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John W
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August 15, 2019
Solved

Does the Direct Debit contract calculation take into account any credit on my account?

  • August 15, 2019
  • 36 replies
  • 985 views
Does the 2 year contract calculation of direct debit amount take into account any credit on my account? If it is not taken into account the renewal direct debit is too high.
Best answer by Tim_OVO

Updated on 04/11/24 by Abby_OVO

 

For a helpful introduction to Direct Debit calculations watch the video below:

 

 

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.

 

What’s a Direct Debit Check In?

 

As the amount you use may change, we’ll regularly check that the payment amount is enough to cover your energy costs and leave you with a clear balance at the end of your plan. There is a helpful breakdown of how we work this out on your Direct Debit calculator which can be found on the ‘Payments’ page of your online account or OVO app (download for Android or iOS):

 

Need more help understanding your Direct Debit recommendations? Check out the great guide below:
 

36 replies

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Emmanuelle_OVO
Retired Moderator
Emmanuelle_OVO
Retired Moderator
September 20, 2022

 Hey @Polardog,

 

Welcome to the OVO Online Community.

 

Great to see our community members giving some tip-top advice here! 

 

Just wanted to add you can see more about this topic in this helpful guide we’ve made: 

 

 

You might also find this similar thread useful:

 

 

Hope this helps.

 

Find out more about the Price Cap Increases and how OVO can help here

Renewable Energy? Big Fan.
J
Newcomer
JANI1926
Newcomer
October 3, 2022

Hi everyone. I have a big problem with OVO. Today I paid 70 pounds for my electricity and gas bill and after a few hours they charged me +70 pounds. I see that I have made a bill of around 30 pounds a month because I am away from home all day because of work and they make me pay twice as much.. Last month I paid 100 pounds while I only used 30. Can someone help me.. Thank you

juliamc
Rank 20
juliamc
Rank 20
October 3, 2022

If you’ve paid more into your account than your actual bill the excess will just sit as a credit balance. How are you seeing that you only use £30 a month? Have you got a smart meter or does OVO have a correct recent meter reading?

    J
    Newcomer
    JANI1926
    Newcomer
    October 3, 2022

    Thank you very much for the reply. I have a smart meter. Every time I pay more than I should and they have not refunded me anything.. I am very disappointed.

    juliamc
    Rank 20
    juliamc
    Rank 20
    October 4, 2022

    You can request a refund on your online account. Or you could just pay what you’ve used and stop the credit building up. 

      Emmanuelle_OVO
      Retired Moderator
      Emmanuelle_OVO
      Retired Moderator
      October 4, 2022

      Hi @JANI1926,

       

      Welcome to the OVO Online Community.

       

      The direct debit is an average for the year, so you’d expect to pay more during the summer months so that the extra credit carries you through the winter months. Here are some great guides we have which give more information about this topic:

       

       

       

      If you still think you’re paying too much, you can reduce your direct debit to the recommended amount on your Online Account or request a refund. 

       

      You can request a refund on your online account. Or you could just pay what you’ve used and stop the credit building up. 

       

       

      If you’re on the Simpler Variable tariff it’s worth bearing in mind your prices will be increasing. Find out more about the Energy Price Guarantee here. 

       

      Hope this helps. 

      Renewable Energy? Big Fan.
      B
      Newcomer
      bjw
      Newcomer
      October 4, 2022

      I’m £871 in credit, Ovo want to increase my DD from £350 to £472 per month. 

      I have done a rough calculation and it shows we are unlikely to use all the credit balance up until 1st April next year. 

      We have recently reduced our useage by being more careful and are one less person in the house since mid September. 

      Just managed to have a conversation on whatsapp with a real human being and I’m now on the exemption from contact list for 3 months.  No more hassle to increase for the next 3 months.  Worth a try if anyone is struggling to see the justification for the increases. 

        S
        Newcomer
        smillar
        Newcomer
        October 4, 2022

        I’m £871 in credit, Ovo want to increase my DD from £350 to £472 per month. 

        I have done a rough calculation and it shows we are unlikely to use all the credit balance up until 1st April next year. 

        We have recently reduced our useage by being more careful and are one less person in the house since mid September. 

        Just managed to have a conversation on whatsapp with a real human being and I’m now on the exemption from contact list for 3 months.  No more hassle to increase for the next 3 months.  Worth a try if anyone is struggling to see the justification for the increases. 

        Appreciate this as I’m £633 in credit (that’s before they even amend the price to match the govt cap) been unable to speak to anyone and waiting for a reply from a human on WhatsApp.. several hours and counting.

          juliamc
          Rank 20
          juliamc
          Rank 20
          October 4, 2022

          Do keep sending in meter readings (unless you have a smart meter of course) especially if you’ve made changes to your usual use pattern, then the OVO system won’t estimate.

            Emmanuelle_OVO
            Retired Moderator
            Emmanuelle_OVO
            Retired Moderator
            October 5, 2022

            Hey @smillar- keep us posted! 

            Renewable Energy? Big Fan.
            Show more replies
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