Does the Direct Debit contract calculation take into account any credit on my account?
Best answer by Tim_OVO
Updated on 04/11/24 by Abby_OVO
For a helpful introduction to Direct Debit calculations watch the video below:
How does OVO work out my monthly Direct Debit?
To work out your monthly Direct Debit amount, we:
-
look at your energy use so far and estimate how much you’re likely to use by 31 March 2026. This includes any costs, such as standing charges and add-ons
-
take away your current balance, factoring in any credit or debt
-
divide the result by the number of payments left until 31 March 2026, which gives us your monthly amount
We aim to bring your balance to £0 by 31 March 2026. This way, you won't owe us anything, and we won't owe you anything, making it easier to manage your energy costs.
We regularly check your Direct Debit to make sure your balance is on track.
Why is my Direct Debit increasing when my balance is in credit?
This could be down to a few reasons. Sometimes, even if your balance is in credit, your monthly payments still need to go up.
Usually, this happens if it looks like your balance is going to drop below £0 by 31 March 2026. We want you to avoid building up any unexpected debt – we never want that to happen to you. So we work out if that’s likely by predicting how much energy your home will use, then checking if your payments will cover it.
It’s also useful for your balance to be in credit. It can act like a pot of money to cover those times when your energy use might be higher. For example, you’re likely to build up credit in the summer months when energy use is lower. But you might need to use this credit in the winter months when it’s colder and darker – and your energy use is usually much higher.
We regularly check your Direct Debit to make sure you’re paying the right amount.
What’s a Direct Debit Check In?
As the amount you use may change, we’ll regularly check that the payment amount is enough to cover your energy costs and leave you with a clear balance at the end of your plan. There is a helpful breakdown of how we work this out on your Direct Debit calculator which can be found on the ‘Payments’ page of your online account or OVO app (download for Android or iOS):
Need more help understanding your Direct Debit recommendations? Check out the great guide below:
Updated on 04/11/24 by Abby_OVO
For a helpful introduction to Direct Debit calculations watch the video below:
How does OVO work out my monthly Direct Debit?
To work out your monthly Direct Debit amount, we:
-
look at your energy use so far and estimate how much you’re likely to use by 31 March 2026. This includes any costs, such as standing charges and add-ons
-
take away your current balance, factoring in any credit or debt
-
divide the result by the number of payments left until 31 March 2026, which gives us your monthly amount
We aim to bring your balance to £0 by 31 March 2026. This way, you won't owe us anything, and we won't owe you anything, making it easier to manage your energy costs.
We regularly check your Direct Debit to make sure your balance is on track.
Why is my Direct Debit increasing when my balance is in credit?
This could be down to a few reasons. Sometimes, even if your balance is in credit, your monthly payments still need to go up.
Usually, this happens if it looks like your balance is going to drop below £0 by 31 March 2026. We want you to avoid building up any unexpected debt – we never want that to happen to you. So we work out if that’s likely by predicting how much energy your home will use, then checking if your payments will cover it.
It’s also useful for your balance to be in credit. It can act like a pot of money to cover those times when your energy use might be higher. For example, you’re likely to build up credit in the summer months when energy use is lower. But you might need to use this credit in the winter months when it’s colder and darker – and your energy use is usually much higher.
We regularly check your Direct Debit to make sure you’re paying the right amount.
What’s a Direct Debit Check In?
As the amount you use may change, we’ll regularly check that the payment amount is enough to cover your energy costs and leave you with a clear balance at the end of your plan. There is a helpful breakdown of how we work this out on your Direct Debit calculator which can be found on the ‘Payments’ page of your online account or OVO app (download for Android or iOS):
Need more help understanding your Direct Debit recommendations? Check out the great guide below:
My account is 350.00 in credit my DD is 200.00 a month they say they estimate my account will be minus 1025 in a years time, I plan to pay DD OF 200 each month and put the energy rebate back on my account I have had an email up your DD to 279.00 or pay £1025. I would have paid extra on my account if needed, i am on the phone if they don’t leave it, I will cancel my DD.
