Types of direct debit
There are different types of direct debit, so you’ll need to consider which works best for you. They are:
- Fixed monthly direct debit
Your annual bill is estimated, then divided into 12 equal payments. Good for budgeting purposes, but it could mean you end up over or underpaying.
This allows you to pay less in summer (when you use less energy) and more in winter, when bills are generally higher.
- Variable monthly direct debit
Possibly the most accurate option as your monthly payment is based on how much energy you’ve used. But remember to budget for high-usage months.
This splits your bill into four payments. It’s often the best value, as energy providers tend to offer a lower rate for quarterly payment.