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Rank 1
June 16, 2025
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Increase to Direct Debit - new way of calculating Direct Debit amount?

  • June 16, 2025
  • 133 replies
  • 4154 views

Ovo want to increase by direct debits so that I am one month in credit by the end of March next year. I queried this with them as previously the payments were worked out so that the amount was £0 at the end of the 12 month period. They’ve said they have changed their DDM calculations so I have to accept this. I think this is v unfair. Is there any way round this? 

Best answer by Emmanuelle_OVO

Updated on the 29/08/25 by Emmanuelle_OVO:

Hey ​@Lorna C,

We have made the change to build one month's usage credit by the end of the winter period on our customers accounts. This credit will help to cover any changes to your energy usage or costs throughout the year leading to a smoother payment journey. Your Direct Debit is managed to ensure that you do not build too much credit on your account and also ensures your account does not fall into arrears should anything change with your usage. If you do build more credit on your account than is needed, we will recommend you reduce your payments or alternatively, you can request a refund at any time Our recommended Direct Debit amount is a suggested amount to ensure you pay for your predicted energy and don't end up with any debt or too much credit by the end of the Winter period. Your energy costs may go up or down throughout the year and we want to support you with those changes. Paying by Direct Debit helps to spread those costs so you don't end up with large bills to pay, and paying by Direct Debit is one of the cheapest ways to pay. 

 

How we work out your Direct Debit amount

 

The aim is to make sure you have credit for 1 month’s payment in your OVO account by the end of March. This is to help cover any change in your home energy use over the course of the year. 

 

For new customers, this only comes into effect once you’ve reached March. When you first join, the aim is to make sure you have no balance left to pay after 1 year.

 

Your Direct Debit payment amount will be regularly reviewed to make sure it still covers your home’s energy use.

 

Why is my Direct Debit increasing when my balance is in credit?

 

It’s normal for a credit balance to build up in your energy account over summer, when energy use is usually lower. This credit can help pay for your energy in winter, when most homes use more. It helps you spread your energy costs over time. Even if your energy account is in credit, sometimes your Direct Debit payments still need to increase.

 

This could be the case if we’ve worked out that your OVO account is likely to have a debt balance long term – based on how much energy your home is predicted to use. 

 

You can always choose to get a credit refund if you prefer. Request one at any time in your online account, in our app, or over the phone. You just need to leave credit in there for 1 month’s payment. This is in line with our refund policy.
 

 

133 replies

Firedog
Super User
Super User
December 9, 2025

Was told my tariff wasn't compatible with the new meter and was put on a tariff that more than halves the amount of off peak electricity I get.…
  

You will have been given a choice before the meter exchange, so it may not be completely accurate to say you were ‘put on a tariff’. 

There’s no limit on how much offpeak electricity you can use (within reason, that is). The number of offpeak hours may be lower, though; some RTS systems had a separate 24-hour lower heating tariff, but that will have gone. Some RTS replacements are configured for 10 hours offpeak, possibly more than were originally available for storage heaters. Which tariff are you now on? Do you have storage heaters?

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Newcomer
December 9, 2025

I was on a tariff for about 25 years, which was done away with because it wasn't profitable enough…

It gave 12 hours off peak per weekday all day at weekends , plus a separate lower stored heat rate. 

Changing to smart meter, I was told the only tariff I could have now is economy 10.... So I've lost 60 hours off peak electricity per week. 

So yeah, I got the choice of economy 7 or economy 10.…

Not really a choice though.

 

 

Firedog
Super User
Super User
December 9, 2025

So yeah, I got the choice of economy 7 or economy 10.…
  

No comparison there, I see - depending on what the peak, offpeak and heating rates were, of course. Some of the ones I’ve seen were eye-watering. I hope you’re managing to keep warm at a manageable cost.

Did you ask Support if you could freeze your DD for three months in view of your forthcoming absence? What did they say?

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
Newcomer
December 9, 2025

Yeah I've been stiffed big time on tariffs. I'm lucky I can afford it but there must be many in the same position for whom it was disastrous. 

I've emailed OVO to tell them to leave my DD alone. I shouldn't have to explain why!

Rank 12
December 10, 2025

 

I've emailed OVO to tell them to leave my DD alone. I shouldn't have to explain why!

However, as you have explained, your meter was replaced recently due to the switching off of the RDS system, something outside of the control of every company. You have a new tariff so OVO have no idea how much energy you are likely to consume as they will not have enough data from you to make a proper estimate. If you are unwilling to give them the information that might help, then, perhaps, if you can afford it, you should enjoy your time away, safe in the knowledge that, when you return, you will have credit on your account that will allow you to heat up your home again after being empty. As many of us found in the cold snap in November and the below 0°C temperatures of just a few days ago, warming up the fabric of our homes as well as the interior of them takes quite a while. If, at the end of the winter, you have a lot of credit, you can, of course, request a refund. 

Newcomer
December 10, 2025

The data for my winter usage is available from previous years... The pricing has rocketed but the number of KW/h is a standard. 

 So my payments stay the same, rather than me cancelling them 

As they have done the entire time I've been here, but the company hasn't hiked my DD to this degree at any time in the past.

I understand the principle, but I don't get interest on the credit they hold for me, so I'm not going to increase that amount!!

Nukecad
Super User
Super User
December 10, 2025

So I'm currently £287 in credit and paying £175 per month. 

OVO wants it up to £205 per month to cover me till march. 

Great, except my usage will drop as I'm away for 2 months, but the system won't let me keep my DD at the same amount.

You yourself should be able to get the £205 reduced to £184.50 instantly.

Login to your online account and go to "Adjust your Direct Debit".
Click the green "Continue" button.
Scroll down a few lines, do you see this?

If you see that then you can click on “Reduce payments now” to instantly reduce your DD to however much it says, (for you that should be 205x0.9= £184.50),and peg it there for the next 3-months.

If you don't see that, or if want a bigger reduction then you need to contact support.

PS. The DD calculator doesn’t know that you will be away for a few months, and wouldn’t take it into acount anyway.
(OVO don’t seem to trust their customers to manage their own budgets and set their own DD’s, but you can get round things like with that reduction tool or by talking to support).

 

I said, Hey - Watts going on.
Newcomer
December 10, 2025

Hi thanks, tried that first and it won't let me adjust it down at all....

Nukecad
Super User
Super User
December 10, 2025

@Heilan_coo do you actualy see that Green “Reduce payments now” button?
If you see it then have you actually clicked on it?

If it shows that message with the “Reduce payments now” button, (and you haven’t already used it to reduce your payment from the recommended), then clicking on that green “Reduce payments now” button will reduce it instantly.*

Even when putting in an amount in the box above, or the box on the previous page, won’t let you reduce the DD payable clicking on that green button will reduce it for you to the amount stated, and will do it instantly.

*(Obviously though you can only use that button once to reduce it - unless it later shows you that the recommended DD has dropped, so you can then drop your already reduced payment by another pound or two).

I said, Hey - Watts going on.
Ben_OVO
Community Manager
Community Manager
December 10, 2025

@Heilan_coo it’s a shame for you and many others what happened with the closure of the RTS signal. Unfortunately, this was an Industry decision, and was not down to OVO so, when it came to offering solutions, our hands were somewhat tied.

 

Regarding your Direct Debit, our computer systems are programmed to estimate future consumption on the basis that you’ll be in the property using energy. If you’re going to be away for a couple of months then we’ll have no way of knowing this without you telling us. An advisor can have this discussion with you, and ensure that your Direct Debit isn’t increased for that time. Get in touch with our Support Team and explain the property will be vacant - they should be able to put a freeze on your Direct Debit.

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