Energy bill payment methods
How to pay your energy bill
Direct debit is the cheapest way of paying for energy
Your energy company should give you a choice of ways to pay your energy bills, and the option to pay quarterly, monthly or annually for your gas and electricity.
If you have a prepayment meter, you will pay for gas and electricity in advance on a 'pay as you go' basis.
Paying by direct debit could reduce your energy bills
The cheapest way to pay for energy is almost always monthly direct debit, as most energy companies offer a discount to those who pay for energy in this way.
Prepayment meters are usually the most expensive way to pay for gas and electricity.
Your energy supplier may offer other discounts and incentives too, such as reward cashback schemes or discounts for managing your account online.
Contact your energy company for details of the cheapest ways to manage your gas and electricity accounts.
Whichever way you decide to pay, make sure you give your energy company regular gas and electricity meter readings to ensure bills reflect your actual energy usage.
See our understanding your energy meter section for tips on how to read gas and electricity meters.
Different ways to pay your gas and electricity bills
Monthly direct debit
Direct debit is usually the cheapest way to pay energy bills
Your energy supplier will work out how much you spend on energy in a year and divide this into equal monthly payments. Suppliers usually offer a discount to monthly direct debit customers, as their accounts are easier to manage.
If you pay for your gas and electricity by monthly direct debit, it's important to check your energy bills regularly to ensure you're paying the right amount.
Because energy use is not equal throughout the year, direct debit customers effectively underpay in winter and overpay in summer. It's normal to find your account a little bit in debit at the end of the colder, darker months of the year and in credit at the end of warmer, lighter periods. Everything should balance out over the course of a year.
If you think that you're in debit or credit by too much, ask your energy supplier how your direct debit amount is calculated.
See our how to complain section for advice on dealing with utility bill discrepancies.
Quarterly fixed direct debit
Instead of paying a set amount each month, with a quarterly direct debit arrangement you pay a fixed amount each quarter. Like monthly direct debits you spread payments through the year. Of course quarterly bills will be a lot larger than a monthly direct debit.
Variable direct debit
Your energy company will collect payments from your bank account at regular intervals, based on the amount of gas and electricity you've used in the previous quarter or six months.
Some energy companies offer a discount for paying for gas and electricity in this way, though the discount isn't usually as high as that offered to monthly direct debit customers.
Cash/cheque
Pay by cash or cheque at a bank or Post Office
A quarterly or monthly energy bill is sent out, which you pay by cash or cheque. This is usually more expensive than paying by direct debit, though you may be eligible for a prompt payment discount if you pay on time.
Cheques can be sent through the post (make sure you leave enough time for postage and processing before the payment deadline) or paid in through a bank or Post Office. If you do not leave adequate time for post and processing, you may be charged a late payment fee or penalty.
While this payment method allows you to control when the bill leaves your account, some banks and building societies charge a fee for processing energy bill payments.
You can also pay in cash using a bank or the Post Office, or via a credit or debit card over the phone or online on your energy supplier's website.
Any prompt payment discounts you receive won't be as high as the ongoing discount given to direct debit customers, as setting up a direct debit guarantees you will always pay on time.
Standing order
A set regular payment is sent directly from your bank account to your utility supplier. The amount sent by standing order is based on your annual energy usage divided into equal monthly payments.
Standing orders differ from direct debit arrangements as you, not the energy company, have control of the payment. Your energy supplier can't change the payments, even with your permission.
You can make regular energy bill payments using a credit card
Many energy companies – but not all – offer a discount for paying for gas and electricity in this way.
Continuous authority credit card
Your chosen energy supplier will charge a nominated credit card each month with a regular amount. The amount taken is based on your annual energy usage divided into equal monthly payments.
Payment cards
You'll be issued with a payment swipe card that enables you to pay your energy bills at any PayPoint or Post Office.
Payment cards differ between energy suppliers. Some enable you to make flexible payments throughout the year (even before you receive a bill); others are used to make set regular payments.
Payment cards are a good option for those who don't want to pay their gas and electricity bills by standing order or direct debit and are looking for a convenient way to make cash payments.
Prepayment meters
Prepayment meter customers pay for energy in advance by buying energy tokens or energy credit loaded on to a key or swipe card. Once the credit is low or runs out, you top up the card or key with more credit.
This is usually the most expensive way to pay for electricity and gas. Your energy meter will need to be changed if you want to transfer to an energy tariff that allows you to pay by direct debit or cash/cheque.
Most energy companies won't charge to change a prepayment meter, but you may have to pay a security deposit if you've had trouble paying for gas and electricity in the past.
Cut your energy bills
Those switching energy suppliers using Which? Switch between 1 January and 21 October 2009 saved an annual average of £263.
Why wait to start saving? Compare gas and electricity tariffs now to find the best energy deal for you.