How to pay energy bills

Key takeaways

• Paying by direct debit is usually the easiest and cheapest way to manage your energy bills

• Prepayment meters let you pay as you go but are often the most expensive option

• You can choose to pay on receipt of your bill if you prefer manual payments

• Government schemes and supplier support are available if you’re struggling to pay

• Comparing energy deals on MoneySuperMarket could help you find a better deal

Paying your energy bills doesn’t have to be complicated. Whether you prefer automatic payments, pay-as-you-go meters, or paying when your bill arrives, there’s an option to suit you.

Ways to pay your energy bills

Direct debit

Paying by direct debit is the most common and often the most affordable way to pay for your energy. Your supplier automatically collects money from your bank account each month or every three months.

Monthly payments are usually based on your estimated annual usage, so you pay a set amount each month. This helps spread the cost of energy evenly throughout the year.

Pros:

• Convenient and automatic

• Often includes a discount from your supplier

• Easier to budget as payments stay consistent

Cons:

• Payments are based on estimates, so you may overpay or underpay

• You could end up with credit or debt on your account

• Refunds or adjustments may take time when switching suppliers

Monthly vs quarterly

Monthly direct debits are the most popular option. Some suppliers, such as British Gas, still offer quarterly direct debit payments based on your actual usage. This can mean bigger, less predictable bills.

Paying on receipt of bills

With this method, you receive your bill first, then pay manually. You can pay online, by phone, through your supplier’s app, by bank transfer or at a Post Office or PayPoint. Bills are usually sent monthly or quarterly depending on your supplier.

You’ll pay only for the energy you’ve actually used, based on your meter readings or data from your smart meter.

Pros:

• You control when and how you pay

• You’re charged for actual energy use

• No risk of overpaying through fixed direct debit

Cons:

• You need to remember to pay on time

• Fewer discounts than paying by direct debit

• Late payment can lead to charges or affect your credit score

This method can suit those who prefer flexibility or who move home often, but it usually works out more expensive than direct debit.

Prepayment meters

Prepayment meters let you pay for your gas and electricity in advance by topping up a key, card or app. You can top up:

• At PayPoint, PayZone or Post Office locations

• Online or through your supplier’s app

• Automatically if you have a smart prepayment meter

Pros:

• Helps you avoid building up debt

• You stay in control of what you spend

• Works well for short-term lets or shared homes

Cons:

• Usually the most expensive payment method

• Your energy supply can stop if you run out of credit

• Can be inconvenient if you can’t top up easily

Suppliers must now follow strict Ofgem rules before installing prepayment meters and can only do so as a last resort.

Help if you’re struggling to pay

If you’re finding it difficult to keep up with your energy bills, support is available from both the government and your supplier.

Government help

• Winter Fuel Payment: A tax-free payment of £100 to £300 to help people of state pension age with heating costs.

• Cold Weather Payment: £25 for each seven-day period when the average temperature in your area is 0°C or below, between 1 November and 31 March.

• Warm Home Discount: A £150 credit automatically applied to eligible customers’ energy accounts.

• Fuel Direct: Lets you pay energy bills directly from certain benefits such as Universal Credit or Pension Credit.

Supplier support

Many energy suppliers offer social tariffs, hardship funds, fllexible payment plans, and energy efficiency advice.

If you’re worried about paying, contact your supplier as soon as possible. They’re required by Ofgem to help you set up an affordable repayment plan.

You can also get free advice from Citizens Advice and join the Priority Services Register if you need extra support due to health, accessibility or safety reasons.

Tips for managing your energy payments

• Submit regular meter readings or use a smart meter for accurate bills.

• Review your direct debit amount every few months.

• Track your usage through your supplier’s online account or app.

• Contact your supplier early if you’re struggling to pay.

Switching to save

If you think you’re paying too much, it might be time to switch. Comparing energy tariffs on MoneySuperMarket can help you find a better deal that fits your budget and usage.

Your switch is protected by the Energy Switch Guarantee, which means it will be completed within 21 days without any interruption to your energy supply.