What is Ofgem’s Direct Debit Review 2026?

Ofgem’s Direct Debit Review 2026 is a review of how energy suppliers set and manage Direct Debit payments. The aim is to make payments fairer, improve transparency, and reduce the risk of customers building up large credit balances or unexpected debt. If your payments are changing, ask your supplier how they calculated your monthly amount and what assumptions they used for usage and prices.

Can Ofgem force suppliers to lower my Direct Debit?

Ofgem sets rules and expectations for suppliers, but your monthly Direct Debit is usually based on your estimated annual consumption, current tariff rates, and any debit/credit on your account. You can often reduce your Direct Debit by providing up-to-date meter readings (or ensuring your smart meter is working), checking your annual usage estimate, and reviewing your tariff options.

Why has my energy Direct Debit increased even if I’m using less energy?

Direct Debits can rise if unit rates or standing charges increase, if your supplier’s usage estimate is too high, if you have an outstanding balance, or if your supplier is rebuilding a seasonal credit buffer for winter. Submitting regular readings and requesting a reassessment based on actual usage can help ensure your payment reflects what you really use.

How do I check if my Direct Debit amount is fair?

Compare your monthly Direct Debit against: (1) your annual kWh usage (from bills or your online account), (2) your current unit rate and standing charge, and (3) your account balance (credit or debit). If the estimate doesn’t match your recent usage, ask for a recalculation using current readings and confirm whether the supplier is holding extra credit (and why).

What’s the best way to pay less on Direct Debit?

To pay less overall, focus on lowering your annual cost rather than only the monthly amount: review your tariff, reduce consumption where possible, and ensure billing is accurate. If you’re paying too much each month, submit meter readings, check the supplier’s annual consumption estimate, and request a Direct Debit review.

Will switching supplier reduce my monthly payments?

Switching can reduce your monthly payments if you move to a cheaper tariff or a tariff that better matches your usage. Before switching, confirm your current annual kWh usage and compare total annual costs (unit rates + standing charges), not just the headline monthly Direct Debit. You can compare energy options with Energy Plus at https://www.energyplus.co.uk/.

Can I ask my supplier to refund credit on my energy account?

If you have a genuine credit balance, you can usually request a refund, especially if your account is up to date and your Direct Debit is set correctly. Suppliers may check for upcoming seasonal usage before returning credit. If you think your credit is excessive, ask for a refund and a recalculation of your Direct Debit based on current readings.

How can I stop estimated bills affecting my Direct Debit?

Estimated bills can push Direct Debits up or down incorrectly. Submit regular meter readings, make sure your smart meter is communicating, and check that your supplier has the correct meter details. Accurate readings help ensure your Direct Debit is based on real consumption, improving both billing accuracy and payment predictability.

What should I do if I think my Direct Debit is unaffordable?

Contact your supplier as soon as possible and ask about a payment plan, reassessment of your Direct Debit using updated readings, and any support you may be eligible for. You can also review whether switching tariff or supplier could lower your costs. For help comparing options, visit https://www.energyplus.co.uk/.

Does paying by Direct Debit always cost less than other payment methods?

Some tariffs price Direct Debit lower than pay-on-receipt-of-bill or prepayment, but it depends on the supplier and tariff. The key is comparing the full tariff cost and terms. If you prefer more control, ask about variable Direct Debit or paying on receipt—then compare the total annual cost to see what’s best for you.

Ofgem Direct Debit Review 2026: How to Pay Less

Understand what the Ofgem direct debit review means for your household bills in 2026 — and use it to cut your monthly payments by comparing whole-of-market energy tariffs with EnergyPlus.

Check if your current direct debit is higher than it needs to be
Compare whole-of-market deals (not tied to one supplier)
Reduce overpaying and avoid bill shocks with smarter payment plans

Compare energy & lower my direct debit Read what the review changes

Home energy only. Switching is optional. We’ll use your details to provide quotes and contact you about your comparison.

Compare whole-of-market tariffs and reduce your monthly payment

The Ofgem direct debit review is designed to improve how energy suppliers set and explain monthly payments — especially where customers build up large credit balances. If your direct debit feels too high, it’s a signal to review your tariff, your usage assumptions, and the payment plan your supplier has chosen.

