Full list of energy firms offering bill discount of upto £140 revealed – and how to get it
ENERGY customers could get upto £140 off bills just by switching to direct debit.
It is often a cheaper way of paying compared to alternatives such as cash or cheque payments, or online or through an app.
The discount is automatic and most suppliers will add a line to your bill to say it has been applied.
Will Owen, energy savings expert at Uswitch.com says: “Many energy suppliers will offer consumers different ways to pay for their bills including through cash or cheque.
“Paying by direct debit is usually the cheapest way to pay as suppliers tend to offer a discount for this method.
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“So as well as making payments easier, your energy bills could be smaller too if you choose to pay by direct debit.”
It comes as analysts have warned that energy bills could hit £5,300 next year.
Energy regulator Ofgem will announce on August 26 what the energy price cap will increase to this autumn. The change will come into effect on October 1.
However, the discount varies between suppliers. We take a closer look at what you can get.
The country’s biggest energy supplier, British Gas says customers can save up to 7% off the cost of energy if they pay by direct debit.
That equals almost £140 for a customer paying £1,971 a year.
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Utilita customers can also get a 6% discount on their bill if they chose to pay this way.
That adds up to £118 for someone paying £1,971.
Meanwhile, Shell Energy applies a monthly direct debit discount, which it says can save customers up to £48 per fuel per year – or £96 a year.
So Energy offers a discount of £15 per fuel type per year – adding up.
This means that if it supplies both your gas and electricity, you could save up to £30.
OVO also offers customers a discount for paying by direct debit.
The Sun has contacted the supplier to find out how much customers could save by paying this way.
However, not all suppliers offer a discount for direct debit payments – including Octopus, Bulb, and So Energy.
EDF, E.ON, Ecotricity and ScottishPower have been contacted for comment.
How do energy direct debits work?
If you pay by direct debit you’ll pay your provider a set amount every month – but this isn’t actually your bill.
Your bill is the amount you’re charged for your energy.
It’s a combination of a standing daily charge and your metered energy usage.
It will be different every month, depending on how much you use.
By paying your direct debit ensures there is always enough money in your account to cover this changing cost and keep you in credit.
Energy firms estimate how much they think you’ll use over the year and divide this by 12 to determine your monthly direct debit amount.
If you pay quarterly, the yearly estimate will be divided by four.
It’s important to be aware that you might be paying for more than you’re using at some points during the year and particularly over the summer.
This is because it’s unlikely that you’ll be paying to heat your home during the warmer summer months.
But this tends to balance out over the year.
Should I switch to get the direct debit discount?
Energy expert Will said due to the current energy crisis, there are not many opportunities to switch energy suppliers right now.
However, it may be worth switching to direct debit to get the bill discount if you don’t already pay that way.
It comes as customers are being urged to check their bills as it has emerged that at least four major suppliers have hiked direct debits again.
Customers of Ovo, Scottish Power, British Gas and Bulb Energy have taken to social media to complain of crippling bill hikes.
Experts have warned that some firms are already hiking bills in anticipation of the increase in October.
Energy bill help
There are schemes offered by suppliers, local councils, charities and the government that could help.
If you’re struggling with energy costs or other bills there are plenty of organisations where you can seek advice for free, including:
- National Debtline – 0808 808 4000
- Step Change – 0800 138 1111
- Citizens Advice – 0808 800 9060
You should speak to your energy supplier in the first instance as they have schemes in place to help with bills and arrears, including hardship funds and grants.
For example, British Gas and Octopus have set up funds worth up to £750 to help customers who are struggling with their bills.
Your local council may also be able to help with cash and grants if you are struggling with bills through the Household Support Scheme.
You should also check that you’re getting all the benefits you’re entitled to.
Use an online benefits calculator to make sure you’re not missing out on any extra cash.
Similarly, you can search for charity grants that help you pay for gas and electricity bills.
There’s more help from the government on the way too, later in the year in the form of one-off cost of living payments worth as much as £1,500 depending on your circumstances.
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The £300 is on top of the annual winter fuel payment where those getting the state pension can get between £100 and £300 to offset the cost of keeping their homes warm over the colder months.
Low income households can get a one-off £150 payment under the existing warm home discount scheme – applications open in the autumn.