Ofgem Direct Debit changes 2026: should you switch?
If you pay for gas and electricity by Direct Debit, the Ofgem changes expected in 2026 could affect how suppliers set monthly payments, handle credit balances, and communicate changes. Compare whole-of-market tariffs with EnergyPlus to see whether switching could lower your bills or give you fairer Direct Debit terms.
- Check if you’re overpaying and building up unnecessary credit
- Compare fixed vs variable tariffs and payment options in minutes
- Whole-of-market comparison for UK homes (not business)
- Switch with clearer costs, better fit, and fewer surprises
No obligation. Accurate quotes depend on your address and meter details. EnergyPlus is a comparison service for UK homes.
Compare tariffs now (before 2026 changes land)
Direct Debit is the most common way to pay for home energy in the UK, but it can be frustrating when your monthly payment feels too high, your account builds up credit, or suppliers change your amount without explaining why. Ofgem’s planned Direct Debit reforms for 2026 are designed to improve transparency and fairness — but you don’t have to wait to review your deal.
If you’re on a standard variable tariff, recently had a payment review, or you’ve got a large credit balance, switching could make your monthly costs more predictable. Use the form to compare whole-of-market options for your home: fixed deals, variable tariffs, and supplier choices (subject to availability in your area and for your meter type).
Quick self-check: If your account shows “credit” that’s more than one month’s typical bill (or you’ve been in credit for months), it’s worth comparing tariffs and reviewing your Direct Debit level.
What you’ll need (takes 2–3 minutes)
- Your postcode (to find the right network region and available tariffs)
- Rough usage or your latest bill (helpful but not essential)
- Whether you have a smart meter, prepayment meter, or standard credit meter
Get personalised quotes
Fill in your details and we’ll show suitable home energy options. No scripts here — just a simple form.
Already switched recently? You can still compare. Prices move, and some households benefit from a tariff with a different balance of standing charge vs unit rate — especially if your usage has changed.
Note: Ofgem announcements and supplier policy can change. This page explains the likely direction of travel and what to consider for your household. If you need help with an existing supplier dispute, you may also wish to check Ofgem guidance and the Energy Ombudsman process.
What are the Ofgem Direct Debit changes in 2026?
Ofgem has been consulting on reforms aimed at improving how energy suppliers set and manage Direct Debit payments. While final rules and timings can be updated, the 2026 changes are widely expected to focus on making monthly payments fairer, reducing excessive credit build-up, and ensuring customers understand why their Direct Debit amount changes.
Clearer calculations
Stronger expectations on how suppliers calculate monthly Direct Debits — based on realistic consumption estimates, tariff rates, and seasonality — with clearer explanations.
Better credit handling
More focus on preventing households building up large credit balances unnecessarily, and clearer routes for requesting refunds where appropriate.
Improved communication
More consistent notices, easier-to-understand messages, and fewer “surprise” changes to your monthly payment without a proper breakdown.
Important: These reforms are about how Direct Debits are managed — they don’t guarantee lower energy prices. The biggest lever for your bill is still your tariff (unit rates and standing charges) and your usage.
Should you switch because of the 2026 Direct Debit changes?
Switching isn’t only about chasing the lowest headline price. If you’re worried about how your supplier manages Direct Debit — frequent increases, unclear reviews, or persistent credit — it may be worth considering a supplier and tariff that better match your household’s pattern of use.
Switching is often worth it if…
- Your Direct Debit keeps rising but your usage hasn’t
- You’ve built up a large credit balance for months
- Your supplier’s explanation is vague or inconsistent
- You’re on an SVT and haven’t compared recently
- Your fixed deal has ended (or is ending within ~60 days)
- You’ve moved home, added an EV, heat pump, or changed occupancy
You may want to pause if…
- You’re in debt and need to agree a repayment plan first
- You’re on a fixed tariff with a high exit fee (check your terms)
- You’re mid-way through a supplier complaint you want resolved
- You have a complex meter setup and need to confirm eligibility
Practical approach: Compare first. If the savings are meaningful (or the tariff terms are a better fit), then check exit fees and switching timelines. You can often switch without disruption to supply.
Direct Debit: how to check if your payment is fair
Even before any new rules come into force, you can sanity-check your Direct Debit amount. Suppliers typically spread expected annual cost across the year (with higher usage in winter), but the calculation should be explainable and broadly aligned with your actual consumption.
| Check | What to look for | What to do next |
|---|---|---|
| Credit balance | Consistent credit that keeps rising month after month | Ask for a review and a clear breakdown; consider switching if you’re also on an uncompetitive tariff |
| Usage estimate | Estimated kWh much higher than your actual readings/smart data | Submit a reading (or check smart meter is sending data); compare tariffs based on realistic usage |
| Tariff change | Rates changed and your payment jumped without detail | Request a breakdown; run a comparison to see if a different tariff improves predictability |
| Standing charge vs unit rate | High standing charges can hurt low-usage homes | Compare options with a better balance for your usage profile |
| Payment review frequency | Multiple changes in a short time, unclear rationale | Consider suppliers with clearer billing and support; switch if service is a persistent issue |
If you want to switch: a simple 5-step plan
- Collect basics: postcode, meter type, and either usage (kWh) or a recent bill.
