direct debit or pay on receipt?

rabialiones

i am aware that paying by dd is cheaper , however would it be less hassle just to pay on receipt of bill , to save having to chase the suppliers for refunds when they have taken too much money. and also , it may be easier to check on usage.
any ideas and recommendations please as i am currently looking to change due to bg fix coming to end.
thanks

SwanJon

How much do you value your time? How big a difference is there between DD and paying on receipt of bill?
Either way will only be as accurate as the readings - provide regular readings and DD will be more likely to be accurate. This is also the best way to check on usage.
Many suppliers let you manage your DD online - so quite easy to get a refund.

AndyPK

If you have plenty of money in the bank at the end of winter/xmas and/or are good at budgeting it is a good idea.


It's called quarterly direct debit. Most suppliers don't advertise it, but will put you on it if you ask.


e.g SSE, npower, EDF etc...


As hinted you get a big bill during winter, but you pay for exactly what you have used




You supply meter readings 4 times a year, they generate the bill, and the direct debit comes out of your account about a month or more later.

Cardew

I believe some of the cheapest tariffs are on-line and restricted to payment by DD only.

Blackbeard_of_Perranporth

My supplier will put you on standard rate. Good if you want to pay more every quarter, me I sat in comofort this morning knowing my furnace has warmed my towel and I have enough on my account to burn another fiver this evening inn the Bridge!

SpotlandRules

Just keep a monthly check on your readings. Use a spreadsheet, to keep a track of your monthly spending.. Very easy to see if you are on target for an around zero pounds end of contract.

Bigphil1474

OP, monthly DD is usually the less hassle option. I'm with EDF and they have tried changing the DD amount a few times, but we've managed to point out the error of their ways each time. Funnily enough they usually try to reduce it rather than put it up. However, if you use your suppliers website, supply regular readings, and if they try messing with your DD unnecessarily intervene yourself, then it's usually less hassle than trying to budget for big bills in the winter and small bills in the summer (IMO).
I usually work out what I think my monthly DD should be - usage for last year, multiplied by current tariff, divide by 12 - and then pay a few quid more than that each month. We currently pay £82 a month, but are in credit from the summer and will lose that over the winter. My annual estimate is £950, so the current DD doesn't need to go up or down at the moment. If we have a really cold winter it might.

MABLE

I am not a fan of paying energy companies by dd. However my electricity is paid by monthly dd. I give them a reading every day so they know exactly what my usage is and so far every thing going well.

macman

As Cardew said: exclude DD and you are excluded from the majority of competitive fixes.

matelodave

Those who have trouble with their direct debits are usually those who dont bother to keep an eye on their bills, read their meters monthly or monitor their consumption.

If you do all those things, which take maybe 5-10 minutes a month then you know if it's all working properly and can sort it out quickly if something starts to go wrong.

Leave it for a quarter then you've got three months worth to sort it out, don't do it all and you could end up with 18 months or so to try and unravel.

AndyPK

Sounds very complicated these monthly direct debits, and keep having to argue with the energy company over the amount or to get credit back


Once you have been at a house for a year you should know the usage and therefore if you are capable of budgeting you should be ok. You also earn a few extra pennies of interest with the money in the bank.


electric monthly could be ok though (if you have gas heating), now we have LED lighting.