MILLIONS of energy customers will be charged more than other billpayers within days because of the way in which they pay.
Average gas and electricity bills are set to drop by £426 a year from Saturday, July 1.
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However, millions of households will still end up paying £138 more per year than those who pay by direct debit or through a prepayment meter.
Over 68% of the 29million households on the standard variable tariff (SVT) pay by direct debit.
But 18% of customers still pay on receipt of bills and the remainder use prepayment meters.
Figures obtained by The Sun show that 5.2million households who pay for their energy bill via credit, debit card or cheque will continue to pay more for their gas and electricity because they use these payment methods.
Ofgem’s latest figures also suggest that those who pay for their energy by standing order face paying more.
Under Ofgem’s Energy Price Cap households pay different unit rates and standing charges depending on how they pay their bills and where they live.
For most, the cheapest way to pay your energy bills is via direct debit.
From July 1, a typical household that pays their energy bill by direct debit will pay the following rates:
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- 7.51p per kilowatt hour (p/kWh) for gas
- 30.11p/kWh for electricity
- A standing charge of 29.11p per day for gas
- A standing charge of 52.97p per day for electricity
It means that a household with typical usage can expect to pay £2,073.98 a year.
This is based on the average household using 12,000kWh of gas and 2,900kWh of electricity every year.
However, those who pay on receipt of their bills can expect to pay £2,211.63 across the same period.
This is because these households will have to pay the following unit rates and standing charges:
- 7.91p per kilowatt hour (p/kWh) for gas
- 31.72p/kWh for electricity
- A standing charge of 34.34p per day for gas
- A standing charge of 59.51p per day for electricity
Be aware that the exact unit rates and standing charges that you pay will vary slightly based on your supplier and where you live.
To find out your specific rates check your first gas and electricity bill received after July 1.
How can I lower my energy bills?
Switching to paying your energy bills by direct debit is one of the simplest ways to bring down your charges.
Customers of several firms have a choice over how their direct debits are set up:
- Fixed direct debits
- Variable direct debits
With a fixed direct debit, you’ll pay a fixed amount every month. Your energy company will work out the cost of your energy for the year ahead and divide this into equal payments.
Most energy firms will use the average amount of gas and electricity used in previous years to calculate your monthly instalments.
With a fixed direct debit you can spread the cost of your energy use without any surprises.
With a variable direct debit, you can choose to pay a varying amount every month or every quarter, depending on the energy you use.
You’ll pay for the energy you use, this means you’ll likely pay more in the winter and less in the summer.