EnergyPlus helps you compare home energy deals across the whole market. If a better tariff is available, switching can be one of the fastest ways to lower what you pay — without changing how you use energy.

Tip: If you’ve built up a lot of credit, you may be able to request a direct debit reduction or a refund (where appropriate) — but it’s best to check if your tariff is competitive first.

What you’ll need (takes ~2 minutes)

Your postcode (to match regional pricing and network charges)
Whether you have gas, electricity, or both
Optional: a recent bill or app estimate (helps match usage more accurately)

Get whole-of-market quotes

Fill in the form and we’ll help you compare tariffs that could reduce your direct debit in 2026.

Already in credit? If your balance is consistently high, you can ask your supplier to review your direct debit — but check your tariff first to avoid overpaying on a higher unit rate.

Why the Ofgem direct debit review matters for your 2026 bills

Fairer, clearer payments

Ofgem’s focus is on how suppliers set direct debits, explain changes, and manage credit so customers can understand what they’re paying for.

Less risk of persistent overpaying

If your direct debit is routinely higher than your usage requires, you may be able to request a review and avoid building up unnecessary credit.

A good time to switch

Even with better direct debit practices, the biggest lever is often the tariff itself. Whole-of-market comparison helps you find lower unit rates or better structures.

What is the Ofgem direct debit review (and what could change in 2026)?

The Ofgem direct debit review looks at how energy suppliers calculate and adjust monthly direct debit amounts for households. The aim is to improve outcomes for consumers — particularly around transparency, accuracy of estimates, and treatment of customer credit balances.

While suppliers may implement changes differently, the direction of travel is clear: direct debit amounts should be easier to understand, more closely aligned to expected usage, and adjusted in a way that avoids customers being kept in large credit unnecessarily.

Important: Energy prices and policies can change. This guide explains practical ways to pay less and how to respond if your supplier raises your direct debit. For personalised options, compare tariffs using the form above.

Direct debit vs. unit rate: don’t confuse the two

Your direct debit is the payment method and monthly amount your supplier collects. Your unit rate (and standing charge) determine the actual cost of energy you use. A supplier can lower your direct debit while you’re still on an expensive tariff — or raise your direct debit even if your tariff is competitive, if their usage estimate is high.

What you can change	What it affects	Fastest route to paying less
Tariff (unit rates & standing charge)	Your underlying cost per kWh and daily standing charge	Compare whole-of-market deals and switch if cheaper
Direct debit amount	Cashflow: spreads costs over the year; may build credit/debt	Ask for a review with evidence (meter reads, usage)
Usage assumptions	Estimates driving your bill projections	Submit regular readings or ensure smart data is correct

If your goal is lower monthly payments, you’ll usually get the best result by combining two actions: (1) confirm your usage/reads are accurate, and (2) check whether a cheaper tariff is available.

Why your supplier might increase your direct debit (even if you’re careful)

Seasonal smoothing

Direct debits often spread higher winter costs across 12 months. If your supplier expects a cold winter or higher usage, they may raise the monthly amount.

Out-of-date estimates

Estimated readings, missing smart meter data, or changes in household patterns can lead to inflated projections.

Standing charges & unit rates

If your tariff costs more per kWh (or has higher standing charges), your supplier may raise your direct debit to keep you out of debt.

Recovering past underpayment

If you previously underpaid, suppliers may set a higher amount to clear a balance while still covering ongoing usage.

How to pay less after the Ofgem direct debit review (practical plan)

If you want to reduce your monthly payment in 2026, use this order of operations. It helps you avoid the common trap of only lowering the direct debit — while still paying too much overall.

Check your tariff first. If you’re on a poor-value deal, a lower direct debit won’t fix the root cause. Use the comparison form to see whole-of-market options.
Confirm your readings and usage. Submit readings (or confirm smart meter data is updating). Incorrect estimates often drive unnecessary direct debit increases.
Review your balance. If you’re consistently in credit, consider requesting a review. If you’re in debt, ask for a realistic plan that clears it without overstretching you.
Ask for the calculation. Request a breakdown: annual usage assumption, unit rates used, standing charge, and any debt recovery built into the monthly amount.
Set a reminder to re-check. Reassess after major changes (new baby, working from home, EV, heat pump) or price changes.

