Paying by Direct Debit is usually the cheapest way. If you choose this way of paying, the company will decide how by thinking how many units of gas and electricity you are likely to use in a year.
Paying by Direct Debit
Direct Debit
This is when money goes straight from your bank account to pay a company. It normally means the same amount each month which the company works out.
Units
Things like gas and electricity are measured in units. This showed how much you have used.
Gas and electricity
Gas and electricity provide power to your home. They make things like the cooker, fridge, heating and hot water work. They also make things like kettles and TVs work.
They divide this by 12. That is the amount they will take from your bank account each month.
Bank account
You can put money in the bank and leave it there. Then when you need it you can take the money out to pay for things.
If you are happy with what they say, then you set up a Direct Debit using your bank account.
Direct Debit
This is when money goes straight from your bank account to pay a company. It normally means the same amount each month which the company works out.
Bank account
You can put money in the bank and leave it there. Then when you need it you can take the money out to pay for things.
At the end of the year they will look at how much gas or electricity you used.
Gas and electricity
Gas and electricity provide power to your home. They make things like the cooker, fridge, heating and hot water work. They also make things like kettles and TVs work.
If you did not use as many units as they thought, they will start taking less money each month.
Units
Things like gas and electricity are measured in units. This showed how much you have used.
If you used more units than they thought, they start taking more money each month.
Units
Things like gas and electricity are measured in units. This showed how much you have used.
They have to tell you that they are going to change the amount. If you think they have got it wrong, then you should ring them and say why. The telephone number to call will be on the statement the electricity company sends you.
You can find out more about paying your bills and having a bank account in the section on this website called Managing your money section. You can get to this section from the top of the page.
You can also go to the section called Using a bank account on the Making Money Easier website.
Find out about paying bills at the bank or post office on the next page