Which energy payment method is usually cheapest?

Monthly Direct Debit is often priced lower because it helps suppliers manage payments and reduces admin costs. However, the cheapest option depends on your tariff and usage—check your unit rate and standing charge for each payment method before deciding.

Will changing my payment method change my tariff or rates?

It can. Some tariffs have different versions for different payment types, meaning your unit rate and standing charge may change when you switch payment method. Ask your supplier to confirm the new rates in writing (or in your online account) before the change is applied.

How do I change my energy payment method?

Usually you can switch payment method in your online account, via your supplier’s app, or by calling customer service. You’ll typically need your bank details for Direct Debit, and you may be asked to provide an up-to-date meter reading so your balance is accurate.

Can I change from prepayment (PAYG) to Direct Debit?

Often, yes—moving from prepayment to credit (e.g., monthly Direct Debit) may be possible and can be cheaper, but it depends on your supplier’s eligibility checks, your meter type, and whether there’s any outstanding debt. Your supplier may need to replace or reconfigure your meter.

Are there any fees or downsides to switching payment method?

There’s usually no fee, but potential downsides include needing a credit check, changes to your tariff rates, or paying a different amount each month if your Direct Debit is reassessed. If you’re in credit, your supplier may keep a buffer to cover higher winter usage.

Will switching to Direct Debit affect my credit score?

Setting up a Direct Debit itself doesn’t typically affect your credit score, but some suppliers may run a credit check when moving from prepayment to credit billing. If you’re unsure, ask your supplier whether a credit check is required and what type it is.

What should I check before changing my payment method to save money?

Compare the unit rate and standing charge for each payment method, check any discounts or fees, confirm whether your tariff name changes, and review your current balance. Submitting a recent meter reading can help ensure the switch doesn’t create an inaccurate bill.

If I’m struggling to pay, can changing payment method help?

It may. A monthly payment plan (such as Direct Debit) can spread costs more evenly, but if you’re in difficulty it’s also worth asking about repayment plans, emergency credit (for prepayment meters), or support schemes. Contact your supplier as early as possible to discuss options.

Can I change my energy payment method to save money in the UK?

Q: Can I change my energy payment method to save money in the UK?

Yes. Many UK suppliers price tariffs differently depending on how you pay (for example, monthly Direct Debit vs paying on receipt of bill). Switching to a cheaper payment method can reduce your ongoing energy costs without changing your supplier. Always confirm any charges, discounts, and credit checks before you switch.

Yes. Switching your payment method (Direct Debit, pay on receipt, prepayment meter) can change your unit rates, standing charges and discounts. Compare whole-of-market home energy deals with EnergyPlus and see which payment option could cut your bills.

See whether Direct Debit discounts beat pay-on-receipt pricing
Check if a smart prepayment tariff is cheaper for your usage
Compare whole-of-market tariffs for your postcode and meter type
Switch with confidence: clear steps, no jargon

Compare deals & payment methods How changing payment works

Home energy only. Comparing tariffs and payment options is free. Availability depends on your meter type, supplier and credit checks where applicable.

Compare tariffs by payment method (whole-of-market)

Energy suppliers can price the same tariff differently depending on how you pay. A Direct Debit plan may include a discount, while pay-on-receipt (cash/cheque/card) can be higher. Prepayment tariffs vary too, and smart prepay can sometimes be competitive.

Use the form to compare home energy deals for your postcode and meter type. We’ll show options for different payment methods where available, so you can choose what fits your budget and lifestyle.

Quick answer: will changing payment method save money?

Often, yes — Direct Debit commonly has lower rates than pay on receipt.
Sometimes — prepayment can be competitive depending on supplier and smart meter support.
Not always — if Direct Debit estimates are wrong, you could build up credit or face catch-up payments.

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What does “changing payment method” mean for UK energy bills?

In the UK, your energy payment method is how you pay your supplier, and it can affect:

Your tariff price

Some suppliers offer lower unit rates or discounts for monthly Direct Debit compared with paying on receipt.

How predictable payments are

Direct Debit spreads costs across the year, while pay-on-receipt can spike in winter. Prepay helps control spend but can be higher per unit.

