I have lots of credit in my OVO online account - why are you suggesting a large increase in my monthly Direct Debit payment?

Updated on 08/09/25 by Abby_OVO

How do Direct Debits work?

A Direct Debit is an automatic monthly payment set up with your bank or building society. You can choose which day you want the payment to go out each month, and your bank will sort the rest.

Once your Direct Debit is set up, you don’t need to do anything else to make your payments.

Why is paying by Direct Debit the best way to pay?

Direct Debit is usually the simplest and cheapest way to pay for your energy. This is because:

• You don’t have to remember to make payments each month – it’s all done automatically 

• You’ll get a cheaper rate if you’re on our variable Simpler Energy tariff

• You’ll pay the same every month for your energy, which can help with budgeting

• A Direct Debit spreads your energy costs evenly over the year, which means you’re less likely to have to pay more in winter

How does OVO work out my monthly Direct Debit?

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.

It’s important you have all the info, then you can decide what’s best for you.

• If you request a refund online, sometimes we’ll need to confirm this over the phone. This is to make sure you have the details of how it’ll affect your energy account.

• Getting a refund might mean your Direct Debit payments will need to increase, once your account has less credit in it.

For more on how Direct Debits work, check out our handy YouTube video: How do direct debits work?

Need more help?

If you’re worried about your payments changing or you can’t afford them, please speak to our team. We can make sure you get financial support that’s tailored to you and your situation. There are many options available for anyone who needs help. To get in touch with our team: 

• Sign up to our online tool at ovoenergy.com/payment-support and we can find the best plan for you.

• Call us on 0800 408 6615. We’re here Monday to Friday, 9am and 5pm, and 9am to 2pm on Saturday. 

• Talk to us online at ovoenergy.com/help Monday to Friday, 8am to 6pm, and 9am to 2pm on Saturday. 

​​​​​​We’ve got some other topics on the Forum which may also be helpful if you’ve still got questions about how Direct Debits work: