suggesting I now increase my DD to £256 per month (a £72 per month increase) and predicting my balance will be in debit by £854 in 12 months time.  I know the Chancellor is at the dispatch box just now and by all accounts the EPG is going to be extended by another 3 months - so I’m still of the opinion that OVO’s DD algorithm has a glitch.  Or is it that this is based on the next 12 months with OVO.  I had thought it was originally until the the anniversary of my conversion to the “Simpler Energy” plan (which will be 30th Sept 2023).   I shall be interested to see if I am forced by OVO to move on to the high DD as the assumption I will be with them beyond the 30th Sep 2023 is a brave one and my own forecast balance (if I continue paying £184 per month) is £134 in credit by the end of Sept 2023.  My own forecast value is allowing for the EPG to remain in place until end June and then applying  32.28 ppkwh to my demand as a market price for Jul to end Sep (courtesy of Cornwall-Insights market forecast for Domestic Electricity).

 

I’ll be interested to understand whether this 12 month forecast impact on DD payments for contracts that can only be enforced with 30 days notice is going to become “a thing”.  I for one will be on to OVO Customer Services if I get one of those nice emails from them saying they are changing my DD without further engagement!!

It is a rolling 12 months with the Simpler Energy plan. All suppliers work in the same way for those on the variable tariff. They all assume you will stay. 

It is till end of contract with only a fixed rate plan.

The Energy Price Guarantee was confirmed earlier this morning by the government via this:

If you ever want to question a DD i suggest calling collections.

0800 0699 831


My energy costs are working out around £34 / month.  I currently pay £30 but the OVO app suggests I will be £700 in debt at the end of the year and won’t let me adjust to anything less than around £90/month.  I assume this some sort of quirk? Does it reset at the end of the billing month? Or should I get OVO to intervene? Thanks


Hi @NFGoudie ,

If you’re on Simpler Energy, it’s probably best to leave things alone until mid-July and see what happens from there as prices are about to drop.

If you’re on Fixed Rate and think the calculations are wrong, https://help.ovoenergy.com to use Live Chat is probably the best place to ask for a review.

Either way, the calculations are reviewed pretty much daily and every time you submit a reading.


Hey @NFGoudie,

 

Welcome to the OVO Online Community,

 

It could be that it’s including your proposed wintertime usage. If you’re using more than the direct debit amount over summer, it’s likely when the usage increases over winter you’ll go into an arrears. The following topics may be helpful to you:

 

 

Or, it may be that estimated usage, or an out of line reading is causing your estimate annual consumption to be high. 

 

 

Hope this helps. 


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