How do Direct Debit payments, bills and refunds work?

Direct Debit lets you spread your yearly energy costs evenly over the year. Unless your energy use or tariff prices change, you generally pay the same amount each month.

Have you opted to pay your bill in full each month by Direct Debit? Find answers to your questions

How we work out your monthly payments

It's pretty simple maths. We look at your latest energy use, account balance and tariff prices to work out your expected energy cost for the year ahead.

We divide this total by 12 to determine how much you'd need to pay each month to cover your expected yearly energy costs. This is your monthly payment amount.

When your monthly payments can change

With Direct Debit, the aim is to pay your energy costs for the year over 12 months. We'll keep an eye on your Direct Debit to help keep your payments on track.

We'll change your monthly amount if we spot your expected energy costs have changed. But we try not to do this more than four times a year, to give you a bit of stability.

Why we change your monthly payments

We'll change your Direct Debit amount if we spot your expected energy costs change. This is how we keep your payments on track.

Here are the main reasons why your costs can change:

  • You're using more or less energy: the number of people living at home, the way you use your lights, heating and appliances, and the weather can all impact how much energy you use
  • Your tariff prices have changed: when your tariff prices go up, your energy costs are likely to go up too; if your prices go down, so will your costs

We'll always get in touch if your tariff prices are going to change, to give you plenty of notice.

Why it's normal to see credit and debit on your account

Ever wondered why you pay the same for your energy every month, even though you use lots more energy in winter?

It comes down to how we work out your monthly payments. We divide your expected energy costs for the coming year by 12. This gives us your average monthly cost – and your monthly Direct Debit payment amount.

But this means your monthly payments are higher than your energy use in the summer – and lower than your energy use in winter. This is why you see credit and debit on your account at various times during the year.

How can you change your monthly payments

You know your energy use better than anyone – so if you know your tariff prices or energy use has changed, you can ask us to change your monthly payments.

Go to Manage my Direct Debit in MyAccount and click 'Update Direct Debit amount'.

When you get your bills

If you have a smart meter that gives your meter readings for you, you'll get a bill once a month.

Otherwise, you'll get a bill every time you give us a reading. As we'll ask you for a meter reading once a month, you'll ideally get a bill every month.

Have you opted to pay your bill in full each month by Direct Debit? Find answers to your questions

What happens to your monthly payments if you don't get a bill

Your monthly payment will carry on coming out your bank by Direct Debit once a month – even if you don't get a monthly bill.

When to give your meter readings

One of the joys of having a smart meter is that you don't normally need to give any meter readings. Your meter does it for you.

If you don't have a smart meter – or your smart meter isn't sending us readings – we'll ask you to give us a reading once a month.

It's also a good idea to give us a meter reading if you change your tariff or we've let you know that your tariff prices are changing. This way, we know exactly how much energy you used at your old prices – and charge it at the right amount.

What happens after you give a meter reading

We'll send you a bill every time you give us a meter reading. Your bill shows your latest account activity and balance.

We also use the same information you get on your bill to check your payments are on track. If we see your energy use or tariff prices have changed, we might also change your payment amount. But we try not to do this more than four times a year, to give you a bit of stability.

Have you opted to pay your bill in full each month by Direct Debit? Find answers to your questions

What happens if you don't give a monthly reading

It's best to give us your meter readings every month (unless you have a smart meter that does it for you). It's how you keep your payments on track.

But don't worry if you're a bit late, just give us your reading as soon as you can. Once we get your reading, we'll send out your bill.

If we're not getting any readings from you, we'll send you an estimated bill every three months. Again, as soon as you send us a reading, we'll send you a new bill.

Refunds when you're in credit

You don't normally need to ask for a refund when you see a credit on your account.

Your monthly Direct Debit is calculated based on your annual cost and spread evenly throughout the year. Because of this, you may find yourself in credit during the summer, but it will balance out over the year. 

So that means your monthly payments are actually higher than your energy use in summer – and lower than your energy use in winter. This is why you see credit and debit on your account various times during the year.

If you're still keen to get a refund, please get in touch (we'll ask you for a meter reading to keep your account balance up to date).

Have you opted to pay your bill in full each month by Direct Debit? Find answers to your questions

Refunds when you move home

We'll automatically refund any credit on your account within three working days of your final bill – as long as you don't cancel your Direct Debit.

As soon as the refund has gone through, we'll cancel your Direct Debit for you. We'll also delete your bank details from our system.

Refunds when you switch supplier

You should get a final bill within six weeks of completing your switch.

If you're in credit, we refund your bank account within three working days of the date on your final bill – as long as you don't cancel your Direct Debit.

As soon as the refund has gone through, we'll cancel your Direct Debit for you. We'll also delete your bank details from our system.

Paying your energy bill through Variable Direct Debit each month means you're only paying for the energy you actually use that month

How it works

  • You or your smart meter gives us a meter reading each month
  • We then send you a bill for the energy you've used
  • You pay your monthly bill automatically by Direct Debit

What to do if you didn't want an estimated bill

Just send us a meter reading within 10 days of getting your estimated bill (that's before we ask your bank for payment). We can then cancel your estimated bill, and send you a new one based on your meter readings.

When to give your meter readings

We'll ask you to give us a reading once a month when you pay your bill in full by Direct Debit – so you can pay for the exact amount of energy you use each month.

It's also a good idea to give us a meter reading if you change your tariff or we've let you know that your tariff prices are changing. This way, we know exactly how much energy you used at your old prices – and charge it at the right amount.

Of course, you don't need to give any readings at all if you have a smart meter that does it for you.

Refunds when you're in credit

Any credit on your account will be used to reduce your next monthly bill. So you don't need to ask for a refund.

If you're still keen to get a refund, please get in touch (we'll ask you for a meter reading to keep your account balance up to date).

Refunds when you move home

We can automatically refund any credit on your account within three working days of your final bill – as long as you don't cancel your Direct Debit.

As soon as the refund has gone through, we'll cancel your Direct Debit for you. We'll also delete your bank details from our system.

Refunds when you switch supplier

You should get a final bill within six weeks of completing your switch. If you're in credit, we refund your bank account within three working days of the date on your bill – as long as you don't cancel your Direct Debit.

As soon as the refund has gone through, we'll cancel your Direct Debit for you. We'll also delete your bank details from our system.