UnBILLievable: A third of households believe their energy bill direct debit is set higher than it needs to be
With energy prices falling and suppliers sitting on £7 billion in credit[1], one in three households (31%) believe their direct debit is higher than it needs to be[2]
Less than half of consumers (48%) without a smart meter send a monthly reading to their supplier, with Sheffield residents the most lax[3]
Almost half of households (45%) believe their direct debit was last reviewed over three months ago[4], with one in three (31%) requesting a review in the last year[5]
Customer satisfaction with billing has fallen 14% since the beginning of the energy crisis[6]
Each supplier reviews direct debits differently, SSE and EDF Energy review direct debits every six months, while E.ON Next checks them with every bill[7]
Uswitch.com calls on customers to keep an eye on their energy direct debits and request a review if payments don’t reflect their usage.
Nearly a third of households (31%) believe their energy direct debits are set higher than they need to be[2], despite falling prices and suppliers previously holding £7 billion of customers’ credit[1], according to new research by Uswitch.com, the comparison and switching service.
Suppliers use households’ meter readings to estimate the cost of their energy consumption for a whole year, which they then split into 12 equal monthly payments for customers paying by direct debit.
Uswitch revealed in April that the number of households in credit had risen by five million to 16 million, and that more than half of bill-payers were in credit by over £200[1] – suggesting that direct debit payments might not accurately reflect their energy use.
With price-capped energy bills set to rise or fall every three months, it is important that consumers pay close attention to their energy use and payments to ensure they are being billed the right amount.
Submitting regular meter readings is one of the best ways to do this, but less than half of households without a smart meter (48%) send a monthly reading to their energy supplier[3].
Nottingham has the highest proportion of households who update their supplier with meter readings once a month, with nearly three in five (59%) regularly providing updates. Sheffield residents are the most lax, with only two in five (42%) updating their energy provider monthly[3].
| Location | % of standard meter users who send monthly readings |
|---|---|
| Nottingham | 59% |
| Norwich | 58% |
| Liverpool | 55% |
| Edinburgh | 55% |
| Plymouth | 50% |
| Southampton | 50% |
| London | 48% |
| Leeds | 48% |
| Birmingham | 48% |
| Newcastle | 48% |
| Manchester | 48% |
| Cardiff | 48% |
| Glasgow | 46% |
| Bristol | 45% |
| Brighton | 43% |
| Sheffield | 42% |
Source: Uswitch.com
Consumers who believe their direct debits are set too high can contact their supplier to ask them to review their payments. A third of bill-payers (31%) have asked their supplier to review their direct debit in the past year[5].
Almost half of households (45%) say they last had their direct debit reviewed more than three months ago, while 16% last had a review between four and six months ago. Nearly one in ten (8%) last had their direct debit reviewed between six and 12 months ago[4].
Customer satisfaction with billing has fallen 14% since the beginning of the energy crisis. In 2021, nearly 75% of customers were happy with how they were billed, but this has now dropped to only 60%[6].
Some suppliers review direct debit amounts more frequently than others, with some checking every three months, some every six months and others keeping accounts under constant review[7].
| Supplier | Frequency of direct debit reviews |
|---|---|
| British Gas | At least once a year |
| E.ON Next | Automatic review with every bill |
| EDF Energy | Twice a year |
| Octopus Energy | Automated ‘health checks’ run in the background |
| Ovo Energy | Every three months |
| Shell Energy | Every three months |
| So Energy | Twice a year |
| SSE | At least twice a year |
Source: Uswitch research into supplier direct debit review cycles. See notes for references [7]
With the price cap changing on a quarterly basis, Uswitch is calling on energy customers to keep an eye on their direct debit, and ask for a review if their payments don’t match their usage.
Natalie Mathie, Uswitch energy expert, comments: “Consumers are still paying historically high prices for their energy, so it is crucial that direct debits match usage as accurately as possible.
