Payment type - single occupant house

Roz3625

Hello

Not sure if this is an easy one to answer but just after some advice.

I'll be moving into a 1 bedroom new build house, open plan kitchen/living room. I'll be a single occupant and I work 48 hours over 4 days so on those days I'll just wake up, get ready for work and not be home until half 6 for tea and then pretty much go up to bed once I've got my things ready for the following day. And on my 4 days off I'm out and about.

My question is: would it work out better for me to pay my bills monthly/as they come or to pay by direct debit even though this may work out quite a bit more per month? 

I don't think I'll use a lot but I'm aware prices are rising ridiculous amounts so will still be high. I work with someone who was quoted £175/month for a 2 bed new build and he currently pays around £85 a month and is in credit on his account. (Single occupant but has his kid on weekends)  similar with my friend who is in credit on energy and water because of higher direct debits. Although credit is a bonus, I think I'd rather just pay for what I use? Thanks 

[Deleted User]

It depends if you're disciplined enough to budget properly. It makes no difference to what you ultimately pay.

mysteryUser

You can pay for what you use by direct debit - it's called a variable direct debit. 

Providers typically do one of two things, the most common is they guess your annual usage and divide it by 12, making you pay the same amount each month for the year. However the guesses on annual usage may not be great. 

Most allow you to alternatively pay by variable direct debit, meaning they need a monthly reading and you get billed for that usage. 

With it being a new build, I guess it has a smart meter - that should mean accurate bills. 

If you choose to not pay by direct debit then you will typically pay a bit more compared to paying by direct debit. 

Alnat1

Ask if you can pay by VARIABLE DD rather than FIXED DD. Most companies will allow this, just a few don't.

It means you give a monthly meter reading, the energy company generates a bill and around 14 days later they will take a DD for the amount of the bill. This means you will never be in debit or credit but it also means winter months will mean bigger bills if you've had the heating on.

danco

If it's a new build in a group of new builds, make sure that you check the meter serial number against the bill, or against the MPAN (meter point access number).

It's quite common with newbuilds for the national database to use the plot numbers assigned during the building, and these can be very different from the postal address that is ultimately given to the property.

This can cause all sorts of problems. It's taken me two years to clear it up for me (though that was partly because I changed suppliers - if you stick with the original supplier it will still take time, but much less).

jrawle

I'm just wondering where you live that has eight days per week! That must change the economics significantly, although it will mean an increase in the weekly standing charge.

But to be serious, the fact you are a light user or the type of property makes little difference to how you pay. Direct debit is a must, unless you want to pay more than necessary. The choice is between a fixed monthly amount, or variable where you pay for what you use each month. It depends how disciplined you are. If you are the sort of person who sees your bank balance as a spending target to be reached by the end of each month, it's best to stick with a fixed amount. If you are frugal, and move your money to a savings account each month, go for variable and earn a bit of interest rather that letting the energy company do so.

Depending on which company you are with, you may have to phone up to ask to go onto variable DD. It can be a pain as not all their call centres open 24/8...