- Compare electricity prices
- Compare energy prices
- Compare gas prices
- Different Energy Products
- Dual Fuel
- Energy Meters
- Energy monitor
- Energy Performance Certificate
- Energy Saving Tips
- Energy Saving White Goods
- Feed-in tariff
- Find my supplier
- Fixed price energy
- Glossary
- Green Energy Guide
- How To Complain To Your Energy Supplier
- Independent Gas Transporters
- Latest Deals
- Online Energy
- Payment methods
- Renewable energy
- Social Tariffs
- Solar Power
- Switching Suppliers
- Understanding bills
- Energy usage groups
- Energy fuel mix
- Moving home
- The perfect boiler
- Energy tariff ending
- How your gadget habits can make the world a better place
Paying your energy bills
There are a number of ways to pay for your gas and electricity each with their advantages and disadvantages.
In most cases, paying by monthly direct debit is by far the cheapest as suppliers will usually offer an additional discount. However this may not be suitable for everyone.
A low income family may be better off with a prepayment meter, while a household of students may prefer to receive a quarterly bill to make it easier to divide the costs between the residents.
Read our guide below to find out which payment method is best for you, then use the MoneySupermarket energy calculator to find the right tariff for you.
Monthly direct debit
Your energy supplier will work out how much you will spend in the coming year based on your tariff and annual consumption.
You will usually get an additional discount off your energy bills if you choose to pay by monthly direct debt, but it is important to regularly check your bills to make sure you are paying enough.
You will typically overpay during the summer when your consumption is at its lowest and build up a credit balance. This will then be used to help cover your winter usage when your consumption is at its highest.
Again it is very important to monitor your payments and make sure they are covering your usage as the last thing you will want is to get into debt with your energy supplier and risk having to pay a lot more each month.
Monthly variable direct debit
Instead of paying a fixed amount each month, you may want to just pay for the amount of energy you use.
When paying by a variable monthly direct debit, your energy supplier will take the exact cost of the gas and electricity you have used that month from your bank.
This way you will have smaller bills during the warmer months and higher bills during the colder months.
It is important to supply your meter readings on a monthly basis, either online or over the phone to make sure you are billed correctly, otherwise your energy supplier will estimate your usage and could charge you more than you have actually used.
Quarterly cash or cheque
Some people prefer to receive a paper bill every quarter and pay for the amount they have used during those three months.
This is particularly useful in homes where more than one person pays the bills, such as in student accommodation. That way the bill can be divided up between the number of occupants and paid accordingly.
You can pay by sending a cheque in the post to the supplier, pay online or pay over the phone using your credit or debit card details.
You can even take the payment slip located at the bottom of your bill to your bank or post office and pay with cash over the counter.
Quarterly direct debit
Like paying quarterly with cash or cheque you will receive a bill every three months. The amount you have used will automatically be taken from your bank account however.
During the winter months your bill could be quite high, so make sure you have enough in your bank account on the date the payment is due to leave to avoid any unnecessary bank charges.
Payment card
People who don't want to pay by direct debit but do want to make regular payments can use a payment card at a PayPoint or at their local Post Office.
Payment cards do vary between suppliers in how they work so it is worth contacting your supplier to find out if this is the right option for you.
Some suppliers will allow you to make flexible payments throughout the year whereas others prefer you to pay weekly, fortnightly or monthly.
Prepayment meter
Paying via a prepayment meter is usually considered the most expensive way to pay your gas and electricity bills. This is usually because some suppliers will add an extra charge on top of your energy costs.
Consumers must purchase cards or tokens in advance and insert them into the meter. A display shows how much money you have left in the meter before it runs although there is usually an emergency fund.
If you have a prepayment meter and wish to switch to a credit meter and pay via one of the other payment methods, you will need to contact your current supplier. Some suppliers will charge for this service or ask for a deposit if you have a low credit score.
Fuel direct
Anyone who is in debt with their energy supplier and is on income support, job seekers allowance, pension credits or employment and support allowance may find themselves eligible for fuel direct.
This is where a fixed amount (usually £3.25) is taken directly from your benefits by the Department of Work and Pensions and paid to the supplier to help clear your debt.
Once the debt has been cleared you will usually be taken off the fuel direct scheme In special circumstances however, you may be allowed to remain on the fuel direct scheme to pay for your energy consumption.
