Why does it cost more to pay by a non direct debit payment, I mean what extra work is required to say paying by a standing order ?.

I don't think it can be justified, other than if you pay by debit or credit card, they would incur a transaction fee.

They offer a discount for DD because it is a continuing authority which they can adjust payments on, after giving notice.

I don't think it can be justified, other than if you pay by debit or credit card, they would incur a transaction fee.

 

They offer a discount for DD because it is a continuing authority which they can adjust payments on, after giving notice.

So a direct debit could be set up for any amount ?.

So a direct debit could be set up for any amount ?.

It needs to relate to your usage over a year. So if they work out your usage costs £600 a year, they might want to collect say £60 a month. They usually want a small credit to be built up, so collecting an extra £10 a month above approx usage, just in case the weather is colder and you use a bit more. It saves adjusting the DD several times.

If any DD proved to be set too high, you can ask them to reduce. Or if a credit balance was a bit too much, you can ask for it to be refunded.

Thank you for you input, I can't see why a standing order is not allowed the same discounts as a direct debit as no extra work is needed or have I missed something ?.

A customer can cancel a standing order or adjust it at any time. Likely to cost more to administer than a DD scheme, because with DD customers are less likely not to pay, as if they go overdrawn their Banks will charge fees.

But i understand why people don't like DD.

If you don't use much energy, there are smaller energy companies like Robinhood Energy, who might be worth looking at.

Why does it cost more if not paying by direct debit and what are these fees ?.