Energy Prices payment methods

[DracoM]

Is it cheaper to:
1. Submit your gas and electricity by self-read and submitted monthly readings and then pay online
or
2. Let energy employees read meters
and
3. Have a Direct Debit a/c and so let energy companies take from bank a/c
or
4. Have a pre-payment meter?

Am conflicted. Please help

[french frank]

Depends what you mean by 'cheaper'. In the end you pay for what you use, don't you?

Is it cheaper to:
1. Submit your gas and electricity by self-read and submitted monthly readings and then pay online
or
2. Let energy employees read meters
and
3. Have a Direct Debit a/c and so let energy companies take from bank a/c
or
4. Have a pre-payment meter?

Am conflicted. Please help

[DracoM]

But are there any hidden extras in paying by one method or another?

[Petrushka]

Depends what you mean by 'cheaper'. In the end you pay for what you use, don't you?

Yes and no.

The energy companies claim that payment by Direct Debit works out cheaper but it is impossible to verify this claim due to the complicated way of calculating it versus the other methods. The fact that the companies push hard to steer customers towards paying by DD suggests to my cynical self that it's in their interest and not the customers'.

My preferred method is to pay online monthly on receipt of bill, and as I have a smart meter, I am able to verify the bill against the meter readings and the smart meter. Whether this is cheaper or not is an open question but I feel much happier having total control of my own finances without letting EON helping themselves to my bank account. Another big advantage is that once it's paid, that's the end of it: there is no overhang into the next month.

Of course, there is nothing to say the energy firm might not be fiddling the smart meter/meter readings but that's getting into the realm of paranoia.

If everything tallies and I feel, in today's circumstances, that the total is reasonably correct then I am happy to pay up.

[Old Grumpy]

But are there any hidden extras in paying by one method or another?

Anton's yer man, hang on in there!

[Pulcinella]

In a previous house, we had a small reduction in our bills for a dual-fuel (gas and electricity) account when we paid by direct debit.
I've no idea if similar schemes still operate, though.

[antongould]

Is it cheaper to:
1. Submit your gas and electricity by self-read and submitted monthly readings and then pay online
or
2. Let energy employees read meters
and
3. Have a Direct Debit a/c and so let energy companies take from bank a/c
or
4. Have a pre-payment meter?

Am conflicted. Please help

Many people feel your pain ..... but being here you have already received a lot of sound advice, other than wait for Anton of course.

I cannot add a great deal other than prepayment, having been more expensive than Receipt Of Bill (ROB) and Monthly Direct Debit (MDD), seems to be coming in line .... but how I haven't yet seen .... almost certainly shambolically.

Should energy prices fall then no doubt we will see the suppliers marketing departments unleashed and then different kWh rates will abound from different suppliers and for different payment methods.

A comment on Petrushka's excellent post you don't need a smart meter to follow that methodology; if like me you don't - still - have a working smart meter you can read your own meter as we did when we were young .....

[Sir Velo]

Always do option 1 - unless you're happy for the energy companies to use your cash as a deposit account for them to earn interest.

[Petrushka]

In a previous house, we had a small reduction in our bills for a dual-fuel (gas and electricity) account when we paid by direct debit.
I've no idea if similar schemes still operate, though.

But a 'small reduction' from what and how was this verified compared to other methods of payment? Direct Debits are fine for paying a fixed monthly sum, I have several myself for such things as magazine subscriptions and council tax, but it's a very different ball game when dealing with a variable amount such as gas/electric. By its very nature, you are handing over permission for the energy company to take what they want and it is utterly impossible to verify claims made of it being cheaper compared to other methods.

I struggle to understand why so many people choose to pay for their energy this way because the scope for error, deliberate or otherwise, is huge and the customer will always be the loser.

To coin a phrase: Take back control! In this case, of your finances.

[french frank]

Of course, there is nothing to say the energy firm might not be fiddling the smart meter/meter readings but that's getting into the realm of paranoia.

If everything tallies and I feel, in today's circumstances, that the total is reasonably correct then I am happy to pay up.

