Solved

Unexplained change to direct debits?

Forum|Forum|1 year ago
November 1, 2024
98 replies
3313 views

I have just noticed an unexplained 45% increase in my minimum direct debit payment caused by today's change to the calculation in the Direct Debit Calculator (now calculating through to end of March 2026, rather than the end of March 2025).

The impact of that change, if it is intentional, is that a lot of people (like myself) who already have a significant credit balance and are on course for a very healthy credit balance come 31st March 2025 are potentially still going to have to increase our direct debit payments and build up even bigger, and wholly unnecessary, credit balances (and further increase our direct debits if we want our credit balances refunded at the end of winter).

Are any of the OVO staff who monitor the forum able to share the full details of the changes and the logic behind them?

Also flagging that the changes don't seem to be compliant with the T&Cs.

Best answer by Emmanuelle_OVO

Updated on 11/06/25 by Abby_OVO

We're sorry to hear you're concerned and we can understand why you might be. Here's some more information on this, to make sure you have all the details.

How we work out your Direct Debit amount

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.

How we check you’re paying the right amount

Your Direct Debit payment amount will be regularly reviewed to make sure it still covers your home’s energy use.

We’ll let you know if your Direct Debit amount needs to change to keep your energy account balance up to date.

When your payment amount might change

Your payments might need to go up or down if something changes. For example:

Your home is using more or less energy than predicted.
Your energy prices have changed or they will soon, to stay in line with the price cap.
You’ve moved to a different tariff.
You’re likely to have less than a month’s credit in your energy account by 31 March. This credit is there in case your home energy use changes over the course of the year. For new customers, this only comes into effect once you’ve reached March.
You've missed a monthly payment, lowered your Direct Debit, or got a refund recently.
You’ve chosen an add-on, like Greener Energy.

If your Direct Debit amount needs to change, we’ll let you know.

We’ve got some other helpful topics all about Direct Debits which may be helpful if you’re still looking for more information:

Show previous replies

Firedog

Super User

I just don’t understand the rationale for this change. It might make sense for those on the SVT if you accept the principle of customers in credit subsidising those in debt.

For those on a fixed plan, and given an accurate FAC, there can be no justification for forcing a customer currently in credit to have a positive balance at the end of term. Once upon a time, the recommended (and often imposed) DD was reckoned to bring the account to zero balance at contract expiry. Even if I were to reduce my DD to the current recommended amount, I should still be in credit to the tune of 6.5 DDs when the plan comes to an end. How can this be right, @Emmanuelle_OVO?

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. |

S

Sanka14

Rank 2

Has anybody else been regularly notified by OVO to increase one's direct debit amount - despite having consistently been in credit by hundreds of pounds for the past couple of years?!!!

As long as I have at least 3 months worth of credit left in my account I should not be obliged to increase my monthly payments.

Sure - it's quite interesting/amusing to read that I shall be in debt to OVO to the tune of approx. £160 in 2026!, if I don't pay them a higher monthly direct debit amount now.

But: as long as my (for me!) comfortable credit isn't depleted or reduced to £50, I will not up my outgoings!

Besides: who's to say that our crippling energy + standing charges might not miraculously come down by 50% in April '25? (Here's hoping!!!)

B

BeePee

Super User

You are not the first to notice!

Take a look at

Unexplained change to direct debits | The OVO Forum

Annually: Petrol 1315l to 442l, Electricity 3779 kWh to 2465 kWh, Gas 17,853 kWh to 9128 kWh. 20 years of monitoring and tweaking.

Firedog

Super User

… been regularly notified by OVO to increase one's direct debit amount - despite having consistently been in credit …

How are you being notified? And how regularly?

It’s a bit surprising that your balance is forecast to be negative in March 2026. This shouldn’t be possible if, as you say, you’re ‘consistently in credit’.

If you look at the Direct Debit calculator, you’ll see that at some stage your account would dip into debt with the current DD amount. How reasonable this may be rather depends on whether you’re on a fixed-rate or variable tariff. If you’re on a fixed-rate tariff, the point where your balance crosses the line should not be before the contract’s end date. On a variable tariff, the account should remain in credit until a year hence. Apart from that, your forecast balance at the end of September should be high enough to see you through the following winter; if it isn’t, the recommendation to increase the DD is probably justified.

… who's to say that our crippling energy + standing charges might not miraculously come down by 50% in April '25?

Not likely, I’m afraid. The ones with the biggest crystal balls* are currently saying that next April’s price cap will probably be a bit higher than today’s, but by less than 1%. OVO’s DD calculator takes no account of predicted price changes. If there’s any change to standing charges, it’s not likely to take effect until October next year - and of course there’s nothing to say whether any change that does happen will be to your advantage.

*

Price cap predictions and insights | EDF
Price Cap Predictions and Changes - British Gas

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. |

Emmanuelle_OVO

Retired Moderator

Hey @Sanka14

Sorry for the issues you’re having

Like Firedog I’m surprised you’re being notified to increase your direct debit if you’re consistently in credit. Have your rates recently increased? Is there any out of line readings in your meter reading history? Are we in regular communications with your smart meter or getting reguar readings from you (if you have a traditional meter)?

When you use the direct debit calculator does it make more sense?

Renewable Energy? Big Fan.

C

costeek

Rank 2

@Emmanuelle_OVO I have the same notification when accessing my account from computer. My account is always in credit. My credit is enough to cover six month payments. I have never delayed any payment ever. Despite all of this my account says:

“You’re paying £[an amount] on the [date] of each month.

Your balance is set to be -[an amount] by 31 March 2026. Your minimum monthly payment is £[an amount].”

Just why? Why I should I think about the March 2026 if we are in the 2024 right now? Too alarmy for no reason.

C

costeek

Rank 2

Did you compose your long reply in an external editor, then copy it in and post it?

I'm not a moderator here, but where I do mod the automatic filters will often see that as a ‘too fast, may be a spambot’ post and send it to the queue to be approved (or rejected) by a human.

Nope ... even the second short reply, with quotes and less than two lines of input text, was sent to moderation.

Not long ago I had issues with writing a comment from my smartphone. Later on the day, I was back to my computer and everything was fine. I’m not a moderator here too, so, just guessing. Was your comment sent from any device which is not computer?

C

costeek

Rank 2

What about those not on fixed tariffs? I understand that this new arrangement applies to them, too.

I’m not on fixed tariff and new arrangement applies to me too.

Firedog

Super User

What about those not on fixed tariffs? I understand that this new arrangement applies to them, too.

I’m not on fixed tariff and new arrangement applies to me too.

Yes, I know. I only wrote that because of the fifth sentence 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. |

Emmanuelle_OVO

Retired Moderator

Hey @costeek

I understand your frustration,

It’s hard for me to comment on account specific scenarios without more information. I’m surprised you’re being notified to increase your direct debit if you’re consistently in credit. Have your rates recently increased? Is there any out of line readings in your meter reading history? Are we in regular communications with your smart meter or getting regular readings from you (if you have a traditional meter)?

Renewable Energy? Big Fan.

Show more replies

Unexplained change to direct debits?

How we work out your Direct Debit amount

How we check you’re paying the right amount

When your payment amount might change

98 replies

Contact us

About us

Tips & advice

Resources

For business

How we work out your Direct Debit amount

How we check you’re paying the right amount

When your payment amount might change

Need advice from other members?

Sign up

Log in to the OVO Forum

Contact us

About us

Tips & advice

Resources

For business