What is the Ofgem Direct Debit Review 2026?

The Ofgem Direct Debit Review 2026 is a set of proposed and/or updated rules aimed at making energy suppliers’ Direct Debit setting and ongoing adjustments fairer and more transparent. It focuses on reducing overcharging, improving how credit balances are handled and helping customers better understand (and challenge) their monthly payment amount.

Can the Ofgem Direct Debit Review 2026 help me cut my energy Direct Debit payments?

It may. The review is designed to limit unnecessary build-up of large credit balances and improve how suppliers calculate payments. If your Direct Debit is set higher than needed for your expected annual usage, you may be able to request a recalculation and potentially reduce your monthly amount—especially if you have built up credit.

Why do energy suppliers increase Direct Debits even when I’m in credit?

Suppliers often set Direct Debits to cover predicted annual consumption and to prepare for higher winter usage. If your usage has fallen, your tariff has changed, or your account already has a large credit balance, your payment may be higher than necessary. Providing up-to-date meter readings and asking for a reassessment can help align payments with actual costs.

How do I check if my Direct Debit is too high?

Compare your current Direct Debit to your expected annual cost based on recent usage. Check your latest bill, unit rates and standing charges, and whether your account is in credit. If you have smart meter data or recent meter readings, use them to confirm your consumption. If your Direct Debit would create a growing credit balance, it may be set too high.

What information should I gather before asking my supplier to lower my Direct Debit?

Have your latest meter readings (or smart meter data), your current tariff details (unit rates and standing charges), your account balance (credit/debit) and recent bills. Also note any household changes (working from home, new appliances, fewer occupants) that affect usage. This makes it easier to justify a realistic monthly payment.

If I reduce my Direct Debit, will I pay more later?

Not necessarily. If the payment is reduced to better match your actual usage, it should simply prevent overpaying in the first place. However, if your payment is reduced too far, you could build up a debit balance—especially over winter—so it’s best to base any change on accurate usage and keep readings up to date.

Can I get a refund of my energy credit balance?

Often, yes—many suppliers allow credit refunds provided your account is not at risk of falling into debt and your bills are up to date. Policies vary, but having recent meter readings and a stable payment history typically helps. If you’re switching supplier, credit should also be returned once the final bill is produced.

What should I do if my supplier refuses to lower my Direct Debit?

Ask for a clear explanation of how the payment was calculated and provide updated meter readings. Request a formal review and keep records of all communications. If you believe the amount is unreasonable, you can follow the supplier’s complaints process. You may also consider switching to a better-value tariff or supplier if available.

Is switching energy supplier a good way to cut my monthly payments in 2026?

Switching can reduce costs if you move to a lower-priced tariff that suits your usage. Your Direct Debit is tied to your tariff and consumption, so a cheaper unit rate and standing charge often means a lower monthly payment. Always compare total annual cost, not just the advertised monthly figure. You can compare options at https://www.energyplus.co.uk/.

How can I reduce energy usage so my Direct Debit comes down?

Lowering consumption can reduce your annual cost and support a lower Direct Debit. Common high-impact steps include improving heating controls, reducing thermostat settings, draught-proofing, using efficient hot water habits, and tackling standby usage. If you have a smart meter, use the data to identify peaks and adjust routines.

Ofgem Direct Debit Review 2026: cut my energy payments

Find out what the Ofgem direct debit review means for your household, how to challenge an unfair monthly amount, and how EnergyPlus can help you compare whole-of-market deals to reduce your ongoing energy spend.

Understand how suppliers set Direct Debits and what should change in 2026
Check if you’re overpaying due to credit build-up, usage estimates or debt recovery
Compare whole-of-market tariffs and switch in minutes with one simple form

Check my savings & cut payments How the review affects Direct Debits

For home energy customers in Great Britain. We’re a comparison service and check across the market. Estimated savings depend on your usage, tariff availability and eligibility.

Compare whole-of-market deals to lower your monthly payments

If your supplier’s monthly Direct Debit feels too high, the fastest way to bring it back in line is to check your current tariff against today’s market. Even small unit rate differences can add up over a year, especially if your usage has increased or your fixed deal has ended.

