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?
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Increase to Direct Debit - new way of calculating Direct Debit amount?
Best answer by Emmanuelle_OVO
Updated on the 29/08/25 by Emmanuelle_OVO:
Hey
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.
I’m retired, so my schedule does not change with the season. I have the same week on week activities that take me out of the house, summer or winter and the rest of the time I sit at home in front of TV or computer.
So my Computer/TV/Washing Machine/Fridge/Cooker sees the same usage every month.
All that is different is that I have 2 room lamps which will be on for perhaps 5 hours longer in Winter than Summer. Both these lamps have 5W LEDs in them so that equates to 1.5 kWh per month. With my normal total usage being around 150 kWh per month, the extra caused by these lights is 1%, so statistically irrelevant.
I agree that my usage does not match the norm here, but my complaint was based upon my not being a new customer, OVO had 3 years of previous readings to check this usage. They did not do so. They simply ignored my complaint and did not reply.
I have a low tolerance of poor service. You don’t get a second chance. Such a shame really, as their online account access was really rather good.
+7- Super User
I’m retired, so my schedule does not change with the season.
Me too.
OVO had 3 years of previous readings to check this usage. They did not do so.
Your FAC is based on ‘previous readings’. A customer who has three years’ worth of data from the same meter should have an FAC which accurately matches the actual consumption. This might not be the case for a new customer or a new meter until some months have passed.
My FAC changes weekly, so I get a new figure each Sunday morning. Knowing pretty well where the FAC comes from, I can predict on Friday what I’ll see on Sunday, within a few Wh. Here are December’s results:
on the same date this year and last
Grey crosses appear on Friday. Red crosses drop in on the following Sunday.
This shows that (a) we can work out where the FAC comes from, and (b) we can predict how it will change pretty accurately.
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OVO Energy Ltd, registered office 1 Rivergate Temple Quay Bristol, BS1 6ED, company no. 06890795 registered in England and Wales.
OVO (S) Gas Limited is registered in England and Wales (Company No. 02716495) at 1 Rivergate, Temple Quay, Bristol, BS1 6ED.
OVO (S) Gas Limited is part of OVO Group Ltd