Eligibility & checks

Some payment options require a credit check or a compatible meter (especially smart prepayment tariffs).

Important: Changing your payment method is different from switching supplier. You can sometimes change payment method with your current supplier, but the biggest savings often come from comparing tariffs across the whole market and choosing the best price for the payment method you want.

Why changing energy payment method can save money

Savings depend on your tariff, supplier and meter. Here are the most common reasons UK households see lower costs after changing how they pay.

Direct Debit discounts

Some tariffs have lower rates for monthly Direct Debit because payments are regular and cheaper for suppliers to process.

Avoiding higher “standard” pricing

Pay-on-receipt and some legacy prepay arrangements can be priced higher than comparable credit-meter tariffs.

Better match to your cashflow

If winter bills are hard to manage, spreading costs with Direct Debit can reduce late fees and stress (and help avoid arrears).

Smart prepay options

With a smart meter, some suppliers offer top-ups by app and competitive rates compared with traditional key/card meters.

Fewer estimated bills

Moving to smart readings and a suitable payment method can reduce surprises from catch-up bills after estimates.

Switching tariff at the same time

Comparing whole-of-market deals often unlocks a better unit rate than a payment change alone.

To take action now, use the comparison form and select your current payment method so we can prioritise relevant options.

How to change your energy payment method (UK steps)

The exact process differs by supplier and meter, but most households follow these steps. If you’re unsure, comparing and switching can be simpler because your new supplier will guide you through setup.

Check your current tariff and meter type
Look at your latest bill or online account to confirm whether you’re on a credit meter, smart meter, Economy 7, or prepayment.
Compare the cost across payment methods
For many tariffs, suppliers show different pricing for Direct Debit vs pay-on-receipt. Whole-of-market comparison helps you see alternatives in one place.
Decide: change with your supplier, or switch supplier
If your supplier offers a better price for your preferred payment method, you may be able to change without switching. If not, switching can unlock better rates.
Set up the new payment method
Direct Debit usually needs bank details. Prepayment changes may involve a meter update or smart meter configuration.
Check your first bill and keep an eye on credit
With Direct Debit, make sure the monthly amount matches your usage; request a review if you’re building up too much credit or falling behind.

When changing payment method won’t reduce your bill

If your unit rate and standing charge stay the same, changing payment method may mainly affect how you budget rather than the total cost. The strongest savings usually come from pairing a payment change with a tariff comparison.

UK energy payment methods: pros, cons and who they suit

Here’s a practical overview of the common ways to pay for home gas and electricity in the UK. Prices and availability vary by supplier and region.

Payment method	How it works	Potential cost impact	Best for
Monthly Direct Debit	A fixed amount each month based on estimated annual usage; adjusted over time.	Often lower tariff pricing and fewer fees; watch for overpaying/large credit balances.	Households wanting predictable payments and possible discounts.
Pay on receipt	You get a bill (often quarterly or monthly) and pay what you owe.	Can be priced higher than Direct Debit equivalents; winter bills can be large.	People who prefer to pay for actual usage and manage cashflow seasonally.
Prepayment (key/card)	You top up before you use energy, usually at PayPoint/Payzone or via voucher.	Rates vary; can be higher than credit meter deals, but not always. Risk of self-disconnection if you can’t top up.	Budgeting tightly and controlling spend; renters with existing prepay meters.
Smart prepayment	Prepay mode on a smart meter with app/online top-ups and near real-time balance.	Sometimes competitive; easier top-ups and fewer trips to shops. Availability depends on smart meter setup and supplier.	People wanting prepay control with more convenience.

Direct Debit: how to keep it fair

Submit regular meter readings (or use smart readings) so estimates stay accurate.
If you build up significant credit, ask for a review or refund.
If you’re underpaying, increase Direct Debit early to avoid a catch-up bill.

Prepayment: when it can be a good move

You prefer paying little-and-often and want tight control of spend.
Your supplier offers a competitive smart prepay tariff for your meter.
You’re clearing arrears under an agreed plan (always ask for support if struggling).

