How your balance works
We update your energy account with charges daily, so you always have an up-to-date view of your balance and how much energy you're using each day. These daily charges add up to the same amount as if we'd calculated them monthly, but you don’t have to wait until the end of a billing period to see what you’ve used. And you're still only billed once a month.
What affects your balance?
The amount of energy you use changes. You use more in winter when it’s cold and dark. And less in summer, when you don’t need your heating or lights as much.
Think of your energy account balance like a pot of money – set payments go in, different amounts come out. Each month we send you a bill for the energy you’ve used, and take the amount you owe from this pot of money. Some months we might take less than the set payments you put in, so you might have a positive balance. Some months it might be more and you might have a negative balance. But don’t worry, it’ll all even out.
We’re aiming for you to have a zero balance at the end of 12 months. So you won’t have to pay us a lump sum of money.
We calculate what to take out by adding up:
- Your standing charges – a daily fixed charge for supplying your energy. It includes the cost of the pipes and power lines, and the maintenance of meters
- The cost of the energy you’ve used, plus VAT
- The cost of any upgrades – like Ovo Beyond
- Any extra charges – these might include things like late fees charged to members who failed to cancel a smart meter appointment in time
From this total we’ll take off any rewards you might have – such as the Interest Reward or the Self Service Reward (not available to new members).
Payments going in:
- Direct Debit payments made from your bank account
- Top-up payments
If we’ve paid any refunds back into your bank account, you’ll see these displayed on your bill and on the 'Billing' screen too.