Payment avoiding Direct Debits

TerrySampson

Forgive me if this subject has been covered but this is my first ever post. Martin L has just stated on lunchtime news that their wasn’t a cost effective alternative to have a direct debit to pay for your energy. I have just switched to Octopus Energy for electricity and gas. I am paying my bills monthly in arrears using a credit card. I am paying the same tariffs as the price cap using this payment method. Clearly my monthly charges will be greater in the winter as I use more energy. However by using a credit card, I am in control and can time my payment to get 56 days interest free credit and a 1% cash back using my Amex card.

pochase

As far as I am aware Octopus is one of the few (only?) company that does not charge different prices if you pay not by direct debit.

That is an exception in the market, customers of other suppliers pay much higher prices.

For example the below EDF price list shows that the price for 1 KWh electricity is 5.3% more expensive than paying by direct debit. For the standing charge it is even more than 10rect debit..

Astria

It's worth noting a few things: Most providers now support variable direct debit if you agree that your winter payments can be substantially higher than your summer payments (as you'll typically be using more energy), and some banks also offer cash backs for using direct debit for energy payments (but as with credit card there might be account fees to take into account as well)