Variable Direct Debit is different to Monthly Direct Debit in that your actual energy bill is deducted from your bank account at the end of a fixed calendar period in which you use the gas or electricity. This calendar period varies depending on the tariff, you signed up for, and can be a quarter, a half year or a year.

Advantages

  • All the advantages that apply to Direct Debit payments generally, will also apply to Variable payments. The main difference is that you only pay for the gas or electricity that you use, in the period in which you used it.

Potential Disadvantages

  • Your bill payments will continue to be lumpy, with higher bills in the winter than in the summer;
  • Certain suppliers will charge more for energy paid by variable direct debit because they do not get the same cashflows benefits that they get from fixed monthly payments.