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:
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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
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take away your current balance, factoring in any credit or debt
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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:
Hi
Welcome to the OVO Online Community.
The direct debit is an average for the year, so you’d expect to pay more during the summer months so that the extra credit carries you through the winter months. Here are some great guides we have which give more information about this topic:
If you still think you’re paying too much, you can reduce your direct debit to the recommended amount on your Online Account or request a refund.
You can request a refund on your online account. Or you could just pay what you’ve used and stop the credit building up.
If you’re on the Simpler Variable tariff it’s worth bearing in mind your prices will be increasing. Find out more about the Energy Price Guarantee here.
Hope this helps.
I’m £871 in credit, Ovo want to increase my DD from £350 to £472 per month.
I have done a rough calculation and it shows we are unlikely to use all the credit balance up until 1st April next year.
We have recently reduced our useage by being more careful and are one less person in the house since mid September.
Just managed to have a conversation on whatsapp with a real human being and I’m now on the exemption from contact list for 3 months. No more hassle to increase for the next 3 months. Worth a try if anyone is struggling to see the justification for the increases.
I’m £871 in credit, Ovo want to increase my DD from £350 to £472 per month.
I have done a rough calculation and it shows we are unlikely to use all the credit balance up until 1st April next year.
We have recently reduced our useage by being more careful and are one less person in the house since mid September.
Just managed to have a conversation on whatsapp with a real human being and I’m now on the exemption from contact list for 3 months. No more hassle to increase for the next 3 months. Worth a try if anyone is struggling to see the justification for the increases.
Appreciate this as I’m £633 in credit (that’s before they even amend the price to match the govt cap) been unable to speak to anyone and waiting for a reply from a human on WhatsApp.. several hours and counting.
+3- Carbon Catcher***
- 1258 replies
Do keep sending in meter readings (unless you have a smart meter of course) especially if you’ve made changes to your usual use pattern, then the OVO system won’t estimate.
The reply from OVO is unbelievable. Basically saying that they are ignoring the Govt Price cap - which is there to benefit everyone - and their promise on their web page/app that they’d apply the cap to all accounts and no need to contact them is incorrect.
I don’t think that have a strategy or a process at all and are reliant on customers contacting them.
I now need to call them as they closed the WhatsApp after I didn’t reply after 5 mins.
“I can do this for you how much would you like refunding, also in regard to your tariff because you had agreed a fixed tariff before the price cap this is why the prices are higher, we can cancel your fixed tariff and put you onto the variable tariff if you would prefer”
So a wee update after calling them.
Refund - sorted
Energy cap - girl I spoke to was unable to make the changes to my account to ensure I benefit from the price cap. It’s been passed to their account team but there’s no timescale for them to work towards but she did say it would be backdated.
I’ll diarise for 2 weeks and call them back as don’t have much confidence that anything will change.
+3- Carbon Catcher***
- 1258 replies
You said previously that your smart meter showed a rate of 54p. Is that the rate you see on your Plan viewed on your online account? If it is you will be moved to the Government rate automatically. You don’t need to contact OVO, just wait. There are thousands of customers and they can’t all be done at the same time !!!
You said previously that your smart meter showed a rate of 54p. Is that the rate you see on your Plan viewed on your online account? If it is you will be moved to the Government rate automatically. You don’t need to contact OVO, just wait. There are thousands of customers and they can’t all be done at the same time !!!
It is the rate that I have on my plan via my online account.
The person I spoke to was quite clear, and it backed up the WhatsApp message, that there would be no automatic change to a lower tariff.
Disagree with your last point as there’s such a thing as identification and bulk batch processing, but let’s not go there.
I urge anyone in the same position to take matters into their own hands and speak to OVO.
+1Under the EPG your fixed electricity price should come down by 17p (17.85p VAT incl) to a lower figure. That is law. The average (but who is average) price under the EPG is 34p per unit but it is regional and ranges between 33p and 36p (all pre VAT). OVO will probably make arrangements to take your unit price down to the EPG floor (same as the variable rate unit prices) but standing charges are not covered by the EPG and whether they are retained or changed seems up for grabs.
What region are you in.? Your advisor gave you duff information and I would make a formal complaint. They can listen back on the call and apologise. Meanwhile
+1- Plan Zero Hero
- 7890 replies
As is your own
Carbon Catcher doesn’t come with any special permissions, but your name now stands out in the same way that ours do. Keep this up and more good things will happen!
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