Switch to monthly direct debit to save £90

Paying by monthly direct debit can cut bills by up to £90 each year, as companies are sure you won't default and they earn interest on any overpayments. So if you can do this, go for it.

Yet direct debits are usually based on an estimate of your usage. If that's wrong, you can end up over (or under) paying each month. Remember, even if you're on a fixed tariff, your direct debit can go up if your supplier thinks you'll use more energy.

Want to pay a fixed amount each month?

Some suppliers – including British Gas, E.on and Green Star Energy* – now offer so-called 'unlimited' tariffs, where you pay a fixed amount each month, regardless of how much energy you use.


Prices are based on what you used the year before, but they're not cheap. If you use the same, you'd be better with a cheap deal. Where they're good is if you are likely to use much more and are worried about the bill - for example, you've retired and are now at home all day.

But remember, these are one-year deals and the price depends on what you've used in the past. If your consumption does increase during your first year, your direct debit is likely to be higher if you go for the same deal again