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How We Review Your Payments

We are required by Ofgem to regularly review your payments to ensure you're not paying too much or too little for your energy. This should be completed at least once every 12 months. Your initial payment is calculated based on the energy usage you provided for the year. However, energy usage can vary over time, so if you're using more or less than expected, we adjust your payments accordingly.

This guide explains the factors we consider when reviewing your payments.

The Three Factors We Consider When Reviewing Your Payments

1. Your Estimated Energy Usage in kWh

For every meter in your property, we estimate how much energy you'll use over the next 12 months. This estimate, known as Estimated Annual Consumption (EAC) for electricity, is determined by independent industry validators based on your property’s historical energy usage.

The accuracy of this estimate improves when you (or your smart meter) submit regular readings. If you haven’t submitted a meter reading recently, please do so before contacting us about your payments.

You can view your estimated energy usage on your bill. While the estimate may not always be exact, frequent readings ensure it aligns closely with your actual usage by the end of the year.

2. Your Tariff (Unit Rates and Standing Charges)

Your energy costs depend on:

  • Unit rate: The cost per kilowatt hour (kWh) of energy.
  • Standing charge: A daily fixed cost, regardless of energy consumption.

We calculate your expected energy costs by multiplying your estimated annual usage by your tariff’s unit rates and add daily standing charges for the next 12 months. This calculation is done separately for each meter in your property and the cost is then divided equally for the next 12 months to give the regular direct debit amount.

If you're on our variable tariff, the calculation uses our current variable rates in line with the Ofgem Price Cap.

You can find your tariff details, including unit rates and standing charges, on your bill or in your online account under "Tariffs" (VAT is already included online).

3. Your Account Balance
  • If You’re in Debit
    Any outstanding balance is added to your annual usage cost, spreading repayment across your monthly payments.
  • If You’re in Credit
    Your account needs a minimum balance, called the target account balance, to offset seasonal fluctuations and prevent underpayment.
    • Winter: The target balance is two months' worth of payments.
    • Summer: The target balance is one month’s worth of payments.

Please note: If your account balance is based on estimates (due to a lack of meter readings), it may not reflect your actual usage. Submitting up-to-date readings or installing a smart meter can help improve accuracy.

 

 

What Happens Next?

After reviewing your payments:

  • You’ll receive an email detailing the changes and when they will take effect (a minimum of 10 working days' notice)
  • You’ll have time to prepare or provide additional information (e.g., updated meter readings).
  • If no changes are required your direct debit will remain unchanged.

 

 

Winter FAQs

Why Is My Direct Debit Increasing Even Though I’m in Credit?

  • Energy usage typically rises during the winter. We aim to maintain a credit balance leading into winter to cover higher consumption.
  • Even if your account shows a credit balance, it may not be sufficient to offset the higher costs of winter, requiring an increase in payments.

Why Doesn’t My Direct Debit Calculation Include All My Credit?

  • Some credit is set aside as a safety net to account for the higher and more variable energy usage during winter months.

 

 

For further assistance

By periodically reviewing your payments, we ensure they reflect your actual energy usage while keeping your account in good standing year-round. For more details or assistance, please don’t hesitate to contact us.

 

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