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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

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Emmanuelle_OVO
Retired Moderator
Emmanuelle_OVO
Retired Moderator
February 13, 2023

Hey @Davesea,

 

Welcome to the OVO Online Community,

 

Just to add to what @Blastoise186 has advised, you do have the option to pay on receipt of your bill and cancelling your direct debit. But it works out more expensive, the following topics might be helpful to you:

 

 

Renewable Energy? Big Fan.
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Rank 2
DavidWSR
Rank 2
March 2, 2024

We are all aware of Direct Debit payments and know these can sometimes be the dodgy way to pay. They are dodgy in that these payments rely on you having enough money in your account when the payment is due to be collected. Having said that they are also a convienient way to pay without having to remember to do so and are prefered by utilities and many other businesses for good reason.

Before I moved to OVO my energy bills were collected by Direcet Debit quarterly on demand in full. This method is used by many other companies notably mobile phone operators who collect payments though a variable monthly direct debit arrangement. SSE ended mine before the transfer to OVO who have not re-introduced it.

Instead energy providers only collect direct debits on a fixed monthly payment. Why? When paying the bill in full each month is preferable rather than a fixed amount where sometimes you overpay and others underpay. Often customers end up with a credit balance.

Can OVO re-introduce varible Direct Debit payments? I prefer this so I pay more in the winter and have lighter bills in the summer. I’m interested to hear the reason this payment method is not offered.

Firedog
Super User
FiredogSuper User
Super User
March 2, 2024

You’re not the first to ask about this. You might want to add your vote here:
 

 

Noel | I have no official status; I'm just a volunteer who comes here to help other customers. My gear: Aclara SGM 1416-B Electricity-only E7 meter; Chameleon IHD3-PPMID-AAA | It may look as if I know what I’m talking about, but don’t let that fool you. |
    Blastoise186
    Super User
    Blastoise186Super User
    Super User
    March 2, 2024

    It is also worth noting that I don’t personally consider your reason for FDD being “dodgy” as being valid. If you’ve got bills to pay, you need to have the funds available by the due date regardless of how you pay. That alone kinda wipes out your reasoning tbh.

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