Equal Direct Debit Payments

Equal Direct Debit Payments

The cost of energy is one of the largest household expenditures, so budgeting correctly for it is a must. Traditionally you would pay your energy company more when you used more energy (typically during the winter months) and less when you used less (the summer months). This isn't ideal for everyone, as most of us get paid the same each month regardless of whether it's cold outside.

We offer the option to pay an equal amount each month, helping you to budget more accurately and avoid any nasty surprises. We do regularly review how much you're paying to ensure that your equal payment amount reflects your expected energy usage.

We also have a page as a guide for those making Seasonal Direct Debit Payments. Please Contact Us if you would like to change your payment plan.

How we calculate the payment amount

We calculate your fixed monthly Direct Debit payment amount by taking your forecast annual energy costs and dividing this number by 12. This spreads the annual cost of energy equally across each month, and meaning we do not add an uplift for winter months when usage is normally higher.

Your forecast usage is based on all the information you provided us with during the quote process. The most accurate way to forecast your costs is using annual kWh figures (these can be found on your energy bills), but if you don't know these or have them to hand, we can help you estimate it by looking at the tariff you are currently on and how much you are paying, or by selecting either the 'basic estimate' or 'detailed estimate' options.

You may use more/less energy depending on the time of the year, so you’re likely to see your account balance in debt over winter and in credit the summer. As you are paying by a equal monthly instalments, this should even out across the year.

So, for example, if you're expected to spend £600 over the next 12 months, we will split this into 12 equal payments of £50.



What this means for your Account Balance

As we take payment in advance of your usage, we would expect that your account to be more often be in credit, during the high usage months it's likely that your account to be in debit.

During your first month, your account will be in credit because we've taken your first Direct Debit but we haven't produced your first statement yet. Your next month's Account Balance will be calculated as follows: the Account Balance from the previous period (i.e. your first payment) - your charges for the month before + plus your next month's advance payment.

So in the example used above, January Account Balance is your first payment amount (£50). Your February Account Balance will be your previous months Account Balance (£50) - the January energy charges (£71) + your February advance payment (£50) = £29 CR.

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