Quick win: If you haven’t compared in the last 12 months, it’s worth checking the whole market. Even small unit-rate differences can materially change your annual cost — and the monthly direct debit that follows.

Compare now Use the checklist

Direct debit review checklist (what to look at before you accept an increase)

Use this checklist to decide whether a change is reasonable — and what evidence to gather if you want your supplier to reassess.

Check	Why it matters	What you can do
Are your meter readings accurate?	Bad readings create inflated annual usage forecasts	Submit a reading / confirm smart meter is sending data
Do you have a large credit balance?	May indicate you’re paying more than needed each month	Request a direct debit review; ask about refund options where applicable
Has your tariff ended / moved to a pricier rate?	Higher unit rates increase annual cost and monthly payments	Compare whole-of-market tariffs and switch if better
Is debt recovery included?	Your monthly amount can include a catch-up element	Ask for a breakdown and a manageable repayment plan
Are you paying for the right fuel setup?	Economy 7 / smart tariffs / payment methods affect costs	Check if you’re on the right meter/tariff for your lifestyle

Common mistake: reducing your direct debit without correcting usage assumptions can lead to a surprise balance later. Aim for accuracy first, then optimise the tariff.

UK-specific factors that influence direct debits (and how to respond)

Regional price differences

Electricity distribution regions and gas network costs vary across the UK, so the same tariff name can still lead to different annual costs by postcode.

Payment method and fees

Some tariffs price differently depending on whether you pay by direct debit. If you change payment method, check the tariff terms before you do.

Smart meter data and billing cycles

If smart data is missing or delayed, suppliers may revert to estimates. Keep an eye on your app readings and billing statements.

Household changes

Working from home, new appliances, loft conversions, or an EV charger can change your annual usage quickly — which can legitimately change your direct debit.

FAQs: Ofgem direct debit review 2026

Can my supplier force me to accept a higher direct debit?

Suppliers can propose a new monthly amount based on expected usage and account balance, but you can ask for the calculation and request a review—especially if readings or assumptions look wrong.

If I’m in credit, can I get a refund?

If you’ve built up credit, you can ask your supplier about refunding some of it, depending on account status and upcoming costs. It’s also sensible to review whether your direct debit is set too high for your actual usage.

Will the Ofgem review automatically lower my payments?

Not necessarily. The review is about improving how direct debits are set and explained. Your best route to paying less is usually to ensure accurate usage data and compare tariffs across the whole market.

Does switching supplier affect my direct debit?

Yes. When you switch, the new supplier will set a monthly direct debit based on your expected annual usage and their tariff rates. If the tariff is cheaper, your monthly amount can often reduce too.

What if I can’t afford the proposed direct debit?

Contact your supplier as soon as possible to discuss a payment plan. If you’re able to switch, comparing tariffs may reduce ongoing costs. If you’re struggling, also check whether you may be eligible for support schemes.

Is EnergyPlus tied to one supplier?

No. EnergyPlus is a comparison service designed to help UK households compare options across the market so you can make an informed choice.

What UK households say about lowering their energy costs

“I didn’t realise my direct debit was based on an old estimate. After updating readings and switching, my monthly payment dropped and I stopped building up credit.”

— Homeowner, West Midlands

“The comparison helped me understand unit rates vs direct debit. The new tariff was cheaper overall and the payment plan made more sense.”

— Tenant, Greater London

“I used the checklist to challenge a big increase. Once I provided updated readings, the supplier reduced the direct debit.”

— Household, Yorkshire

Trust & accuracy: Outcomes vary by tariff availability, usage, and account balance. Comparing gives you visibility of options; switching is always your choice.

Ready to lower your direct debit in 2026?

Use EnergyPlus to compare whole-of-market home energy tariffs. If there’s a better deal for your postcode and usage, you could reduce your ongoing costs — and the monthly payment that follows.

Whole-of-market comparison for UK households
Clear next steps based on your situation (in credit, in debt, or just want to pay less)
No obligation to switch

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Takes ~2 minutes. Home energy only.

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Updated on 14 Feb 2026