Updated on 04/11/24 by Emmanuelle_OVO:
If you’re logging in to your online account or OVO app (download for Android or iOS) regularly you might have spotted a recommended Direct Debit amount showing on the Homepage.
So you might be wondering how we work out this recommended amount, we’ve got a tool which might help.
If you click ‘Change Direct Debit amount’ you’ll be greeted by this page,
You can see the basic breakdown of how the recommended Direct Debit amount is worked out by clicking ‘How we work out your recommended Direct Debit amount’.
This shows how we use your predicted costs, current balance and remaining months left on your plan to determine a sensible monthly amount to cover your costs.
For a more in-depth view, you can access our great Direct Debit calculator by clicking ‘check out the Direct Debit calculator’ from the ‘Change your Direct Debit’ page,
The Direct Debit calculator gives a visual representation of the projected outcome to any Direct Debit changes. In the example below, you can see the predicted costs until the end of your current plan shown in the graph. The expected balance at the end of the period and the recommended Direct Debit increase are highlighted in the red text box. The current Direct Debit amount and recommended Direct Debit amount are also shown by the solid and dashed lines on the graph,
It’s possible to adjust the graph to show the anticipated costs over 12 months (based on your current rates), alternatively you can view this same information as the effect these costs would have on your account balance for the same periods,
You’re able to change the figure in the ‘Direct Debit’ amount box to update the graphs based on what would happen to your balance were you to adjust your payments to this amount. This helps to visualize the most suitable amount you should be paying.
As we want to make sure you’re paying enough to keep you covered, you’ll only be able to adjust your Direct Debit amount to the calculated minimum, although we understand an unexpected increase to your payments might not be affordable for you. Your Direct Debit amount is reviewed regularly to ensure that you’re paying enough and we’ll contact you if it needs to be increased. Find out more here on how we review your Direct Debit if you’re on a fixed contract:
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.
FAQs
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:
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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
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take away your current balance, factoring in any credit or debt
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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.
♀️I’ve just made another top up payment so hopefully aug should be debt fee