ENERGY customers could get up to £248 off their bills by simply changing the way they pay for their energy bills.

Setting up a direct debit with your energy supplier is a cheaper alternative to paying your bills by cash, card or cheque.

Some energy firms offer a discount to direct debit customers

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Some energy firms offer a discount to direct debit customers

The discount is automatic and most suppliers will add a line to your bill to say it has been applied.

With energy bills set to £3,459 for the typical household next month you could save over £200 over the next year by ensuring you pay by direct debit.

Will Owen, energy savings expert at Uswitch.com previously told The Sun: “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.”

However, the discount offered varies between suppliers and it’s unclear how long they’ll retain the current rates once the new price cap comes into force.

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.

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That equals a saving of £248 for a customer paying £3,549 a year from next month.

Customers of E.ON, EDF and Scottish Power will save £215 over the next year if they opt to pay their energy bills by direct debit.

Customers at Good Energy can get a discount of £15 per fuel type per year.

This means that if it supplies both your gas and electricity, you could save up to £30.

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.

Utilita customers can also get a 6% discount on their bill if they chose to pay this way.

That adds up to £213 for someone paying £3,549 over the next year.

OVO also offers customers a discount for paying by direct debit but failed to disclose how much it’s worth.

However, not all suppliers offer a discount for direct debit payments – including Octopus, Bulb, and So Energy.

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.

There are plenty of energy grants and schemes open to help you out if you’re struggling.

British Gas has recently confirmed that it’ll pay its most vulnerable customers grants worth £750 to help with sky-high bills.

Ask your supplier what’s on offer and how to apply, or check here:

There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment metre.

If you’re in debt there are plenty of services you can take advantage of and they offer free and friendly advice on how to manage debt.

Most of them can offer you free guidance and help in person, over the telephone or online.

They can also help you take the next steps if you need a debt management plan (DMP) to tackle your debt or an Individual Voluntary Arrangement (IVA). These are agreements for managing multiple debts.

What help is already available?

From September the second, one million people receiving tax credits will receive the first half of the £650 cost of living payment.

The money will be paid in the same way you usually get your tax credits.

And from September 20, over six million people with disabilities are set to receive £150 to help with the rising cost of living.

From October the first, all UK households are set to receive the £400 energy bills rebate.

The payment will be made up of six discounts between October and March next year.

Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.

We’ve listed how the leading energy suppliers plan to pay households the discount and are waiting on others to respond.

The way you’ll be paid will depend on how you pay for your energy.

If you’re on a credit meter the discount will come off your bills, but if you’re on a prepayment meter you’ll get a voucher.

Check with your supplier to confirm how you’ll receive the cash.

In November, a £300 one-off “Pensioner Cost of Living Payment” will be paid out to eight million households.

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It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.

Payments for the £150 Warm Home Discount scheme will likely begin from December.

This post first appeared on thesun.co.uk

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