Direct Debit Payments

Published: 13/09/2024
4 -minute read

Direct Debit - The Easy Way to Pay!

Direct Debits are a convenient and efficient method for managing recurring payments, offering numerous benefits for consumers, particularly when it comes to paying essential bills like energy expenses! Understanding how direct debits work, the advantages they provide, and the different types of arrangements available can empower businesses to make informed decisions about their payment methods.

In this blog, we'll take a look into all aspects of direct debits, explore the advantages of using them to pay your energy bills, and discuss the various types of direct debit setups to help you navigate this payment option effectively. We'll also help you get set up on direct debit quickly and easily!

Let's get started...

What is a Direct Debit...

A direct debit, or 'DDs' as its more commonly known, is a convenient payment method that grants permission to a company or organisation, such as TotalEnergies, to withdraw a set or flexible amount from your bank account regularly. In 2022, around 4.8 billion DD payments were made in the UK, with nine in ten customers opting to use this method. Direct Debit is owned and managed by Pay UK. They are the recognised operator and standards body for the UK's interbank retail payment systems and are regulated by the Payment Systems Regulator (PSR).

Direct debits come with a guarantee, with automatic protection from any errors which may occur. This ensures that:

• Customers are informed in advanced if the amount and date of each payment changes.
• Customers can cancel their direct debit at any time by contacting their bank or building society.
• Customers are entitled to a full refund from their bank or building society if an error is made in the payment process.

Types of DDs...

There are different types of DDs, variable and fixed, however as a business energy provider, we use the variable method as your monthly bill will change based on your energy consumption and so there won't be a fixed amount each month. 

Variable:
With a variable DD, you opt in to pay an amount that fluctuates monthly, reflecting your actual energy consumption. By choosing a variable DD, you pay precisely for the amount of energy calculated on your bill each month. This calculation could be from estimated reads, if we've not received an actual read from you, or actual reads if you've sent these to us or if you are on a Smart/AMR meter. Consequently, your energy bills will typically be higher during the winter months and lower in the summer months. 

The Benefits...

Paying by DD offers numerous benefits, such as:

Convenience: 

With direct debits, you don't have to worry about missing a payment or incurring late fees. Your energy bill with be paid automatically on the due date, saving you time and effort.  Your DD will be taken 14 days after the date of each invoice. DDs are also convenient and easy to set up, you only need to provide your bank details and sign a mandate once, and then the payments will be taken automatically without any further action from you.

Automated payments:

Say goodbye to the days of manual bill payments and hello to automation! DDs take the hassle out of remembering to pay your energy invoice.

Money saving:

By paying via DD, you'll avoid having to pay the non-DD admin fee charge of £20 + VAT per invoice and also any late payment fees which may apply. 

Environmental impact: 

By choosing direct debit, you can reduce the amount of paper waste generated from physical bills and checks. This small change can contribute to a greener environment.

Cancelling a DD...

Please speak to us before cancelling your direct debit. If you are struggling to pay your bill, or can't afford your direct debit payment amount, we've several options available to help you. Our team are on hand today to discuss options with you. 

DD and Debt...

If you are in debt and decide to start paying your energy invoices by direct debt, please be aware that for our SME customers, your first direct debit payment will take the full balance on your account (s). From then on, any subsequent DDs will take the total amount on your monthly invoice. This ensures that accurate and timely payments are made each month, reducing the risk of debt building up on your accounts. 

If you are interested in getting set up on DD but you have outstanding debit on your accounts, please get in touch to discuss what options we've got available that can help you resolve any debt issues. For our SME customers, please contact the team on: 01737 275 810 or by email: [email protected]

For our Major Business customers, please contact your dedicated Credit Team for further assistance.