Paying Methods

MiniLaura

Hi

At moment I get both my gas and electric from ScottishPower. Im in a small privately rented flat - 1 Bedroom, with gas central heating. Use some energy saving bulbs.

Since I moved in a couple of years ago, I have paid on a three month basis by cheque from meter readings, some estimated, some read. Now reading them myself and entering them online/phone,

I didnt take out a direct debit as I'm not a fan plus earning reasonable money so able to write out a big cheque every three months!

Costs are roughly £150 per quarter for both.

IN terms of budgeting (now on a much smaller salary) and getting discounts for paying up ontime and through DD wondering if Id be wise to switch to new method of payment?

Id be looking to pay about £50 a month DD to cover bills, would I just pay this estimate or is it calculated for me every month?

Dont want to get into hassles about overpayment and underpayments etc. Is this usually a problem? Or does it make it hard to budget on month to month basis? If I ahve direct debit I like to know exact date and exact payment coming out each month.

Thanks

Terrylw1

Hi,

There is absolutely no difference in terms of how they produce a bill. They estimate now, and then you contact them with readings to amend your bill to so it is accurate. You should continue that whether you pay by cheque or DD.

The only extra that comes into play is that they have to assess you usage and divide you DD into the months that will cover it instead of you paying by 1 cheque when you get the bill.

Some Suppliers divide it by 12, some by 10.

Also, Suppliers will adjust your DD as the seasons change as they have to raise your DD into the winter quarters to make sure they don't place you in debt. Now, once you get your bill if you have been overpaying due to them over estimating you can simply ask them to re-assess it and lower your DD.

Obviously, the opposite (underpayment) can occur in the summer quarters. However, if you incur a credit they will either refund you when you reach your settlement quarter (traditionally month 12 but should be month 6 with those that use the 6 month assessment rule) or they can leave it on your account and lower you DD.

Suppliers have their different ways of doing this. Some assess your DD every 6 months which means it's more accurate to the seasons.

You will get discounts for paying your fuels by DD as you are seen as a more easier customer to manage as they know they can collect. If you have duel fuel, you may also find that having that and DD gives extra discounts (cashbacks).

Try using the online comparison sites to see what extra discouts you would get.

Above all, the DD method can go wrong for customers who do not get their bills to a customer reading each quarter. This makes their bill estimation and DD assessment inaccurate. So, make sure you carry on doing that and you won't go far wrong with ANY Supplier regardless of what some of the threads say.

angelatgraceland

Yes-I second that. You normally get a dd discount for having the dd. Ive found them very good on assessing my requirments and Ive found that rather than adjusting by the season they adjust yearly. Ive found also that it is not me who sets the initial paymest of X pounds per month, but them. This is so easy,and worthwile doing as I just check my readin maybe once ayear to make sure its near enough correct.You may as well make the savings and set up the dd. Then again-I am a fan of direct debits-they save so much hassle.

MiniLaura

Got it changed to DD, got to choose date it comes out and payment seems reasonable at 42.50 a month. will see how it goes!