How does my supplier calculate my initial Direct Debit? – Switchd Support

This article explains how your energy supplier calculates your initial direct debit amount. Suppliers base this on how much energy they estimate you will use in a year.

This article covers:

Initial calculation

Energy suppliers will set up a monthly Direct Debit when you first join them. The amount is based on an estimate of how much energy your property will use in the next 12 months. The supplier will then calculate how much you would spend based on that usage for 12 months and then divide it by 12 so that you pay the same amount each month. This means that even though you may use more energy in the winter and less in the summer, at the direct debit will cover your usage.

Energy usage information is provided by the customer in 3 possible ways as discussed below.

Estimated Annual Usage found on your bill

Your current supplier would have calculated an estimate of the amount of energy you will use in the next 12 months. This calculation takes many things into account including past meter readings, estimated meter readings and predictions of the use for the the UK in general. This is usually the most accurate usage information for you, so we recommend our members to ensure the figures we hold for you matches the ones your supplier has. You can see which information we're using for you at any time by looking at the 'Deal Details' page in your Switchd dashboard.

Estimated annual usage information can be found on every bill. You may refer below for an example of where to find it:

Estimated annual usage can be named slightly differently depending on your supplier. For example, "estimated annual consumption", or "estimated yearly usage". The figure will always be in kWh.

Monthly Spend

If you don't have your estimated annual usage from an energy bill, your usage can be estimated based on your average monthly spend and the name of your current tariff. With these two pieces of information your energy usage can be calculated.

UK Average

If you don't have a bill or know how much you spend monthly (maybe you've just moved into a new house), a rough estimation of how much energy you will use in the next 12 months can be made based on the size of your property and the UK household energy use.

What happens if my supplier has overcharged me?

If you think you are being overcharged by your supplier, make sure to send your supplier recent meter readings through your Switchd dashboard. They will then be able to adjust your bill and any over payments in your account will be shown as credit. You can then contact them to request a refund or to lower your direct debit amount.

Similarly, if you notice your account is in significant debt, you can contact your supplier to adjust your direct debit to a suitable amount.