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Rank 2
mwrutherford
Rank 2
August 12, 2022
Solved

Monthly Direct Debit vs Monthly Bank Transfer - which is better?

  • August 12, 2022
  • 24 replies
  • 1750 views

Hello.

 

I’m getting a bit fed up with with OVO increasing our monthly direct debit - especially after we paid a £200 lump sum in.  We’re on the Simpler Energy Variable Plan having come in from SSE.

 

Is it feasible to set up a monthly bank transfer & to cancel monthly direct debits?

 

PS. The new OVO Fixed Plan costs are shocking hence not wanting to go anywhere near those.

Best answer by Jeffus

Updated on 10/06/25 by Abby_OVO

 

Hello.

 

I’m getting a bit fed up with with OVO increasing our monthly direct debit - especially after we paid a £200 lump sum in.  We’re on the Simpler Energy Variable Plan having come in from SSE.

 

Is it feasible to set up a monthly bank transfer & to cancel monthly direct debits?

 

PS. The new OVO Fixed Plan costs are shocking hence not wanting to go anywhere near those.

 

Hi @mwrutherford

 

I don't work for OVO, i am just a customer like you. A few of us post where we think we may be able to help. I don't have access to your account. 

 

You can switch to paying on demand where you simply pay your bill once you get it. You would need to phone OVO to do this. Just be aware the tariff rates  are more expensive if you pay on demand rather than pay by direct debit.

 

You shouldn't just cancel your direct debit yourself as this will cause no end of issues for you. Given the increase in tariff if you don't pay by direct debit, i am not sure i would recommend that, but clearly up to you.

 

Ofgem are due to release the next price cap around the 26th of August, although it doesn't change until October. OVO will give you at least 10 days notice of what the actual change means for you.

 

For anyone transferring from SSE, I recommend checking the Future Annual Consumption on this page on the website not the app.

https://account.ovoenergy.com/plan

 

This is what OVO estimate you will use over the next year and this ultimately drives the direct debits. Check to see if it is reasonably close to what you typically use in a year historically. It is automatically updated an OVO see how much you use. 

 

Hope this helps? 

 

Paying by Direct Debit can be easier and cheaper

 

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

Check out this helpful topic on Direct Debits:

 

24 replies

Jeffus
Rank 20
JeffusSolved
Rank 20
August 13, 2022

Updated on 10/06/25 by Abby_OVO

 

Hello.

 

I’m getting a bit fed up with with OVO increasing our monthly direct debit - especially after we paid a £200 lump sum in.  We’re on the Simpler Energy Variable Plan having come in from SSE.

 

Is it feasible to set up a monthly bank transfer & to cancel monthly direct debits?

 

PS. The new OVO Fixed Plan costs are shocking hence not wanting to go anywhere near those.

 

Hi @mwrutherford

 

I don't work for OVO, i am just a customer like you. A few of us post where we think we may be able to help. I don't have access to your account. 

 

You can switch to paying on demand where you simply pay your bill once you get it. You would need to phone OVO to do this. Just be aware the tariff rates  are more expensive if you pay on demand rather than pay by direct debit.

 

You shouldn't just cancel your direct debit yourself as this will cause no end of issues for you. Given the increase in tariff if you don't pay by direct debit, i am not sure i would recommend that, but clearly up to you.

 

Ofgem are due to release the next price cap around the 26th of August, although it doesn't change until October. OVO will give you at least 10 days notice of what the actual change means for you.

 

For anyone transferring from SSE, I recommend checking the Future Annual Consumption on this page on the website not the app.

https://account.ovoenergy.com/plan

 

This is what OVO estimate you will use over the next year and this ultimately drives the direct debits. Check to see if it is reasonably close to what you typically use in a year historically. It is automatically updated an OVO see how much you use. 

 

Hope this helps? 

 

Paying by Direct Debit can be easier and cheaper

 

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

Check out this helpful topic on Direct Debits:

 

    M
    Rank 2
    mwrutherfordAuthor
    Rank 2
    August 14, 2022

    Hello Jeffus.

     

    Thank you for the detailed answer.  I won’t cancel the direct debit until I have a monthly bank transfer set up - if that’s feasible.

     

    Thanks again, Jeffus.