EnergyPlus compares home energy tariffs across the market (not just a shortlist). Tell us a few details and we’ll show suitable options so you can switch or confirm you’re already on a competitive deal.

Tip: If you’re building up a large credit balance, you may be paying more each month than you need. Compare tariffs and review your Direct Debit amount with your supplier.

Already happy with your tariff? You can still cut your monthly Direct Debit by correcting usage estimates, aligning payments to your annual costs, and requesting a credit refund if you’ve overpaid. See the checklist.

What is the Ofgem direct debit review (and why it matters in 2026)?

Ofgem’s work on Direct Debits is designed to improve how suppliers set and adjust monthly payments, so customers aren’t left paying more than necessary or facing unexpected spikes. In practice, households most commonly feel issues when:

Your usage is estimated

Estimated readings can inflate projected annual costs. Smart meters and regular reads help keep Direct Debits realistic.

Credit balances build up

If you’re consistently in credit, you may be paying too much each month. You can ask for an explanation, a reduction, or a refund (subject to supplier checks).

Debt recovery increases payments

If there’s an arrears plan, the supplier may set a higher Direct Debit. You can still ensure the plan is fair and based on accurate usage.

This page focuses on practical actions you can take in 2026: how to check whether your payment is justified, how to ask the right questions, and how to reduce costs by switching to a better tariff where available.

Important: Ofgem sets rules and standards, but your supplier sets your specific Direct Debit based on your account. If you think it’s wrong, ask for the calculation and provide up-to-date readings.

Practical ways to cut your Direct Debit in 2026

Your Direct Debit isn’t a price cap—it’s a payment plan. Cutting it responsibly means lowering your underlying costs, improving accuracy, or both.

1) Switch to a cheaper tariff

If you’re on a standard variable tariff or an out-of-date fix, comparing whole-of-market deals can reduce unit rates and standing charges—lowering what you pay over the year.

Compare home tariffs

2) Fix inaccurate usage assumptions

Submit up-to-date meter readings (or ensure your smart meter is communicating). If the supplier’s forecast is too high, ask them to recalculate your payment amount.

3) Challenge oversized credit buffers

Many households build up credit over summer and draw it down in winter. The issue is when the credit balance stays high year-round. Ask for the logic and whether a lower buffer is appropriate.

4) Align payments with annual cost

A fair Direct Debit should broadly match your projected annual bill divided across 12 months—plus any agreed debt repayment. If the maths doesn’t match, query it.

5) Reduce consumption without discomfort

Small habit changes (thermostat optimisation, draught-proofing, flow temperature tweaks) can lower kWh usage and bring your monthly amount down over time.

6) Check support you may be missing

If you’re eligible for schemes or support (for example, through your supplier), it can help manage payments. Always check directly with your supplier and relevant official sources.

How suppliers typically calculate your monthly Direct Debit

While each supplier has their own process, most Direct Debit amounts are built from the same building blocks. Understanding them helps you spot when a 2026 review conversation should be about accuracy rather than just the monthly figure.

What it’s based on	What can go wrong	What to do
Projected annual kWh usage	Old estimates, missing reads, home improvements not reflected	Submit readings, check smart meter status, ask for recalculation
Your tariff (unit rates + standing charges)	You moved onto a higher SVT after a fix ended	Compare whole-of-market deals and consider switching
Seasonality / smoothing across 12 months	Large summer credit that never reduces	Ask what credit buffer is included and why
Current balance (debit or credit)	Credit not reflected; debit repaid too aggressively	Request balance explanation and repayment schedule
Planned debt repayment (if applicable)	Affordability not considered; unclear timeframe	Ask for options, timeframe, and to review affordability

A simple way to sense-check the monthly figure

Sense-check: (Estimated annual cost ÷ 12) ± balance adjustment + any agreed debt repayment.

If your supplier can’t explain how they got your number—or they’re using old estimates—ask them to review it. Then use EnergyPlus comparison to see if a different tariff could reduce the annual cost in the first place.

2026 checklist: how to ask for a Direct Debit reduction (without creating problems later)

Use this quick checklist before you contact your supplier. It helps you avoid a short-term reduction that leads to a catch-up increase later.

