How do Direct Debits work?
A Direct Debit is an automatic monthly payment set up with your bank or building society. It means you can choose which day you want the payment to go out each month, and your bank will sort the rest.
Once a Direct Debit is set up, you don’t need to do anything else in order to make your payments.
It’s often the best way to make regular payments, such as your energy bill. This is because it should spread the cost of your energy over time.
Why paying by Direct Debit can be a useful way to pay
Direct Debit is usually the most useful way to pay for your energy because:
you get a cheaper rate if you’re on our variable Simpler Energy plan
you don’t have to remember to make payments each month – it’s all done automatically
it can help with budgeting, as you’ll usually pay the same every month unless your Direct Debit changes
it spreads your energy costs evenly over time – which means you’re less likely to pay more in winter, as credit should have built up over the summer months
How we work out your Direct Debit amount
When we work out your monthly Direct Debit amount, we aim to help you avoid building up a debt balance long term. How we do this:
First, we look at your home’s 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.
Then we factor in any credit in your energy account or if there’s a debt balance
Finally, we divide the result by the number of payments left until 31 March 2026, which gives your monthly amount.
The aim is, by that date, you won't owe us anything and we won't owe you anything – making it easier for you to manage your energy costs over time.
Your Direct Debit is checked regularly to make sure your energy account balance is on track.
Why your Direct Debit payment might be different to the amount on your bill
Your energy use can vary from month to month, which means your actual bill may differ from your Direct Debit payment.
To make sure you're paying the right amount, your energy costs are spread evenly, to cover your total energy use until 31 March 2026. This should help you avoid building up a debt balance long term.
Why meter readings are important
You can make sure your Direct Debit payment stays at the right amount by giving us regular meter readings – once a month is best. Then it will be in line with the energy your home is actually using, and you won’t be paying too much or not enough.
How we work out your Direct Debit payments when you join us
If you’re new to OVO, we predict your Direct Debit amount to cover your expected energy use over the next 12 months. We base the prediction on your past year’s energy use, if you know it.
If you don’t, that’s ok. Instead, we’ll ask you about your property and how many people live there. Then we’ll base it on the average energy use for your type of household.
After 1 month, we check in to make sure the amount you’re paying is right for your home’s actual energy use – if we have a meter reading from you. Your Direct Debit amount might then need to go up or down.
How often we check you’re paying the right amount
We aim to review your Direct Debit regularly to make sure you’re paying the right amount for the energy your home is using.
We let you know if your Direct Debit amount needs to change to keep your balance on track long term.
When your payment amount might change
Your payments might need to go up or down if something changes, such as:
your energy use goes up or down
the price of energy goes up or down – if you’re on a standard variable tariff
you change which energy plan you’re on
you missed a payment or recently requested a refund
you’ve chosen an add-on, such as Greener Energy or OVO Foundation
If your Direct Debit is too high or too low, then we’ll let you know we’re going to have to change the amount.
How to get financial support
If you’re worried about your Direct Debit payments changing or you can’t afford them, please speak to our team. We can make sure you get financial support that’s tailored to you and your situation. There are many options, and support is available for anyone who needs it. Find out more using our online tool or talk to our team.
If your energy balance is in credit
It’s normal for a credit balance to build up in your energy account over summer, when energy use is usually lower. Then this credit can help pay for your energy in winter, when most homes use more. The idea is it helps you spread your energy costs over time.
Even if your energy account is in credit, sometimes your Direct Debit payments still need to increase.
This could be the case if we’ve worked out that your OVO account is likely to have a debt balance long term – based on how much energy your home is predicted to use.
Prefer to take your credit out of your OVO account? You’re free to request a credit refund at any time, in line with our refund policy – it’s completely your decision.
Useful to know: it's important you have all the info, then you can decide what’s best for you.
If you request a refund online, sometimes we need to confirm this over the phone to make sure you have the details of how it’ll affect your energy account.
Getting a refund might mean your Direct Debit payments increase, once your account has less credit in it.
How to apply for a credit refund
There are a few things that need checking before we can issue a refund:
You need to have enough credit in your energy account to cover one month’s Direct Debit payment.
You need to have had your energy account with us for at least 90 days.
We need to have received at least 2 Direct Debit payments from the bank account we're refunding to.
You can’t have any other refund requests pending.
You need to have sent a meter reading for both electricity and gas (if you have both) in the last 28 days. If you have a smart meter, you shouldn’t need to send readings, as your smart meter should do this for you.
The minimum credit refund you can request is £5.
If all the above apply to your energy account, you can request a refund through the Bills section of your online account.
You can also call us on 0330 303 5063, Monday to Friday, 8am to 6pm.
If your balance goes below zero
If your balance goes below zero, this means your account isn’t in credit. However, this doesn’t necessarily mean your monthly payments need to change – we’ll let you know if it does.
If you’re struggling to pay your bills, financial support is available and we’re here to help. Use our payment support tool online or get in touch with our team. We can make sure you get help that’s tailored to you and your situation.
Setting up or changing a Direct Debit
You can set up your Direct Debit in your online OVO account. You can change the amount you’re paying and the date there too. Log in and follow these steps:
Go to Home
Select Set up your Direct Debit
Choose which day you’d like us to collect your payment each month. This can be any date from the 1st to the 28th
Enter your Direct Debit amount. You can use our Direct Debit calculator to get an accurate prediction of what you should pay each month
Put in your details, including your full name, sort code and bank account number
Select Next
Check the details you’ve entered are correct
Select Confirm payments
We’ll send you an email within 3 working days to let you know it’s all set up.
Find out how to set up or change a Direct Debit in the app.
Ask the OVO Forum
Can’t find an answer? Try asking our helpful OVO community.