      Jeffus
      Rank 20
      Jeffus
      Rank 20
      August 14, 2022

      Hello Jeffus.

       

      Thank you for the detailed answer.  I won’t cancel the direct debit until I have a monthly bank transfer set up - if that’s feasible.

       

      Thanks again, Jeffus.

      @mwrutherford let us know what you decide to do after speaking to OVO in case it helps others in a similar situation.

      Good luck whatever you do.

      Blastoise186
      Super User
      Blastoise186Super User
      Super User
      August 14, 2022

      Strictly speaking, I don’t think OVO supports Standing Orders and I’m not aware of any supplier that does either. The only way you can do a monthly fixed rate bank transfer with OVO is via Direct Debit - any other payment method will cause your account to be put on the variable rate Simpler Energy tariff on a pay on-demand basis and you’d be asked to pay the full amount every month.

      Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
      Jeffus
      Rank 20
      Jeffus
      Rank 20
      August 14, 2022

      Strictly speaking, I don’t think OVO supports Standing Orders and I’m not aware of any supplier that does either. The only way you can do a monthly fixed rate bank transfer with OVO is via Direct Debit - any other payment method will cause your account to be put on the variable rate Simpler Energy tariff on a pay on-demand basis and you’d be asked to pay the full amount every month.

      @Blastoise186 

      Good point, I think he is just asking to pay on receipt of bill. I didn't hear any mention of fixed amount or standing order. 

      This page specifically mentions bank transfer, which could of course be done monthly on receipt of a bill i assume?

      I think that is all the poster is asking? 

      Blastoise186
      Super User
      Blastoise186Super User
      Super User
      August 14, 2022

      Yup, bank transfers are available if you’re paying on receipt/on-demand. However, OVO does also offer the Fixed Direct Debit regardless of tariff type and making a card payment is faster than a bank transfer while also giving you instant  confirmation.

      I’d personally only recommend doing bank transfers in cases where you’re unable to use any other method, since it takes up to 5 working days to process in some cases and won’t show up at all until OVO has processed it.

      Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
      M
      Rank 1
      Mr. Robinson
      Rank 1
      September 5, 2022

      Hello.

       

      I’m getting a bit fed up with with OVO increasing our monthly direct debit - especially after we paid a £200 lump sum in.  We’re on the Simpler Energy Variable Plan having come in from SSE.

       

      Is it feasible to set up a monthly bank transfer & to cancel monthly direct debits?

       

      PS. The new OVO Fixed Plan costs are shocking hence not wanting to go anywhere near those.

      You say tarrif will rise if paying on demand but this contradicts another forum co tributer who states the tariff rate is the same however you pay. Also, ovo state that if you cancel your direct debit ( they simply don't answer the phone quick enough, I.e. within half an hour) they send an email asking how you want to pay from now on. I'm doing g that as 350 quid from my 740 quid pension is simply unsustainable for me.

      Blastoise186
      Super User
      Blastoise186Super User
      Super User
      September 5, 2022

      I can confirm that I’ve seen cases across a lot of suppliers where paying on-demand is more expensive than paying via Direct Debit. This also appears to be the case with OVO based on historical information that I gathered a while ago.

      Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
      S
      Newcomer
      smithyuk1
      Newcomer
      September 6, 2022

      Can I cancel my direct debit for a fixed amount and just pay direct debit for what I use?

       

      I would like to just pay each month for what I’ve used that month (I understand that will cost more over the winter). I’d ideally like to keep it via direct debit but if not just be issued with bills.

       

      Is this possible? Is it a different tariff? I read through FAQ but the only thing I could find is it’ll cost around £129 a year extra but with no info about how this is calculated.

       

      I have tried online chat but I couldn’t get an answer he just kept saying you can view your bills online.

       

       

      Blastoise186
      Super User
      Blastoise186Super User
      Super User
      September 6, 2022

      Hi @smithyuk1 ,

      I’m afraid OVO doesn’t support Variable Direct Debits anymore. If you want to pay for only what you use in a particular month, you’ll need to cancel the Direct Debit and go onto Simpler Energy On-Demand. Be warned that you will lose your Direct Debit discounts and any fixed rate deals that you may be on. It may cost you around £200 a year more as well.

      Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
        Show more replies
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