How Direct Debits are calculated.
As an E.ON Next customer, there are lots of ways you can pay your energy bills. Direct Debit (DD) is a popular choice that could save you money (you'll get cheaper prices than if you pay when you get your bill). Read on to find out more about the benefits of paying by DD and how you can easily set one up today.
What is a Direct Debit?
A Direct Debit, also referred to as ‘DD’, is a way for you to pay for your energy. Once set up, your bank automatically sends an agreed amount of money from your account to us each month, to pay for your energy bills. There are two types of Direct Debit:
Fixed Direct Debit.
You will arrange to pay a set amount each month - so your payments stay the same throughout the year. Your Direct Debit payment amount will be based on an estimate of your total annual energy use split into equal monthly payments. We’ll also factor in any credit or debt on your account - and if you’re in debt, we’ll collect it over a 12 month period. From time to time we’ll review your payment amount. If you start to use more or less energy, or if your prices change, your payment may need to be adjusted.
Variable Direct Debit.
Instead of setting a fixed amount to pay each month you agree to pay a varying amount based on your energy use. If you set up a variable DD, you’ll pay for the exact amount of energy you use each month, so your energy bills are likely to be higher in the winter and lower in the summer.
Fixed and variable Direct Debits aren’t related to fixed and standard variable tariffs. It is possible to pay for a fixed tariff with a variable DD and vice versa. As an E.ON Next customer you can choose to pay for your energy by Direct Debit at any time. We will agree on a payment date and an amount with you based on your usage. If you start using more energy, or you’re on a variable or tracker tariff where your energy prices can vary, we’ll always contact you before making any changes to your DD amount. You can also manage your Direct Debit online by logging into your account. There you can set a new payment date and request to change the amount if you feel you are paying too little or too much. Learn more about paying by Direct Debit.
Direct Debits explained.
Need help managing your Direct Debit?
In this video our Energy Specialists explain the difference between ‘variable’ and ‘fixed’ Direct Debits and how they work throughout the year.
What are the benefits of paying by Direct Debit?
Cheaper energy costs.
You can save money on your energy bills if you pay by Direct Debit. It's usually around 6% cheaper than paying when you receive your bill(1), because of lower operating costs.
Automatic billing.
Once you set up your Direct Debit you will pay your bills automatically every month. That means you don’t need to worry about forgetting to pay, delays in your payment being received, or your money being lost in the post.
Spread the cost.
If you are on a fixed Direct Debit (where you pay a set amount each month), then your payments are calculated to spread the cost of your energy throughout the year. Most homes use more energy in winter. That is why we calculate your DD payments to build up credit in the summer to help pay for your energy in the winter. This you won’t suddenly start paying more each month when your energy use goes up.
Protection with the Direct Debit Guarantee.
All DD payments are protected by the Direct Debit Guarantee. This means that changes to the payment date, frequency, or amount must be notified at least 5 working days before a payment is due to be taken. It also guarantees that you’re allowed to cancel your DD at any time, and that in the event of an error in one of your payments you’re entitled to a full and immediate refund.
Setting up your Direct Debit.
Want to change your payment method to Direct Debit and start saving money on your energy bills? Simply use your online account or get in touch with one of our Energy Specialists, and they can help you get set up. Please be aware that it can take up to 14 days for your bank to complete the setup of a new Direct Debit.
How we calculate your fixed Direct Debit.
Energy bills are calculated based on the amount of energy you use. To stop you from getting any unexpected bills, we try to make sure you build up a credit on your account over the summer - to cover the estimated rise in your energy costs over the winter. We also try to make sure your monthly DD payments will cover the total cost of your energy use over the year - and we look at whether you have any credit or debt on your account. Overall your account should be in credit after 12 months - meaning you’re unlikely to build up a debt the following year.
Reasons your Direct Debit amount may change.
You are on a variable Direct Debit.
A variable DD is when you pay for the energy you use instead of agreeing a set amount to pay each month. This means you’re unlikely to receive any unexpected bills at the end of the year. However, it also means the amount you pay each month will fluctuate with your energy use - meaning you may pay significantly more in the winter compared to the summer. Therefore, it's a good idea to plan ahead for the colder months by setting a little extra aside when it is warmer and you are spending less on your energy.
Payment review.
A payment review is also referred to as payment adequacy. This is when we review your monthly payment to check it’s right. If you’re consistently using more energy than your monthly payment covers, we may suggest that you change your Direct Debit amount to avoid building up a debt on your account. In some cases, we may also advise this if you’re not building up enough credit to cover the estimated rise in bills during colder months. Find out more about payment adequacy.
Your energy price has changed.
If you’re on a standard variable tariff your energy price is determined by the price cap. Any changes to the price cap may affect your energy prices, meaning that your energy bills could increase or decrease. To account for these changes your Direct Debit amount may need to be adjusted. Learn more about the price cap.
Contact our Energy Specialists if you’re having difficulty.
Please get in touch if you're struggling to pay for your energy - we'll do all we can to help. Take a look at the help and advice we can offer or send us a message 24/7 on Facebook or X (Twitter) - we're here to answer you between 8am - 10pm every day.