What is a direct debit energy bill?
If you’re unsure on how to pay for your energy bills, then our guide on direct debit energy payments will explain the best way for you to pay for your bills.
What is a direct debit energy bill?
A direct debit energy bill is a type of energy bill that is paid automatically from the customer’s bank account on a regular basis. This is in contrast to other types of scheduled energy bills such as quarterly bills, which will obviously mean more money comes out of your account each payment but with only four payments being made to your supplier per year.
Direct debit energy bills are a convenient way for businesses to manage their energy costs. They can help businesses to:
- Automatically pay for their energy bills and avoid the risk of late payment fees.
- Spread payments out over a year so that businesses can budget for their energy costs with ease.
- Improve their cash flow by reducing the amount of money that they need to pay out in one lump sum.
In addition, many energy suppliers offer discounts to businesses that pay their bills by direct debit. This can save businesses money on their energy costs.
How to set up a direct debit energy bill?
To set up a direct debit energy bill, businesses will need to provide their energy supplier with their bank account details. They will also need to choose a date on which they would like their direct debit to be paid.
Most energy suppliers will allow businesses to set up a direct debit online or over the phone. Some energy suppliers may also allow businesses to set up a direct debit by mail.
Once a direct debit has been set up, the energy supplier will automatically withdraw the amount due from the business’s bank account on the agreed date.
If my bank account changes will I need to tell my energy supplier?
If your bank account changes or payment details need to be changed in order to process your monthly or quarterly payment, then it’d be best practice to get into contact with your supplier. When you have corrected your details your payment will go through.
Things to keep in mind with direct debit energy bills?
Businesses should be aware of the following things when setting up a direct debit energy bill
- Businesses should carefully check the amount of the direct debit before setting it up. They should make sure that they can afford to pay the amount on a regular basis.
- Businesses should choose a date for the direct debit payment that is convenient for them. They should avoid choosing a date that regularly falls on a bank holiday or weekend, as this could delay the payment.
- If businesses need to make any changes to their direct debit, such as changing the amount or the date of the payment, they should contact their energy supplier as soon as possible.
Direct debit energy bills can be a convenient and cost-effective way for businesses to manage their energy costs. Businesses should carefully consider their needs and goals before making decisions about their energy procurement.
Can I pay quarterly for my business energy bills?
It is possible to pay for your energy bills quarterly on some tariffs and it all depends on the company that supplies you. The difficulty with paying for your energy bills quarterly is that the pricing can fluctuate dramatically when heating is required throughout the winter. You’ll also find that there are fewer discounts available to customers who pay for their energy bills quarterly.
Is it better to pay bills monthly or quarterly?
The only real difference is that paying for your bills quarterly will mean that the payment sums will be more, but spread over the course of a year they will end up at a similar price. Paying for your bills quarterly will mean payments may become more difficult should finances become tight or your bills become more expensive due to usage.
What happens if I can’t afford to pay for my quarterly business energy bill?
Here are some additional tips for businesses that are considering using a direct debit energy bill:
- There are a number of energy comparison websites that can help businesses to compare prices and deals from different energy suppliers.
- Businesses should read reviews of different energy suppliers before choosing a supplier. This can help them to choose a supplier that is reliable and offers good customer service.
- Businesses should carefully read the terms and conditions of the energy contract before signing it. This will help them to understand the terms of the contract and ensure that they are getting a fair deal.
- Businesses should monitor their energy consumption and identify areas where they can save energy. This can help them to reduce their energy costs.
By following these tips, businesses can choose the best direct debit energy bill for their needs and save money on their energy costs.