Well, I'm probably (unlike some here ) at the lower end of the income scale; and half the reason for that is that I feel my time is worth more than my money. How much time do people spend ferreting around for the 'best deal' on everything they buy, and then wondering whether there might be something better still? Always on the look-out for bargains? I'm happy to pay a fair amount for what I want/need as long as its within my normal limit. For energy, I trust my supplier 100% not to be cheating ANY of its customers, and the peace of mind that gives is worth the time spent seeing if I can save a tenner a year with another supplier - until I think there might be a better deal somewhere else and then …

Bank rates being low (my current account pays 0% at the moment), an earmarked nest egg for paying my energy bill is just as safe with the energy supplier as in my account. The only sign that I'm not actually poor is that I'm not interested in money. I'd probably say I'm 90% frugal and 10% sybaritic.

[Petrushka]

Well, I'm probably (unlike some here ) at the lower end of the income scale; and half the reason for that is that I feel my time is worth more than my money. How much time do people spend ferreting around for the 'best deal' on everything they buy, and then wondering whether there might be something better still? Always on the look-out for bargains? I'm happy to pay a fair amount for what I want/need as long as its within my normal limit. For energy, I trust my supplier 100% not to be cheating ANY of its customers, and the peace of mind that gives is worth the time spent seeing if I can save a tenner a year with another supplier - until I think there might be a better deal somewhere else and then …

Bank rates being low (my current account pays 0% at the moment), an earmarked nest egg for paying my energy bill is just as safe with the energy supplier as in my account. The only sign that I'm not actually poor is that I'm not interested in money. I'd probably say I'm 90% frugal and 10% sybaritic.

When it comes to energy I spend zero time in hunting for the 'best deal' mostly because one doesn't exist. What I don't want is to be deliberately cheated.

For what it's worth, my income is the state pension plus three other smallish but reasonable pension payouts each month and I don't have a mortgage or a car so can easily afford those big boxed sets.

[antongould]

…….. and it is utterly impossible to verify claims made of it being cheaper compared to other methods.

……….

With the company I worked for it was always very straight forward to see that it was cheaper - the bill showed a credit amount “Direct Debit Discount” which was higher if you took both fuels ….. . It has also been reasonably obvious to see that I pay less by monthly direct debit with all the rag, tag and bobtail suppliers I have been with since privatisation … I wouldn’t have signed up otherwise ….

[french frank]

When it comes to energy I spend zero time in hunting for the 'best deal' mostly because one doesn't exist. What I don't want is to be deliberately cheated.

So choose an ethical supplier but pay a bit more if necessary! Peace of mind

What to look for when buying an electricity or gas tariff:
Is the company building new sources of green energy? Look for a renewable energy company that is building renewable capacity.
Is the company helping customers to reduce their energy use? This is still important as all electricity has the same carbon footprint, whatever its official grid mix.
Does the company treat its more vulnerable customers well? The energy price crisis is hitting people hard.

https://www.ethicalconsumer.org/ener...ergy-suppliers (Subscription for full report)

[Pulcinella]

But a 'small reduction' from what and how was this verified compared to other methods of payment? Direct Debits are fine for paying a fixed monthly sum, I have several myself for such things as magazine subscriptions and council tax, but it's a very different ball game when dealing with a variable amount such as gas/electric. By its very nature, you are handing over permission for the energy company to take what they want and it is utterly impossible to verify claims made of it being cheaper compared to other methods.

I struggle to understand why so many people choose to pay for their energy this way because the scope for error, deliberate or otherwise, is huge and the customer will always be the loser.

To coin a phrase: Take back control! In this case, of your finances.

I don't have any of the old bills/paperwork now, but seem to remember that the company said that there was something like a 2.5% bill reduction (discount) in such cases.

[gradus]

I'm in the Octopus camp now having been acquired from the defunct Bulb. The process of changing is baffling as I still get Bulb emails and account statements that differ quite substantially from those sent by Octopus. I supply meter readings to both but presumably Octopus will eventually subdue its apparently reluctant takeover victim. Meanwhile I appear to have generated refunds and a lower monthly payment. Lord alone knows why.