Which payment method to use?

sweetbutternut

Hi,
I'm in the process of moving into a new property and am looking for a new elec/gas provider. Here are some of the payment options I have come across:

Monthly direct debit
Pay on receipt of bill
Quarterly direct debit
Weekly
Annual advanced DD
Monthly in advance dd

I want a payment method where I pay EXACTLY for what I have used, rather than pay for an estimated reading.

I understand that it is cheaper to pay for monthly direct debit, but am I right in saying that monthly direct debits are based on estimated rather than actual readings?

Also, what is the meaning of "No Standing Charge"?

Can anyone advise? Thanks

sweetbutternut

Anyone? I just want a payment method where I pay EXACTLY for what I have used, rather than pay for an estimated reading -

does this mean that I have to go for :

Quarterly variable direct debit or Pay on receipt of bill? Are those my only options?

Thanks

macman

If you use any other method than monthly DD then you are excluded from all the cheapest tariffs, which are usually the online ones.
It would not be practical for the suppliers to read meters and bill you monthly for actual consumption, the point about monthly DD's is that it enables you to average out your monthly consumption over a full year.
No standing charge means that there is no fixed daily charge on your acount,instead you pay a slightly higher unit rate. Generally this will only be cheaper if you are a very low user, or occupy the property on a part time basis.

penrhyn

http://www.britishgas.co.uk/products-and-services/energy/our-products/energysmart.html

This is not the cheapest of tarriffs, you take your own monthly readings (submit online or text) and pay the exact amount owing by variable direct debit.

Owain_Moneysaver

If you get an estimated bill you can always phone/go online and submit a more accurate reading.

Mankysteve

Its down to you to submit meter to get actually bills.

Best thing is to go mounthly direct debit which is usually the cheapest with on-line management as most companies will send you an email to remind you to submit a reading, once a month.

Do the usually shopping around with the usually sites. I'm with BG with there cheapest normally account

I use BG myself with this package http://www.britishgas.co.uk/products-and-services/energy/our-products/onlinesaver.html

But I'm by no means telling you go with them shop around.

sweetbutternut

Thanks for replies everyone. I know that monthly direct debit is the cheapest option, but I really don't like the idea of estimated readings. I don't need all that refund of overpayments at the end of year or underpayments at the end of year hassle. I want to know what I've used and pay for it, that's it.

The Energy Smart thing looks good. Just wondering if I can pay actual bills with any other companies besides British gas or does every gas/elect company use estimated bills?

Mankysteve -do you pay actual bills with BGas and do you use variable monthly direct debit?

Thanks!

Premier_2

sweetbutternut wrote: »

...Here are some of the payment options I have come across:

Monthly direct debit
Pay on receipt of bill
Quarterly direct debit
Weekly
Annual advanced DD
Monthly in advance dd

I want a payment method where I pay EXACTLY for what I have used, rather than pay for an estimated reading.

That only leaves

Pay on receipt of bill
Quarterly direct debit

sweetbutternut wrote: »

I understand that it is cheaper to pay for monthly direct debit, but am I right in saying that monthly direct debits are based on estimated rather than actual readings?

No. But neither does it mean you pay exactly what you have used.
You say what the annual consumption is likely to be and they charge you 1/12 of that every month. They keep reviewing this in light of consumption to ensure it remains on target (hopefully)

Estimated readings are used when an actual is not available. If you provide your own readings (and ensure they are used) that will avoid the necessity of using estimated readings.

sweetbutternut wrote: »

Also, what is the meaning of "No Standing Charge"?

Can anyone advise? Thanks

A standing charge is a charge applied irrespective of any usage and is usually applied pro-rata on a daily basis.

No standing charge means you are not charged this. But be aware that most no standing charge tariffs have 2 tier pricing charging you a premium for the initial x amount of units.
Unsurprisingly if you use at least the amount of units charged on the tier 1 level, the premium you pay equals the standing charge that would otherwise apply.
No standing charge tariffs therefore only benefit those who use less than the tier 1 limit.