Finding the Best Way to Pay Your Energy Supplier: Payment


Whether you are a domestic household or larger business, paying for your energy supply is a significant expense, and finding the best way to pay for it is important for several reasons. While business owners and private renters are currently struggling to pay the full amount on all of their bills, we look to highlight the most popular payment methods suppliers may offer you, so you are able to find the most suitable payment options when you’re looking to save.

Most suppliers offer a wire transfer directly from your bank account, known as a Direct Debit, that is often the cheapest way to pay your invoice terms, but if like others, you struggle to pay your suppliers full amount once a month, there are more options for you.

Find the right suppliers with good payment options

When choosing an energy supplier, it’s important to consider a variety of factors to find the best fit for your needs. One option to consider is using American Express as a payment method, as you’ll be able to take advantage of its rewards program and potentially earn cash back or other perks. However, it’s also important to consider the supplier relationships that your energy supplier has with other companies and partners, as this can impact the overall quality of service you receive. It’s a good idea to research different suppliers and read reviews from other customers to get a sense of their track record and reputation before making a decision.

Negotiate payment terms

Negotiating terms with your energy supplier in the UK can involve discussing and agreeing on various aspects of your energy account, such as payment methods, tariffs, discounts, and contract length. It will outline any good payment methods based on your particular needs and whether you require any type of deposit to open the account.

Vendors and suppliers will negotiate terms with you before you first open a contract with them; this will outline your terms of use and their terms of service, as well as highlighting a number of personal factors that will allow you access to different tariff options. At this time, you will also be made aware of any transaction fee’s or late payment options on goods or services.

Many suppliers offer discounts to the payee if they are making batch payments or own a small business – we encourage you to keep your options open and research different products and services before paying the upfront costs of a contract.

You can cancel almost all contracts within 30 days if you change your mind.

Confirm how they expect other domestic homes or businesses to pay

There are a number of ways you can pay for your energy bills, with the most common being direct debit, pay-as-you-go, online payments, cheque payments, and bank transfers. Each method has its advantages and disadvantages, and it’s important to choose the one that works best for your financial circumstances and preferences.

Different people use different payment methods for energy for various reasons. Here are some of the main factors that can influence a person’s choice of payment method:

    • For individuals who prefer to budget their expenses, direct debit may be the preferred payment method as it allows them to spread their energy costs over the year and pay a fixed amount each month.
    • Control over energy usage: Pay-as-you-go is a popular payment method among individuals who want to have more control over their energy usage and spending. It allows them to track their energy usage and top up their account as needed.
    • Convenience: Online payments and bank transfers are popular payment methods among individuals who value convenience and prefer to pay their bills from the comfort of their homes.
    • Transaction fees: Some payment methods, such as paying by credit card, may come with transaction fees. Individuals who are sensitive to transaction fees may opt for payment methods that do not charge such fees.
    • Financial circumstances: Individuals who have variable incomes or irregular payment schedules may prefer pay-as-you-go or other flexible payment plans that allow them to pay as they go.

 What payment method is right for me?

1. Direct debit: Direct debit is a popular way to pay for energy. This method allows you to pay a fixed amount each month, making it easier to budget for your energy bills. Many energy suppliers offer discounts or other incentives to customers who pay by direct debit.

2. Pay-as-you-go: Pay-as-you-go energy plans allow you to pay for your energy in advance, usually by topping up a prepaid card or key. This method is popular with customers who want to have more control over their energy usage and payments.
3. Online payments: Many energy suppliers allow customers to make online payments through their website. This method is convenient and allows you to pay your energy bills from anywhere with an internet connection.
4. Cheque payments: Some energy suppliers still accept cheque payments. However, this method is becoming less common as more customers opt for digital payment methods.
5. Bank transfer: Bank transfer is another way to pay for energy in the UK. This method involves transferring money from your bank account directly to your energy supplier’s account.

Paying international suppliers

There are pros and cons to using an energy supplier from abroad. One potential advantage is that you may be able to access better prices and deals from suppliers who operate internationally. Here at Niccolo, we found that many people resort to an international supplier due to the business relationship built up when they may have lived abroad. Alongside this, many company’s like Statkraft, Norway’s top energy company, focus on greener initiatives and accept international payments, which led them to be one of the leading producers of Europe’s renewable energy.

However, there are also some potential disadvantages to consider. For example, if you are dealing with an international energy supplier, you may face challenges in obtaining a refund if something goes wrong with your account. Additionally, currency fluctuations can impact your bills and make it more difficult to budget and manage your energy costs. It’s important to weigh the pros and cons carefully before choosing an international energy supplier, and to make sure you fully understand the terms and conditions of your contract to avoid any surprises or issues down the line.