Get accurate readings. Submit current electricity/gas readings (or confirm your smart meter is sending them). If you have Economy 7 or other multi-rate, make sure each register is correct.
Check your account balance. Note whether you’re in credit or debit and by how much.
Ask for the calculation. Request the supplier’s projected annual usage (kWh), projected annual cost, and any credit buffer or debt repayment included.
Compare your tariff. If you’re paying higher unit rates than the market, a lower Direct Debit won’t fix the underlying issue. Compare options first.
Request a realistic payment amount. Ask the supplier to set your Direct Debit to match your forecast annual cost across the year, adjusted for your balance.
Re-check after a bill or statement. Once a new statement is produced, confirm your Direct Debit still makes sense, particularly after winter usage changes.

Common mistake: reducing payments while on an expensive tariff

If your tariff is uncompetitive, a lower Direct Debit can simply delay the problem. Switching to a better deal can make your monthly payment sustainably lower.

Common mistake: relying on estimated reads

Estimates are a frequent reason for Direct Debit spikes. Accurate reads reduce the chance of a sudden adjustment later.

Regional considerations: why your standing charge may differ

Energy prices vary by region in Great Britain, particularly the standing charge and sometimes unit rates. That’s why the same supplier tariff can lead to different monthly payments depending on where you live.

When you use EnergyPlus, we use your postcode to show tariffs and pricing relevant to your region—so the comparisons are meaningful for your home.

If your Direct Debit has changed but your tariff hasn’t, it can still be due to updated projections, balance changes, or a reassessment of your annual usage—not just regional pricing.

Ofgem direct debit review 2026: FAQs

Can I ask my supplier to reduce my Direct Debit?

Yes. Ask for a breakdown of how it was calculated (annual usage forecast, tariff rates, balance, and any repayment plan). Provide up-to-date readings and request a recalculation based on accurate information.

Does the Ofgem review mean everyone’s Direct Debit will fall in 2026?

Not necessarily. The review is about fairness, transparency and setting payments appropriately. Your amount depends on your tariff, usage, account balance and any agreed repayment plan.

I’m in credit. Can I get a refund?

Often you can request a refund if you have enough credit and your account is up to date, but suppliers may keep a reasonable buffer for seasonal use. If you have a large or persistent credit, ask for the rationale and whether a refund and Direct Debit reduction are appropriate.

Will switching supplier change my Direct Debit straight away?

Your new supplier will set a payment amount based on your expected annual cost and payment preferences. If you choose a cheaper tariff, your projected annual cost may be lower, which can reduce your monthly payments.

What if I have a prepayment meter?

This guide is primarily about Direct Debit accounts. If you’re on prepay, you won’t have a Direct Debit in the same way, but you can still compare tariffs and check whether you’re eligible for alternatives depending on your meter type and circumstances.

Is EnergyPlus a supplier?

No—EnergyPlus is a comparison service. We help you compare home energy options across the market and take the next step with a supplier if you choose to switch.

Why households use EnergyPlus

“I didn’t realise my Direct Debit was based on old estimates. After updating readings and switching, the monthly amount finally made sense.”

Homeowner, West Midlands

“The comparison was quick and clear. I could see standing charges and unit rates, not just a headline saving.”

Tenant, Greater Manchester

“Helpful to check the whole market in one place. I used the info to ask my supplier to recalculate my Direct Debit too.”

Flat owner, South East

Trust signals that matter

Whole-of-market approach for home energy comparisons
Postcode-based pricing to reflect regional differences
Clear next steps—compare first, then decide

Ready to cut your energy payments?

Compare whole-of-market tariffs using your postcode and details. If there’s a better deal for your home, we’ll help you find it—then you can switch with confidence.

Get my quotes Use the Direct Debit checklist

Home energy only. Switching timescales and acceptance depend on suppliers and your circumstances.

Want to reduce your Direct Debit even if you don’t switch?

Update your readings, ask for the calculation, and challenge oversized buffers. Then compare tariffs to ensure your annual cost is as low as possible.

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Updated on 24 Feb 2026