When it comes to energy bills, choosing the right payment option could shave a considerable amount off your annual bill. It is worth looking into your payment options. Our guide reviews each, and will help you decide which is best for you.
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Direct Debit Payment
Direct debit payments are arguably the cheapest way to pay your energy bills. All energy suppliers offer extra savings to customers who make their payments in this way. When searching for the cheapest energy tariff, you are likely to find the best ones require a direct debit payment. For instance, with British Gas’ Websaver 6 you could get up to £73 direct debit discount.
Available in monthly, quarterly or variable options, a direct debit payment plan has many benefits. These include peace of mind your payment is made on time, and the ability to spread your payments evenly so you can plan your budget.
There are drawbacks too, like bank charges if you have not got sufficient funds in your account when payment is due.
Read more in our ‘Guide to paying for gas and electricity by direct debit’.
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Cash Or Cheque Payment
This is the traditional energy bill payment method, still trusted by many households who prefer to settle up by cash or cheque at their local bank or post office. Others will contact their energy supplier’s bill payment line and pay using their debit or credit card.
The main advantage of paying in these ways is having control of when the money leaves your account. There are some disadvantages; some banks charge a bill processing fee and you are not eligible to the energy discounts available by direct debit payment.
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Prepayment Meter Payment
This tends to be the most expensive way to pay for your gas and electricity. It works by topping up either a card or key which is inserted into a prepayment meter. Top ups are generally available at most convenience stores.
It works out to be the most expensive payment method because the prepayment meter is set at a standard tariff, meaning you will not benefit from any discounts from other tariffs including online ones. Another major drawback is older meters require adjustments in prices to be done manually, which could mean a delay before you benefit from a price cut.
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Paperless Billing & Online Account Management
Choosing paperless billing and managing your account online will save you money, and you are doing your bit for the environment. Energy suppliers reward customers who sign up to this not only because it is kinder to the planet, but also because they save money on print and postage costs.
Managing your account online has many benefits, like being able to access it when you want, submit meter readings, and of course saying goodbye to estimated bills.
Sources:
http://www.energychoices.co.uk/partner-ns~guk-energychoices.co.uk/energy-payment-methods.html
http://www.britishgas.co.uk/products-and-services/energy/our-products/websaver.html
