I am currently paying by DD and have built up a credit of in excess of £500. I’m on the standard variable price cap rate for gas and electricity. I appreciate that this is going to increase and also that it’s summer so I will be using far less energy than in winter and the idea of DD is to pay a fixed amount over 12 months to cover the usage. I however resent OVO holding on to my money and I would rather it be sitting in my own bank account. If I cancel my DD and pay by bank transfer/card each month on receipt of bill for exact monthly usage will I end up paying any more? What I mean is, OVO obviously prefer DD so are there any additional charges/increase in tariff if I don’t pay by DD?
Will my tariff increase if I cancel my direct debit?
Best answer by Blastoise186
Updated on 17/12/24 by Abby_OVO
Be aware, if you’re on a fixed rate plan, that cancelling your Direct Debit will cancel this plan and you’ll be moved onto the Simpler Energy On Demand plan automatically.
Hiya!
Just so you know, I’m one of the forum volunteers who helps out in my spare time. I don’t work for OVO myself.
The answer is… Possibly… But it depends on circumstances.
If you cancel the DD, you WILL lose the safety net of any active fixed rate deal and will be forced onto the Simpler Energy tariff. Now is not a good time to do that if you’re not already on that tariff.
You only ever pay the same amount for your energy anyway regardless of payment method with OVO and I’d personally recommend leaving things how they are - that £500 credit will help you a lot over the next eight months. It’ll act as a buffer that gets used up first and will help with your budgeting.
If you really want to switch methods, please discuss this with OVO first and use the proper process to change payment method via the Support Team. Please DO NOT just cancel the Direct Debit as this will likely trigger the Collections Team to contact you (and that’s not ideal for either them or you).
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