Cheaper to pay electric by meter or by Direct Debit?

helen79

Hi, I was just looking for some advice on behalf of my parents. They currently pay for their electric by using a key meter, they have been using this method for some years. They were just wondering whether it would be cheaper to get rid of the meter and pay by direct debit?
Any suggestions please?
Thanks xx

KTF

Direct debit will be cheaper. They will have to phone up their current provider who will then do a credit check before changing the meter over.

kjsmith7

MUCH CHEAPER. Not only are credit meters around a penny or so a unit cheaper for each utility anyway, you get a further discount for paying my direct debit! I think they're doing free meter exchanges from credit to prepayment (the other way around from the way your parents may wish to go) at BG, maybe they're doing it prepayment to credit?

NATNJO

Make sure ur parents cap the dual fuel.Prepay is sometimes better i.e if they travel more than average a yr or the size of the house.There is a 1p differance but the pros outway the cons when thinking of credit meters.I personally would stick with the meter there is less chance of a massive increase like of late,As it takes longer for the recalibration to update the meter,.

greenbee

MUCH cheaper on DD - you get access to better rates just by being on a credit meter rather than prepayment. You can then factor in DD discount (however small, it's worth having!).

Your supplier will probably do a credit check before changing, and may ask for a deposit. I don't think they charge, but can't find anything to back that up!

Re. the pricing being updated on the meter - this can be done in a number of ways, e.g. when you top up your key or card. If you use a key or card that is from a different supplier to the one you're with, the price might not update - and this is how you can get in debt... delays to price rises aren't actually a bonus, as the supplier can work out when your meter was updated and backdate the increase.

I'd go for the credit meter and DD, and submitting regular meter readings to keep the account under control and billing accurate.