Paying for business energy bills in the UK may be a source of anxiety for most small business owners, but there are surprisingly many different ways to pay for your business energy bills. Some can be an expensive option, while others may be quite flexible and easier to put in place.
Alternative options may also be available, depending on your business energy supplier.
The most common method of payment is direct debit, which you can choose to pay monthly or quarterly. You are also allowed to pay each time you receive your utility bill, which is usually every three months.
Paying your business energy bill by direct debit is the most efficient method of payment. The option of paying monthly or quarterly will also be available. Whatever works for you.
The whole point of paying through direct debit is that you do not necessarily have to worry about making the payments yourself. If you have enough money in the bank account you are using to pay your bills – you are ready to go. It takes the hassle out of keeping up-to-date with payments and lessens your risk of missing a payment as well.
Direct debit is a pretty straightforward payment method. Automatic payments will save you time. The best part is, avoiding the 5% surcharge will save you money. This is a perk for non-direct debit payments.
You can choose either variable or fixed DD.
1. Variable Direct Debit
The full amount you owe your energy provider will be collected 14 days after the date of your utility bill.
2. Fixed Direct Debit
The agreed amount will be collected from your bank account on the same date of each month. You will be informed in advance by your provider in case the monthly amount has changed.
If you are comfortable with choosing the monthly debit option, the payment of your utility bills will be taken from your bank account during the same time of each month. Your provider will then divide the estimated amount of your entire year’s worth of energy consumption across 12 months.
Please note, however, that the amount you pay monthly will not reflect the exact amount of energy you have consumed during the period. There will be cases where your energy consumption will fluctuate (which will usually occur during seasonal changes, such as during the colder months).
This means you’ll probably end up either over or underpaying your business energy bill every month. If you do end up overpaying your bill:
- Your account will get enough credit that you can use to reduce your monthly bills
- You can use the credit to cover the costs during the months in which you consume more energy
- You can claim the excess amount from your provider if you ever decide on switching
On the other hand, if you end up underpaying, your energy account will accumulate debt, which could, unfortunately, result in your supplier increasing your monthly fees to compensate for the debt.
If your debt increases, your energy provider has the right to prevent you from switching suppliers or tariffs until you have settled your business energy debt.
This method works about the same way as monthly payments – the only difference is that the payment is taken from your bank account every three months.
Naturally, the payments will be higher, but the total cost will be similar to a monthly method.
Both monthly and quarterly DD options are fairly common and preferred by most energy consumers (domestic and business users alike) as they result in cheaper costs.
Keep in mind that most energy suppliers offer discounts to consumers who pay via DD.
Switching energy suppliers
If you’re experiencing overpriced business energy, despite using one of the best methods of payment – then maybe it’s time to compare energy tariffs on BetterBusinessQuotes which will make the switch an absolute breeze!
It is common knowledge that switching suppliers will help consumers save thousands of pounds on their energy bills.
To start, all you have to do is fill out the form located on top of our website. Tell us a little about your business (location, current provider, your budget/requirements, etc). We want your billing to be as accurate as possible, so we can provide you with a flawless list of quotes that are tailored to your business needs and requirements.
Comparing business energy bills doesn’t have to be a chore. We can do all the legwork for you!