Energy specialists are urging households to begin paying bills via direct debit as an alternative of cheque or cash in a bid to save money in mild of the latest worth cap improve.
This will turn out to be more and more essential after the brand new worth cap comes into impact on 1 October at a file excessive of £3,549.
Currently, cash and cheque funds are nonetheless accessible from most suppliers to individuals who favor to pay quarterly. Many like to pay this manner so as to assist them price range.
Most of the large suppliers, together with British Gas, EDF, EON, Scottish Power and Octopus, enable for quarterly funds.
For quarterly billing, your utilization for the earlier three months might be despatched to you. You can pay by sending a cheque immediately to your power provider within the post, or by paying it in cash or cheque by your financial institution or native post workplace.
However, specialists warn that suppliers penalise buyer who don’t pay by direct debit by making it 5 per cent to 10 per cent costlier to pay by different methods.
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Ofgem says this improve displays the extra prices from suppliers to invoice those who don’t pay by month-to-month direct debit.
Similarly, should you prepay on your power utilizing a prepayment meter, it will price greater than signing up for a direct debit.
You may additionally be lacking out on one of the best offers as some tariffs are solely accessible should you pay by direct debit and some reductions are solely supplied to these on the identical payment plan.
Stephen Murray, an power knowledgeable at MoneySuperMarket, suggested: “If you pay on your power by cash or cheque, name your provider and learn the way a lot it can save you by switching to Direct Debit.
“Not solely can it prevent money, however it’s going to assist unfold out your funds over a 12 months relatively than peaks in bills within the winter months.
“If you haven’t obtained a wise meter, get one so you should utilize the in-home show unit to see how a lot power home equipment use and actual time prices. This will help spot the place you possibly can make adjustments that prevent money.
“The first step is to contact your provider to discover out what help is accessible.”
According to Ofgem greater than 56 per cent of customers pay their power bills via direct debit so there are a selection of people that may save by switching their technique of payment.