- Compare whole-of-market: focus on total annual cost, not just the monthly Direct Debit.
- Check fees and dates: look for exit fees and when your current fix ends.
- Pick payment preference: Direct Debit vs other options if available (some tariffs are DD-only).
- Keep records: take opening/closing readings and save confirmation emails for peace of mind.
Good to know: In most cases, switching supplier does not interrupt your gas/electricity supply. Your meters stay the same; only the company that bills you changes.
How Direct Debit changes could affect different households
Not every household experiences Direct Debit in the same way. Where you live, your meter type, and your usage pattern can all influence the best tariff and the “right” monthly payment.
Low-usage homes
If you use less energy (e.g., smaller property, single occupant), standing charges can matter a lot. Comparing suppliers can sometimes produce better value even when unit rates look similar.
High winter heating demand
If your usage spikes in winter (gas heating, poor insulation), Direct Debits are often set higher to avoid debt. A tariff review plus insulation/usage tweaks can make monthly payments feel more predictable.
Smart meter households
More accurate data can mean fairer Direct Debit reviews. If your smart meter isn’t sending readings, estimates can creep in and distort your monthly payment.
Common Direct Debit mistakes (and how to avoid them)
Mistake: judging a tariff by the monthly Direct Debit alone
Monthly payments can be set to smooth seasonal costs. Two suppliers may charge the same annual cost but request different monthly amounts.
Do instead: compare annual cost using unit rate + standing charge + your estimated usage.
Mistake: leaving estimated readings unchecked
If your supplier estimates too high, it can inflate your Direct Debit and build up credit.
Do instead: submit readings regularly (or confirm smart meter data is being received).
Mistake: ignoring standing charges
A low unit rate can be offset by a higher standing charge — especially for smaller households.
Do instead: compare tariffs with your real usage to see true total cost.
Mistake: missing the end of a fixed deal
When your fix ends, you can roll onto a more expensive standard variable tariff.
Do instead: set a reminder and compare within the run-up to expiry.
FAQs: Ofgem Direct Debit changes 2026
Will Ofgem’s 2026 changes lower my bill?
Not automatically. The reforms are expected to improve how Direct Debits are calculated and explained. Your bill is still mainly driven by your tariff rates and how much energy you use. Comparing tariffs is the most direct way to potentially reduce costs.
Can my supplier change my Direct Debit whenever they want?
Suppliers can review and adjust Direct Debits, but they should provide a clear reason and base it on reasonable forecasts and account position. If the explanation doesn’t add up, you can request a review and consider switching.
What if I’m in credit — should I ask for a refund?
If you’re significantly in credit and your usage doesn’t justify it, you can ask your supplier for a refund and/or a Direct Debit reduction. It’s also a good moment to compare tariffs, because credit build-up can be a sign your monthly payment is set too high or your tariff is no longer suitable.
Will switching affect my smart meter?
In most cases, no. Your meter stays in place and your supply continues. Some smart features can depend on supplier systems, but billing and readings generally continue as normal.
Is Direct Debit always the cheapest way to pay?
Direct Debit tariffs are often competitively priced, but not always. Some suppliers price similarly across payment methods; others offer Direct Debit-only deals. Comparing whole-of-market options is the best way to see what’s available for your home.
How long does switching take?
Many switches complete in a few working days, but timelines can vary depending on your meter type, supplier processes, and any data issues. You’ll normally get confirmations and key dates during the switch.
Why compare with EnergyPlus?
Whole-of-market focus
We compare a wide range of UK home energy options so you can make a decision based on cost and fit — not just brand familiarity.
Made for UK households
This service is designed for domestic customers across England, Scotland and Wales (availability depends on supplier coverage and meter type).
Clear, practical guidance
We focus on what actually matters: total annual cost, standing charges, unit rates, and whether the tariff suits how you use energy.
What people like about switching
“My Direct Debit finally matched my usage.”
“I was building up credit every month. Comparing tariffs helped me choose a deal that made sense for our household.”
Domestic customer feedback (illustrative)
“The annual cost view made it clearer.”
“I stopped focusing on the monthly amount and compared total cost and charges properly.”
Domestic customer feedback (illustrative)
“Switching was smoother than I expected.”
“No disruption to supply, and the new tariff terms were easier to understand.”
Domestic customer feedback (illustrative)
Ready to check if you should switch?
Don’t wait for policy changes to improve your situation. Compare home energy tariffs across the market and find a deal that suits your household and your Direct Debit preferences.
- Compare whole-of-market home energy options
- See potential annual cost differences, not just monthly payments
- Switching is usually straightforward with no supply interruption
Start your comparison
Prefer to come back later? Save this page and compare when you have a recent bill to hand.
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