+1- Plan Zero Hero
- 7898 replies
Hi,
I’m afraid this doesn’t sound like a valid Idea, so I’ve asked a moderator to convert it to a Conversation for better visibility.
Thanks for understanding!
+1If you cancel your DD you will move onto standard credit terms which for an average user costs over £200 more per year. Think about it!
Hey
Thank you for your post, this is understandably something concerning a lot of our customers at the moment.
If you are on the variable plan we’ve got a great guide which explains why prices are increasing and what support OVO has available for our customers. The reason for the direct debit review would be because prices will be increasing significantly in October and there may be further increases in future.
Here we have a helpful tutorial which shows how OVO calculates direct debits:
If you’ve recently fixed into a new plan, your prices now would be a lot higher than they were before. You can check the difference between your previous and current rates by logging on to your online account and downloading your statements.
I hope this helps.
+1Why is the choice so stark? Why should the customer pay the alleged deficit up front - which would put the account in substantial credit for most of the 12 months. Being in credit by £350 and paying in £200 per month, its going to be quite a few months before the account is in net balance. Why the need for action now?
+1- Plan Zero Hero
- 7898 replies
Will it be easy to to reset the DD I cancelled
Yes it will. Once OVO notifies you about the DD being cancelled, you’ll be able to set it back up in minutes.
+1
It should be. You could go into your account online and see if you can amend you DD back to the same details as before, and if that doesn’t work contact customer services in the usual manner.
Your email is almost identical to the one I received. I'm £300 in advance, they want to double DD or for me to pay £1500+ upfront to keep as is. I've cut down enormously on my usage and will continue to do so. Therefore the prediction for the year won't be that much. I plan to keep DD payments as is and add extra payments as and when I see my account payments getting low. That's if I can get through! Phone line was terrible and in a queue. The online messages said an agent would be with me in 714 minutes!!
I fail to see how my monthly billing is in April I’m charged £54.73p and in August my bill is £53.07p yet it is mid summer and hardly any appliances are switched on or even plugged in it’s my belief this company are just billing what they feel like…it’s a rip off there is no way we used £53.07p of electricity in August !
+2- Carbon Catcher***
- 232 replies
Do you know your usage in kWh for April and August?
Are the meter readings on your bills actual or estimated readings?
+2- Carbon Catcher***
- 232 replies
Also, I assume you were on the same tariff for these months?
APRIL
Well I assume they work out the standing charge @ .41.32 x 30 days = £12.40p
Leaving £42.33p @ .27.10p per unit would mean I used 156.19Kw @ average 5.20Kw per day
Is that how you would work this out
+3- Carbon Catcher***
- 1258 replies
Your bill will say how many units you’re charged for. Would you like to share ? without personal info or acc number. You’re on a good unit rate there - I’m a bit jealous!
+1Yes to both the title and thread question. If you are on a variable tariff prices are still rising but due to the governments action direct debit for nearly all customers will need reappraising soon, but prices wil then remain the same for 2 years.
Hey
Welcome to the OVO Online Community.
Great to see our community members giving some tip-top advice here!
Just wanted to add you can see more about this topic in this helpful guide we’ve made:
You might also find this similar thread useful:
Hope this helps.
Find out more about the Price Cap Increases and how OVO can help here
Hi everyone. I have a big problem with OVO. Today I paid 70 pounds for my electricity and gas bill and after a few hours they charged me +70 pounds. I see that I have made a bill of around 30 pounds a month because I am away from home all day because of work and they make me pay twice as much.. Last month I paid 100 pounds while I only used 30. Can someone help me.. Thank you
+3- Carbon Catcher***
- 1258 replies
If you’ve paid more into your account than your actual bill the excess will just sit as a credit balance. How are you seeing that you only use £30 a month? Have you got a smart meter or does OVO have a correct recent meter reading?
Thank you very much for the reply. I have a smart meter. Every time I pay more than I should and they have not refunded me anything.. I am very disappointed.
+3- Carbon Catcher***
- 1258 replies
You can request a refund on your online account. Or you could just pay what you’ve used and stop the credit building up.
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