We want to make managing energy simpler for you. It’s why we offer multiple ways to pay for your electricity and gas bills. Direct Debit (DD) is the most convenient choice, plus, it could help you save money because you'll get cheaper prices than if you pay when you get your bill. Read on to learn about the benefits of a Direct Debit, the differences between fixed and variable Direct Debits, and how to set one up easily.
What is a Direct Debit?
Let’s start with the basics. A Direct Debit is the most popular way of paying for your energy bills. After authorising the set up in your online account, your bank automatically sends us the agreed amount from your account on your billing date. There are two types of Direct Debit:
Fixed Direct Debit. Your annual use, split over 12 payments. We'll review your payments regularly to ensure you're paying the right amount.
Variable Direct Debit. Each time you’re billed, you’ll pay an amount based on the energy you’ve used in that specific period.
We’ll go into more detail about each DD payment option in the next section.
It’s also important to point out that fixed and variable Direct Debits shouldn’t be confused with fixed and standard variable tariffs. You can pay for a fixed tariff with a variable DD, and vice versa.1
What’s the difference between a variable and fixed Direct Debit?
Setting up a variable or fixed Direct Debit is pretty simple – it’s an easy automatic payment from your bank account at the end of each billing period. However, the main difference is the amount you’ll pay each month. A variable DD is the best option for small business owners, while a fixed DD is more suitable for homeowners. Let’s delve a little deeper.
How is a fixed Direct Debit calculated?
When it comes to a fixed DD, you’ll pay a set amount each month. We do this by taking your most recent energy reading and calculating an estimate of your annual use. Then, we split the total into 12 equal payments.
You might be in debt some months and in credit at others, but we balance it out by spreading it over a set period. The aim is to build up your credit balance over 12 months so there’s enough credit to offset any energy use spikes in the winter.
Don’t worry, we’ll review your payment amount regularly to keep your account in check.
Homeowners can benefit from a fixed Direct Debit.
A fixed DD is a great way of paying for your home energy bill. It could complement your lifestyle and make paying bills less hassle. The benefits of a fixed DD:
Spreading the cost. On a fixed DD, your payments are calculated to spread the cost of your energy throughout the year – whatever your energy use habits are. This method aims to make payments more manageable.
Automatic billing. Once you’ve set up your fixed DD, it automatically covers your bill amount. So, you won’t need to worry about the cheque getting lost in the post.
How is a variable Direct Debit calculated?
On the other hand, a variable DD payment amount varies on each bill because your energy use also varies. Payments are based on the energy you use, and it isn’t spread out equally over 12 months.
As a homeowner, you’ll usually pay less in the summer when you’re outside more often and more in the winter. That’s because heating, hot baths, hearty meals, and switching on the lights at 4pm all have a price. However, if you have a small business, your peaks will usually reflect busier production periods, which differs from business to business.
Just remember that your payments will rise to reflect any increases. So make sure you budget with these peaks and troughs in mind.
Businesses can benefit from a variable Direct Debit.
A variable DD is the preferred option if you’re a small business owner. It aims to help you meet your energy costs in the most effective way. The benefits of a variable DD:
Stay on track. As a business owner, choosing a variable DD may make it easier for you to meet the costs of your energy use during your busiest periods.
Automatic billing. After setting up your variable DD, it’ll automatically cover your bill amount without the faff of manually transferring a payment.
What does 'DR' and ‘CR’ mean on my bill?
'DR' is short for 'debit'. It means that you've used more energy than you've paid for at that point in time.
Meanwhile, 'CR' means your account is in 'credit'. You've paid for more energy than you've used at that point in time. Also good to know - if your account is 'balanced' it will show as £0.
Fixed Direct Debit customers typically build up a credit (CR) in the summer and may go into debit (DR) over winter.
We go into more detail about reading your electricity and gas bill.
Your energy price has changed.
If you’re on a standard variable tariff, your energy price is determined by the price cap. Any changes to the price cap may affect your energy prices, meaning that your energy bills could increase or decrease.
To account for these changes your Direct Debit amount may need to be adjusted. Learn more about the price cap.
Protected by the Direct Debit Guarantee.
You can rest assured knowing that all Direct Debit payments are protected by the Direct Debit Guarantee.
But what does this mean? It means that when there’s a change to the amount, payment date, or frequency, you’ll get a notification at least five working days before a payment is due. If you ever want to cancel your DD, you can whenever you like. And perhaps the most reassuring part — if there’s ever an error in one of your payments, you’ll receive a full and immediate refund.
Learn more about the Direct Debit Guarantee, including what’s not covered.
Managing your Direct Debit.
Whether you want to join E.ON Next today or make changes to your existing account, there are plenty of ways to get started. You can also get in touch with us if you need some extra support — don’t worry, we’ve got you covered.
Getting set up.
Setting up a Direct Debit with us is easy. If you're a new customer, you can set up your DD when you register with us. If you’re an existing customer, you can manage your DD through your online account. Visit our website to get a quote or log in to your account to get started.
Managing your account online.
When you want to manage your DD, you can do it in your online account or through our app. Once you’ve logged in you can change your payment date, update your bank details and more. Simply log in to your account to view your payment history, adjust your payment amount, and update your bank details.
Be mindful of your energy use.
Finally, remember to manage your energy usage to avoid any nasty surprises on your bill. As we’ve mentioned, the more you turn the heating on or forget to turn off the hallway light, the higher your bill could read. Whether you’re on a fixed or variable DD, using more energy means higher payments.
Discover our top energy-saving tips to help curb your energy use and get you into the green.
Feel the Community power.
The E.ON Next Community is a space for customers to share experiences and offer advice. Find support or suggest your own energy topics, plus get involved in discussions on the latest energy news.