Ofgem direct debit review 2026: how to cut energy bills
Understand what Ofgem’s direct debit review means for UK households in 2026—and compare whole-of-market tariffs to reduce your monthly payments without guesswork.
- Learn how suppliers set Direct Debit amounts—and what you can challenge
- See practical steps to lower payments and avoid building up credit
- Compare home energy deals across the market in minutes (not just a panel)
Home energy only. Quotes are personalised based on your details and availability in your area. Switching may involve credit checks and exit fees depending on your current tariff.
Compare home energy tariffs to lower your Direct Debit
The Ofgem direct debit review is focused on fairer, clearer Direct Debit setting—however, the fastest route to lower monthly payments is often reducing your unit rates (price per kWh) and/or your standing charges by switching to a better-value tariff. EnergyPlus is a whole-of-market comparison service, helping UK households find suitable deals across multiple suppliers based on your postcode and usage.
Tip: If your supplier has increased your Direct Debit, you can often reduce the monthly amount by (1) moving to a cheaper tariff and (2) making sure your meter readings/smart data are up to date so the supplier’s forecast matches reality.
What you’ll need (takes 2–3 minutes)
- Your postcode (to check availability)
- Rough annual usage in kWh (from a bill or app). If you don’t know it, we can estimate.
- Your current supplier and tariff name (optional, but helps accuracy)
- Whether you pay by Direct Debit and have a smart meter
Prefer to understand the policy side first? Jump to what the Ofgem review covers or the cut-bills checklist.
What is the Ofgem direct debit review (and why it matters in 2026)?
Ofgem (Great Britain’s energy regulator) has been reviewing how energy suppliers set and adjust Direct Debits to ensure payments are fair, transparent, and based on reasonable forecasts. For households, the big issue is familiar: your supplier raises your Direct Debit “to prevent debt” even when your account is in credit—or before you’ve had a chance to provide accurate meter readings.
In 2026, the practical impact for many customers is likely to be clearer communication, better explanation of how your amount is calculated, and stronger expectations that suppliers respond when a Direct Debit looks out of line with usage. But policy changes don’t automatically guarantee the lowest bill: your tariff still drives what you pay.
EnergyPlus approach: We help you tackle both sides—(1) the Direct Debit amount your supplier requests and (2) the underlying rates that determine your annual energy cost.
Why your energy Direct Debit changes (even when you haven’t used more)
Seasonality & smoothing
Direct Debits are designed to spread higher winter costs across the year. If your supplier thinks winter spend will exceed summer payments, they may increase your monthly amount.
Forecasts based on estimates
If your readings aren’t up to date (or your smart data is missing), suppliers may estimate. A high estimate can push your Direct Debit up even if your real usage is lower.
Price changes & tariff moves
When unit rates or standing charges change—or you’re moved onto a new tariff—your projected annual cost changes, and your Direct Debit is often adjusted accordingly.
Account balance (credit/debt)
Suppliers may raise payments to clear debt, or to build credit ahead of winter. If you’re already in significant credit, you can ask for an explanation and propose a lower amount.
Meter type & billing cadence
Traditional meters with infrequent readings can lead to catch-up bills and sharper Direct Debit changes. Smart meters can help, but only when readings are flowing correctly.
How to cut your energy bills after the Ofgem direct debit review (2026 checklist)
Use the steps below to reduce the cost you pay over the year and bring your Direct Debit into line with your actual usage. If you want personalised figures, compare tariffs here.
- Check your latest readings (or smart meter data). If your bill is estimated, submit readings and wait for an updated statement so the forecast is based on reality.
- Review standing charges and unit rates. Even small differences add up. A lower standing charge can make a big difference for low users; lower unit rates matter most for higher users.
- Look at your account balance. If you’re consistently building credit, ask your supplier to justify the Direct Debit and propose a lower monthly amount. If you’re in debt, agree a plan—but still compare tariffs to stop the debt growing.
- Compare the whole market for a better deal. Don’t assume your current supplier will be cheapest after a tariff ends. Compare by annual cost, not just the monthly Direct Debit.
- Avoid common switching traps. Check exit fees, fix length, and how prices may change. If you have Economy 7, ensure the comparison accounts for day/night usage.
- Reduce usage where it counts. Target high-impact changes: heating schedules, draught-proofing, flow temperature (if you have a boiler), and appliance standby.
Direct Debit reality check: A lower Direct Debit doesn’t always mean lower annual cost—it can also mean you’ll owe more later. The goal is to pay the right amount for your real annual usage on the best available rates.
