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mwrutherford
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August 12, 2022
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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

Show previous replies
S
Newcomer
smithyuk1
Newcomer
September 6, 2022

Thanks for the answer.

 

I am not on a fixed rate deal. How do you tell if have a direct debit discount?

 

Is Simpler Energy on Demand a different cost to Simpler Energy (my current tariff)? If it is do you know where I can find the cost of that tariff?

 

Thanks for your help

 

 

Blastoise186
Super User
Blastoise186Super User
Super User
September 6, 2022

I don’t know where the details are I’m afraid, but you would be notified automatically if the tariff is about to be changed as a result of cancelling the DD. To be honest, you’re probably better off leaving things as they are but it’s ultimately your decision, and yours alone.

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

Thanks for your help.

 

Without knowing the details I don’t know if I’m worse/better off or not.

 

I’ll have to give in and call to find out I think!

 

Thanks

    Emmanuelle_OVO
    Retired Moderator
    Emmanuelle_OVO
    Retired Moderator
    September 6, 2022

    Hey @mwrutherford,

     

    Welcome to the OVO Online Community.

     

    I can see you have met two of our community volunteers @Jeffus  and @Blastoise186 who have already given some helpful advice. 

     

    Just wanted to step in to clarify we have two Simpler Variable Plans one where you pay on demand and one paid by direct debit. You get cheaper rates on the Simpler Variable paid by direct debit. 

     

    It’s your choice how you pay but we would recommend continuing to pay by direct debit, as it’s cheaper, avoids a large spike in bills over the winter period and is automated. 

     

    Here’s a helpful guide which explain how OVO’s direct debit reviews work:

     

     

    Here are some extra resources you might find helpful:

     

    Price rises: we're here to support you

     

    Here’s the latest information on rising energy prices, and how we can help 

     

    Energy Bills Support Scheme

     

    This page has all the information that we and our call centre team have on the Energy Bills Support Scheme right now. 

     

    Ways to get financial support

     

    If you’re struggling financially or you’re worried about your energy bills, we’re here to support you. Find out about the different ways we can help here.

     

    Hope this helps!

     

    Renewable Energy? Big Fan.
    M
    Newcomer
    meldrewreborn
    Newcomer
    September 7, 2022

    OFGEM publishes the maximum charges in tables, based on zero consumption, and then 3,100 units of electricity, and 12,000 units of gas.  Assuming that suppliers charge the maximum for the standing charge (most do) it’s then possible to work out the likely standing charge daily figure and the unit rates too.  However, there are maximum figures for two fuels, 13 regions, and 3 methods of payment, plus economy 7/10.  So the devil is in the detail.

    So here goes. Assuming suppliers charge the maximum amount for the standing charge, from October 2022, pay on receipt of bill for Gas the standing charge is 17.7% higher (applies everywhere) than if you pay by Direct Debit.  Electricity standing charge is between 12.1% and 16.1 % higher depending on your region.  Unit rates for both fuels are at least 5.3% higher.  The average OFGEM dual fuel customer will pay an additional £215 per annum.

     

    I don’t know whether suppliers have actually published their rates yet, because OFGEM does allow them some wiggle room in setting their own rates, but internally they know what they will be and are no doubt using that information to revise Direct Debits going forward.  However, there would in normal circumstances be another OFGEM increase in the price caps in January 2023, but pending the Government announcement expected on 8th September, we don’t have a clue about how the support will be structured or implemented, how things will work in the future remains a big unknown.

    Eon and EDF customer. Don't think smart meters are worth the expense.
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    Newcomer
    ModsAreKeyboardWarriors
    Newcomer
    February 7, 2023

    What fees are incurred by cancelling the DD and settling in full every month?


    I am not sure who wrote the code but the predictor to rubbish wildly swings up and down even with a reduction in usage across the month to the previous… it anxiety-inducing. Usage is on the decline and DD increases from the previous month ??? with 0 arrears.

     

     

     

    BPLightlog
    Super User
    BPLightlogSuper User
    Super User
    February 7, 2023

    From calculations others have done elsewhere it looks like your cost would be around £200 more for the year. It will depend on your specific energy use though @ModsAreKeyboardWarriors 

    Bring me Sunshine ~ E&E {Solar PV, Battery Storage, Hybrid EV, ASHP and Home Assistant automation}
    M
    Newcomer
    ModsAreKeyboardWarriors
    Newcomer
    February 7, 2023

    Thanks BPLightLog.  

    D
    Newcomer
    Davesea
    Newcomer
    February 10, 2023

    Hi there

    i have received an email saying that my direct debit is going to change from variable quarterly to a monthly fixed amount. I’m quite happy paying as I am and trying to find out if this is compulsory . Any information on this would be appreciated 

    Davesea

     

     

     

    Blastoise186
    Super User
    Blastoise186Super User
    Super User
    February 10, 2023

    Hi @Davesea ,

    OVO doesn’t do Variable DD. You’re probably best off accepting the change, but if you really don’t like it you can discuss options by calling the Collections Team on 0800 069 9831.

    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!
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