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.
- Seasonal direct debits
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.
- Quarterly direct debit
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.