I am on a fixed tariff, why do you take my payments in advance?
We ask customers to pay in advance for their energy because we pay in advance for their energy. To offer customers a fixed price for a year or longer, we buy or secure the majority of the energy they tell us they’ll need for the length of their contract in advance, before they’ve used it.
We then charge customers an equal amount each month. This means over the full contract in some months customers will use more energy than they’ve paid for and in others use less, and this should balance out over the contract term. We believe this helps customers with budgeting because it should prevent customers receiving high bills in some months and low bills in others.
We use meter readings, weather information and other industry data to reassess customers accounts and payments at least twice a year to help us make changes to Direct Debit amounts (up or down), however on a fixed contract the actual price customers pay for the units of energy won’t change. The Direct Debit amount will only change if customers use more or less energy than they told us.