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

My Direct Debit has changed recently. Will it change again because of the price cap?

Yes, it could change – but it depends. Your Direct Debit will be based on your new prices, as well as the energy your home has used over the past year. If the Direct Debit looks too high or too low, we'll let you know and it might be changed automatically. 

This is to make sure you don’t build up unexpected debt by 31 March 2026. We always want to avoid that happening to you.

How does OVO work out my monthly Direct Debit?

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

This could be down to a few reasons. Sometimes, even if your balance is in credit, your monthly payments still need to go up.

Usually, this happens if it looks like your balance is going to drop below £0 by 31 March 2026. We want you to avoid building up any unexpected debt – we never want that to happen to you. So we work out if that’s likely by predicting how much energy your home will use, then checking if your payments will cover it. 

It’s also useful for your balance to be in credit. It can act like a pot of money to cover those times when your energy use might be higher. For example, you’re likely to build up credit in the summer months when energy use is lower. But you might need to use this credit in the winter months when it’s colder and darker – and your energy use is usually much higher. 

We regularly check your Direct Debit to make sure you’re paying the right amount.

Will my bills be lower if I pay through Direct Debit?

Yes, if you're on a variable-rate tariff then you’ll pay less if you pay by Direct Debit. This is compared to paying after you get your bill. 

We estimate our average customer will save £112 a year by choosing Direct Debit.

Paying a monthly Direct Debit means you never have to remember to pay your bill. It also helps with budgeting, by splitting the cost of your energy bills into equal payments throughout the year. Then you’re paying the same amount – whether it’s winter or summer.

How Direct Debits work help article

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

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.

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,  the bank needs 10 working days notice of a direct debit change, so if the date is changed to within the next 10 days from the date you change it, it will take effect from the following month. You’ll 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

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

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!