Most households pay for energy by monthly Direct Debit. Some people prefer to pay for exactly what they've used each month or quarter, rather than a fixed amount.

How Direct Debit payments are worked out

Suppliers usually offer one or more of these options:

• Fixed monthly Direct Debit: your supplier estimates your yearly usage and spreads the cost evenly. You may build up credit in summer and use it in winter.

• Seasonal or weighted Direct Debit: payments are higher in autumn and winter and lower in spring and summer.

• Variable Direct Debit: you pay for the energy you actually used in each billing period, so the amount changes from month to month.

Whichever option you choose, you're billed for what you actually use. With a fixed Direct Debit, using less energy means you build up credit, which your supplier should take into account when it reviews your payments.

Your rights with Direct Debits

Ofgem rules say suppliers must base fixed Direct Debit amounts on accurate, up-to-date information. You can:

• ask your supplier to review your Direct Debit if you think it's too high

• ask for a refund of any credit on your account at any time

Getting bills based on actual usage

• Smart meters send readings automatically, so bills are based on your actual usage. Many suppliers can install one at no extra cost.

• Without a smart meter, giving regular meter readings (for example, each month) keeps bills close to your actual usage.

• Quarterly billing: some suppliers offer quarterly bills paid by Direct Debit or on receipt. If it isn't offered online, you can ask your supplier.

Payment options and prices vary by supplier and tariff. Some tariffs are only available with certain payment methods, so check before changing.

READ MORE:

• Average Cost of Electricity per kWh in the UK