How is my monthly fixed Direct Debit worked out?

Depending on your account status, your monthly fixed Direct Debit can consist of a number of things. Here's a brief explanation of each of these:

  1. Any unpaid balance since your last bill (A): If there's any unpaid balance from your last bill, you can choose to either pay it off before you set up your Direct Debit or roll it in your plan.
  2. Energy consumed since your last bill (B): If we haven't received a meter reading from you recently, we'll ask you for one before we set up your Direct Debit. This will help us calculate the amount of energy you have used since your last bill.
  3. Forecasted energy cost (C): To calculate this, we need to know how much energy you are likely to use in the coming months. We do this based on how long you have been with us:

Existing customer: We look at seasonal weather patterns and your previous energy usage, based on the meter readings that we have for your account.

New customer: We estimate your future energy usage based on seasonal weather patterns, consumption information provided to us from National Grid (Gas) or the Meter Operator (Electricity) and information you give us when you join, particularly how much energy you used with your previous supplier.

In either case, this forecasted energy consumption is converted into GBP value by taking into account your current tariff to obtain the forecasted energy cost (C).

Your payments are calculated by adding the three values above (A+B+C). This total cost is then split into equal monthly payments. For most people, this means your account will be in debit in the winter and/or credit during the summer - leveling out by the end of the year.

Annual Energy Consumption