All about paying each bill with a variable Direct Debit
A variable Direct Debit is where your monthly payment goes up and down as your usage changes. Instead of paying a set, predictable amount year-round, your bank automatically pays off your monthly bill in full.
How does it work?
Ten working days after we email you a bill, we’ll take a Direct Debit payment to clear the whole balance owing on your statement.
How is it different from a normal, ‘fixed’ Direct Debit?
Fixed Direct Debit: You pay the same amount every month, essentially paying off your full year’s energy bill in equal chunks (kind of like council tax). This is designed to smooth out your costs — building up credit in the summer months, when most people use less energy, to help cover higher usage in the winter.
Variable Direct Debit: You pay for exactly what you use, when you use it. You won't build up a pot of credit, but it means your payments will be much lower in the summer and significantly higher in the winter.
How do I switch to a variable Direct Debit?
In some cases you'll see the option to switch over on your online dashboard – click 'Pay each bill in full' on the Payments page – but most of the time, you'll need to chat to our team to get your account swapped over to a variable Direct Debit. Just get in touch and we can get it sorted for you.
When exactly will the money leave my account?
Once your bill is created, it triggers a payment request. The money will leave your account 10 working days after your bill is generated. We’ll email to confirm when your payment’s been scheduled each month. It’s a good idea to check your bill promptly so that if something does look wrong, there’s time to get in touch before the payment comes out.
Is a variable Direct Debit the same as a variable tariff?
No, these are two entirely separate things that often get mixed up:
A variable tariff means the price you pay for each unit of energy can go up or down depending on the wholesale energy market.
A variable Direct Debit is simply the way you pay. You can be on a fixed-price tariff (where your unit rates are locked in) and still pay via a variable Direct Debit.
Do I need a smart meter?
You don't technically need a smart meter. However, we do recommend one, because a variable Direct Debit charges you for exactly what's on your monthly bill and smart meters send us those precise readings automatically.
What happens if I don't have a smart meter and I forget to submit a reading?
If you have a traditional meter and we don't receive a manual reading from you, we’ll generate a monthly bill based on an estimate of your usage. Your variable Direct Debit will then automatically take that estimated amount. When you eventually provide a real reading, your next bill will be adjusted to catch up.
What happens if my smart meter doesn't send you a reading?
We’ll generate a monthly bill based on an estimate of your usage. Your variable Direct Debit will then automatically take that estimated amount. When your smart meter is fixed, or you provide a manual reading, your next bill will be adjusted to catch up.
Could I get multiple bills or have multiple payments taken in a month?
Yes. If you submit your readings separately (for example, gas on one day and electricity on another), we will generate separate bills for them. Because a variable Direct Debit automatically pays the balance of a bill, this means you might have multiple payments taken in a single month, but you can sync them if you like: just get in touch.
Are there safeguards if my bill is unexpectedly huge?
Yes. We have systems in place that automatically hold unusual bills so they can be reviewed before a payment is requested.
What happens if my bill is wrong?
Because you receive your bill 10 working days before the payment is taken, you have a window to check it.
If you spot an error before payment: Call us. We can fix the bill and amend the payment amount before the money leaves your account.
If you spot the error after payment: Get in touch with us; we should be able to sort it out. For your peace of mind, though, all of your payments are fully protected by the Direct Debit Guarantee.
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Nicki Slater-Arnold
Writer