If you want to see which tariffs are cheaper for your payment preference, go back to Compare & apply.

What savings should you expect?

There’s no single answer because UK energy costs depend on your tariff, meter, region and usage. But these are realistic places savings come from when you change payment method (and/or switch).

Lower unit rates

Some suppliers price Direct Debit tariffs more keenly, reducing pence-per-kWh for gas/electricity.

Lower standing charges

Standing charges can differ between tariffs. Comparing across the market is the quickest way to spot a better overall deal.

Avoiding penalties & arrears costs

A more manageable payment setup can help you stay on track and reduce the risk of missed payments.

Tip: don’t judge by monthly Direct Debit alone

A lower monthly Direct Debit doesn’t always mean a cheaper tariff. Focus on the unit rate, standing charge, and whether the monthly amount is based on accurate readings.

Regional and meter considerations (England, Scotland & Wales)

Your rates can vary by region, and certain meters affect which tariffs and payment methods are available.

Economy 7 / multi-rate meters

If you have Economy 7 (or other multi-rate), your off-peak usage pattern matters. Some payment-method discounts apply only to certain tariffs, so it’s worth comparing like-for-like.

Prepayment infrastructure

Traditional key/card meters can limit tariff choice. If you have (or can get) a smart meter, you may have access to smarter top-up options and broader tariffs.

Not sure what meter you have? Use the comparison form and select Not sure for meter type — we’ll help you identify suitable options when reviewing deals.

Common mistakes when changing energy payment method

Only comparing monthly payments

Monthly Direct Debits can be estimates. Always compare the tariff’s unit rate and standing charge.

Not updating meter readings

Old readings lead to inaccurate Direct Debit amounts and surprise bills. Submit readings or use smart readings.

Switching payment method without checking tariff

Your supplier may change the payment plan but keep the same tariff. You could still be overpaying vs market alternatives.

Ignoring exit fees and terms

Some fixed deals have exit fees. Check terms before switching supplier, especially mid-contract.

Assuming prepay is always expensive

Traditional prepay can cost more, but smart prepay and certain tariffs can be competitive depending on availability.

Not asking for help if struggling

If you’re in arrears or at risk of self-disconnection, contact your supplier to discuss support options and repayment plans.

Want a quick, tailored view? Compare deals & payment methods using your postcode.

FAQs: changing energy payment method in the UK

Is Direct Debit always the cheapest?

Not always, but it’s often cheaper than pay on receipt for the same supplier and tariff. The best approach is to compare whole-of-market tariffs for your postcode and meter type.

Can I change from prepayment to Direct Debit?

Sometimes. It depends on your meter, property, and whether there’s debt on the meter. Some suppliers require a credit check or a meter exchange to move to a credit meter.

Will changing payment method affect my credit score?

Changing payment method itself typically doesn’t, but some suppliers may run checks for certain tariffs or credit meter setups. Missed payments can affect your credit record depending on how accounts are reported.

Can I switch supplier if I’m on a prepayment meter?

Often yes, though options can be more limited with traditional prepay. If you have a smart meter, you may have more choice. If you owe money, switching can be restricted depending on the amount and rules.

Can my supplier refuse to let me pay by Direct Debit?

They may limit certain tariffs or payment methods in some circumstances (for example, where there are arrears or failed payments). If you’re refused, comparing alternative suppliers and tariffs can help.

How long does it take to change payment method?

A Direct Debit change can be quick once bank details are set up, but billing cycles can affect when it shows on your account. If a meter change is needed (e.g. prepay to credit), it can take longer.

Still not sure what will save you money?

Use our comparison form and choose your current payment method. We’ll help you identify cheaper tariffs that match how you want to pay.

Ready to see if a different payment method is cheaper?

Compare whole-of-market home energy tariffs for your postcode and meter type, then choose the payment option that fits your budget.

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No scripts on this page. Switching guidance depends on supplier terms, meter compatibility and any outstanding balance.

What you’ll need

Postcode
Current payment method
Meter type (or best guess)
Email for results and next steps

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Updated on 8 Jan 2026