Direct Debit examples: what “fair” can look like
Suppliers typically calculate a monthly Direct Debit by estimating annual cost (unit rates + standing charges), then adjusting for any existing credit or debt. The examples below are illustrative to help you sense-check changes.
| Scenario | Estimated annual cost | Account balance | Indicative monthly DD | What to do |
|---|---|---|---|---|
| Low use, high standing charge | £1,150 | £0 | ~£96 | Compare tariffs with lower standing charges; check if you’re on the best plan for your pattern. |
| In credit after mild winter | £1,650 | +£220 credit | ~£119 (if credit applied over 12 months) | Ask how the forecast was calculated; request a recalculation using accurate readings and credit. |
| Underpayment / small debt | £2,050 | -£180 debt | ~£186 (annual/12 + debt spread) | Agree a manageable plan, but compare tariffs to reduce the annual cost driving the debt. |
| Estimate too high (no readings) | £2,300 (estimated) | £0 | ~£192 | Submit readings; ask for a revised forecast; then compare on accurate usage. |
A simple way to challenge a high Direct Debit
When contacting your supplier, ask for the numbers they used. You can request:
- The annual usage figure (kWh) they’ve assumed for gas and/or electricity
- The unit rates and standing charges used in their annual cost estimate
- How your current credit/debt balance was factored into the monthly payment
- Whether the calculation is based on actual readings or estimates
Then, if the tariff itself is expensive, switching can reduce the annual cost that underpins your Direct Debit. Compare whole-of-market options to see what’s available at your address.
Common mistakes that keep Direct Debits higher than they need to be
Comparing by monthly payment only
A supplier can set a low Direct Debit that leaves you owing later. Focus on estimated annual cost plus the tariff terms, then set a sensible monthly amount.
Not updating meter readings
Estimated bills can drift over time. Accurate readings keep forecasts realistic and reduce unexpected Direct Debit jumps.
Ignoring tariff end dates
When a fix ends, you may move to a higher default rate. Put a reminder in your calendar and compare before the end date.
Not checking for exit fees
Some fixed deals charge for leaving early. A switch can still be worth it, but factor the fee into your calculation.
Regional and household considerations (UK homes)
Direct Debit amounts can vary not just with usage, but also with regional network costs and how your home is set up. When comparing tariffs, it helps to consider:
Postcode pricing differences
Standing charges and unit rates can differ by region due to distribution costs. That’s why accurate postcode-based comparison matters.
Economy 7 / time-of-use
If you use night storage heating or charge an EV overnight, the day/night split changes what’s “cheap”. Use a comparison that accounts for your usage pattern.
All-electric homes
Without gas, electricity use is higher and unit rate differences have a bigger impact. Consider tariff type, payment method, and whether your heating is efficient.
FAQs: Ofgem direct debit review 2026
Can my supplier increase my Direct Debit without permission?
Suppliers can change the amount they request under the Direct Debit agreement, but they should give notice and provide a reasonable explanation. If the figure doesn’t match your usage or you’re in significant credit, ask for a recalculation based on up-to-date readings and tariff rates.
What’s the difference between my bill and my Direct Debit?
Your bill reflects energy used over a period (plus standing charges). Your Direct Debit is a payment plan designed to cover your annual cost smoothly. If your Direct Debit is too high, you build credit; too low, you build debt.
If I switch, will my Direct Debit definitely go down?
Not always. Switching can reduce your annual cost, which often leads to a lower monthly payment, but the exact Direct Debit also depends on your balance (credit/debt) and your usage forecast. Compare by annual cost first, then set a sensible monthly payment with your new supplier.
Does having a smart meter help with Direct Debit accuracy?
It can, because suppliers can base forecasts on actual consumption. But smart meters aren’t perfect—sometimes readings don’t reach the supplier. If your bills show estimates, submit readings where possible and ask the supplier to fix data issues.
Will the Ofgem review force suppliers to refund credit?
Suppliers already have processes for credit refunds, and you can request a refund where appropriate. Whether a supplier agrees may depend on the season, your forecast usage, and whether you’re likely to need that credit for winter bills. If the credit is persistent and unexplained, ask for a detailed breakdown and consider switching.
Is EnergyPlus independent?
EnergyPlus helps you compare home energy tariffs across the market and supports you through switching. Results depend on availability in your area and the details you provide. Always check tariff terms, prices, and fees before you switch.
Ready to act? Compare whole-of-market tariffs and see whether you can lower your monthly payments.
What households say after reviewing their Direct Debit
“Our Direct Debit kept climbing even though we were in credit. Comparing rates showed we were on an expensive tariff. Switching brought the monthly payments back to something sensible.”
“Submitting updated readings made a bigger difference than we expected. The forecast dropped and so did the Direct Debit—then we compared and found a cheaper fix.”
“We used the checklist to sanity-check the numbers. The key was focusing on annual cost, not just the monthly payment. The switch was straightforward.”
Trust signal: Switching supplier typically doesn’t interrupt your energy supply—your gas and electricity keep flowing. Your new supplier handles the switch and meter readings with the old supplier.
Take control of your Direct Debit in 2026
Use the Ofgem review momentum to check your forecast, compare whole-of-market tariffs, and reduce what you pay over the year.
- Whole-of-market comparison for UK homes
- See estimated annual cost and monthly payments
- Switch with confidence—keep supply uninterrupted
You’ll be asked for your postcode, fuel type, and contact details to generate personalised results.
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