“Millions of households came out of last winter with high levels of energy credit, suggesting many direct debits are set higher than they need to be.
“With the energy price cap changing every three months and many people’s finances stretched to the limit, it is vital that customers keep an eye on their direct debits and ask for them to be reviewed if they don’t match their usage.”
Uswitch’s tips for ensuring bills are accurate
1. Provide regular meter readings if you don’t have a smart meter. This ensures your bills are accurate and makes it easier for your supplier to modify your direct debit to match your usage.
2. If you are building up too much credit, get in touch with your supplier to ask them to review your direct debit payments. You may also want your provider to return some of the credit.
3. Check your monthly direct debit payments reflect your annual usage, and contact your supplier if they don’t. You can monitor how much energy you are using by using Utrack, a free mobile app that offers regular insights into your energy use and provides useful tips on how to cut bills.
Track your energy usage with Utrack by Uswitch here.
Notes
Research conducted online by Opinium, 31st March-5th April 2023, among 2,003 UK energy bill-payers, weighted to be nationally representative.
1. Uswitch research.
2. Respondents paying for their energy bills via direct debit were asked ‘Do you believe your direct debit (the amount you’re asked to pay) is higher than it should be?’ 31% said ‘yes’, 42% said ‘it’s fairly accurate’, 16% said ‘no’, 10% said ‘don’t know’.
3. Respondents were asked ‘how often do you tend to provide a meter reading to your energy supplier?’ 4% said ‘more frequently than once a month’, 28% said ‘once a month’, 8% said ‘every other month’, 12% said ‘once a quarter’, 4% said ‘once every six months’, 2% said ‘once a year’. 4% have never provided their energy supplier with meter readings, and 35% have a smart meter. 48% of households without a smart meter send a monthly reading to their energy supplier. See table for regional breakdown.
4. Respondents were asked ‘when was your direct debit amount last reviewed?’ 20% said ‘last 30 days’, 15% said ‘about two months ago’, 16% said ‘about three months ago’, 16% said ‘between four and six months ago’, 8% said ‘between seven and 12 months ago’, 5% ‘don’t know’.
5. Respondents were asked ‘have you asked your supplier to review your direct debit amount in the last year’? 31% said ‘yes’, 69% said ‘no’.
6. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 17,580 adults. Fieldwork was undertaken between 28th March - 26th April 2023. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). Respondents were asked ‘overall, how satisfied are you with each of the following?’ When asked about ‘billing services provided by your energy supplier’, 12% said ‘very satisfied’, 35% said ‘fairly satisfied’, 29% said ‘neither satisfied or dissatisfied’, 9% said ‘fairly dissatisfied’, 7% said ‘very dissatisfied’, 8% said ‘don’t know’. The same question was asked in 2020, 2021 and 2022. In 2021, 74.6% were satisfied with their billing services, 64.2% were satisfied in 2022 and 60.4% were satisfied in 2023.
7. Uswitch analysis of supplier websites.
British Gas: https://www.britishgas.co.uk/help-and-support/bills-and-payments/setting-up-a-direct-debit
E.ON Next: https://www.eonnext.com/help/bills-and-payments
EDF Energy https://www.edfenergy.com/help-support/faq/budget-direct-debit-regular-monthly-payments-how-your-reviews-work?steps=24807-24806-24811#node-24811
Octopus: https://octopus.energy/blog/direct-debit-payments/
OVO: https://www.ovoenergy.com/help/article/setting-up-direct-debits
Scottish Power: https://www.scottishpower.co.uk/support-centre/direct-debit
So Energy: https://help.so.energy/support/solutions/articles/7000046258-how-do-you-review-my-payments-
Shell Energy: https://help.shellenergy.co.uk/hc/en-us/articles/360007459778-How-is-my-monthly-Direct-Debit-calculated-
SSE: https://sse.co.uk/help/bills-and-paying/direct-debits
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.