In this article, we explain why the monthly Direct Debit amount can change. If you are looking for an article about why there is a credit or debit balance on the account, click here.
- How is my Direct Debit calculated?
- What is the best way to avoid a Direct Debit increase?
- Why is my new switch more expensive than my old one?
How is my Direct Debit calculated?
Energy suppliers will set up Direct Debit at the very beginning of your switching journey. The monthly payment amount is calculated based on how much energy the supplier estimates you to use for the whole year.
This calculation will take into consideration lower energy usage through the summer months and higher usage (such as heating) through the winter months. If your energy needs have changed, the original Direct Debit amount might not be enough to cover the increased usage.
It is important to keep an eye out for any potential Direct Debit increases. The energy supplier will notify you in writing at least 10 days before altering the payments.
Rest assured, the pricing of your fixed energy deal will stay the same until the official contract end date!
What is the best way to avoid a Direct Debit increase?
Providing regular meter readings will allow your energy supplier to track usage changes and amend Direct Debit as soon as needed. It can also prevent an outstanding balance from building up on the account.
The best way to submit your meter readings is by using the Switch dashboard. Simply select the 'Meter readings' function from the sidebar on the left, enter the figures, and our system will automatically send a notification to your energy supplier!
Why is my new switch more expensive than my old one?
Energy prices are changing all the time. If you are at the end of your fixed-term contract, the market may not be able to beat your current rate. To prevent the energy supplier from moving the account onto an ever more expensive plan after your rate expires, we will switch you to the cheapest deal available!
We will calculate the switch savings based on the information on your Switchd account. If in doubt, please check your Switch dashboard 'Tariff pricing' page (from the sidebar on the left) and let us know if there are any discrepancies by sending an email to email@example.com!