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Lorna C
Rank 1
June 16, 2025
Solved

Increase to Direct Debit - new way of calculating Direct Debit amount?

  • June 16, 2025
  • 133 replies
  • 4157 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

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I
Newcomer
ISR51
Newcomer
October 19, 2025

… we have proved mathematically that you have already over estimated previous readings.

The way to avoid estimated readings is to submit them manually at least on the first day of every billing period - or get a smart meter. 

  

… will we get compensation for being over charged?

Money you pay by Direct Debit {DD) is credited to your OVO account. It remains yours, but it’s used to defray the charges laid out in your bill. Paying too much just increases the balance on the account - it’s not an overcharge.

When you agree to pay by DD (and benefit from the lower rates this entails), you also agree to keep your account always in credit. As ​@Nukecad pointed out, OVO have recently gone even further, expecting you to have a month’s costs in credit at the end of winter. This will involve a small increase (0.7% of the projected annual cost) in the DD amount. 

One frequent cause of unreasonably high DD demands is in incorrect Future Annual Consumption figures on your account. You can see these on your Plan page. These are adjusted when meter readings are received - another good reason to submit regular readings, or get a smart meter. 

This is misleading; 0.7% is the effect on one month's direct debit which you the

 have to do 12 times a year

 

As a  example , if estimated annual cost was £1200 then DD would be £100 based on the normal method of calculation.  With OVO they would divide (1200 +100)/12 = £108.33 I.e a  8% increase a month

    Firedog
    Super User
    FiredogSuper User
    Super User
    October 20, 2025

    This is misleading; 0.7% is the effect on one month's direct debit which you then have to do 12 times a year

    … if estimated annual cost was £1200 then DD would be £100 based on the normal method of calculation.  With OVO they would divide (1200 +100)/12 = £108.33 I.e a  8% increase a month
      

    The monthly increase in your example - £8.33 - is not quite 0.7% of the projected annual cost, as I wrote. My own estimated annual cost is about £450, so the increase in the monthly payment is ~£3, which I won’t make a fuss about. I’m sorry if you were misled. 

     

    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. |
    S
    Newcomer
    Soon to be ex-OVO customer
    Newcomer
    October 20, 2025

    Just spotted the direct debit hike in the OVO.app.

    Wow!

    Goodbye OVO, hello Octopus.

     

    E
    Newcomer
    Em7260
    Newcomer
    October 22, 2025

    Can OVO change our DD amount without informing us beforehand and without our permission? Despite being in credit for over £200, our DD has been changed from £160 a month to £245. Told them we cannot afford this change and they will send us overdrawn if they take this amount out in November??

    Firedog
    Super User
    FiredogSuper User
    Super User
    October 22, 2025

    Can OVO change our DD amount without informing us beforehand and without our permission?
        

    Sadly, yes. They are though bound to tell you in good time so you can take steps to avoid the situation you describe. ‘In good time’ means you could cancel the upcoming payment, but that wouldn’t be the best way forward.  

      

    Despite being in credit for over £200,
      

    That doesn’t mean much, because the balance on your account changes daily, usually from a high point just after the DD is taken to a low one just before the next is taken. Here’s mine from August, where it increased 10-fold overnight: 
      

      

    Told them we cannot afford this change ...
      

    That should have prompted Support to offer to help. They may be able to pause the increase for some time while a lasting solution is worked out. If these remedies aren’t enough, there’s advice on what to do next here: Struggling with your energy bills? We’re here to help | The OVO Forum. You’ll see that that article includes a link to a quick and easy tool to help you: Payment support | OVO. There’s another article with perhaps a bit more detail here: Struggling to Pay Your Energy Bills? We Can Help

    Please let us know how you get on.

     

    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. |
      P
      Newcomer
      Paulyc
      Newcomer
      October 30, 2025

      I received an email telling me my monthly direct debit is going up by £20 a month. This month I was under our currently agreed limit by £5. £30 is one hell of a hike, which I’m not happy to agree to. Advice welcome. 

      Ben_OVO
      Community Manager
      Ben_OVO
      Community Manager
      October 31, 2025

      ​@Paulyc let us know how you get on following ​the advice above.

       

      The Direct Debit review procedure is in place to ensure that your account doesn’t fall into debt during the winter months when your usage is higher than average. The guide below gives advice on how to check the Direct Debit calculator online and in the app:

       

       

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      M
      Rank 2
      mum3girls2025
      Rank 2
      November 4, 2025

      I am getting fed up with my direct debit payment being ‘adjusted’ almost every month. Its never consistant. I understand the need to remain in credit-but how can I budget when every month it is a different amount even when I have credit of over £200. Whats a ‘month’s credit’ when its always changing in the first place! I have never known any other industry-or energy company-which changes peoples direct debits so frequently! Its making it very difficult to budget month by month when my direct debit to OVO is adjusted every 1-2months. I dont understand why its so frequently changed -its not giving time to adjust/monitor my usage. Im always in credit yet for example it increased by £80 this month-then on the app its saying next month its reduced by £40! 

        Firedog
        Super User
        FiredogSuper User
        Super User
        November 4, 2025

        This shouldn’t happen, although I suppose it might if the account goes into debt at some stage, which is against the core terms.

        You say you have a credit balance of £200. With OVO’s live billing model, the balance changes daily*, so a credit balance can soon shrink. Have you looked at the Direct Debit Calculator? This will help explain why your DD has to change if it does.  Post back if you’re none the wiser.
          
          

        *    I plotted my balance for each day in August:
          

         

        The upwards lurch shows when the DD was taken. Afterwards, the balance (£38.22) was suddenly more than tenfold what it had been the night before (£3.69). I hope this illustrates why “I have a credit of over £200” doesn’t really mean very much. 

         

        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. |
        M
        Rank 2
        mum3girls2025
        Rank 2
        November 4, 2025

        Ive used the calculator to see how they calculate and every month its different due to less months remaining to March 2026. Our usage ranges from £110-£120 in summer months, to £190-£200 in winter. I used the annual usage for the last couple of years to get estimates when renewinf and usage fairly consistant. We paid £260 a month for 3 months, then last week it was £320, its now saying next month our DD will be £310. Each month or 2 is a different DD. Its frustrating. I dont understand if they use the estimated annual usage and divide by 12 or however it is-why they then do it EVERY month and get a totally different value-which then adjusts our DD. I would rather pay excess amount and build credit overwinter. This everchanging monthly direct debit is fristrating. 

        Show more replies
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