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Is my energy Direct Debit too high?

A Direct Debit is a payment plan, not your bill. It spreads the expected cost of a year's energy into equal payments, adjusted for any credit or debt on your account.

Updated 2 October 2026 · energy.org.uk editorial team

The short answer

Your monthly payment should roughly equal your expected yearly cost divided by 12, plus or minus an amount to clear any debt or use up any credit. If it is much higher than that, ask your supplier how it was set.

Our Direct Debit check works this out from your yearly cost, payment and balance.

Check

What to check first

  • Your expected yearly cost or usage. It is often on your bill or annual statement. Is it based on actual readings or an estimate?
  • Your balance. Credit lowers the payment you need; debt raises it.
  • Debt recovery. Part of the payment may be repaying debt over a set number of months.
  • The time of year. Level payments mean credit builds in summer and is used in winter, so some credit in early autumn can be expected.
  • A price or tariff change. A new tariff, or a change in the price cap, changes the yearly cost.

What Ofgem's rules say

Suppliers must take all reasonable steps to base a fixed Direct Debit on the best and most current information they have, including how much energy you are likely to use. Where credit has built up, they must refund it promptly if you ask.

Do

Practical next steps

  1. Give your supplier an up-to-date meter reading.
  2. Use the Direct Debit check to see what payment would clear your balance by the next review.
  3. Ask your supplier what usage the payment is based on, how much is recovering debt, and when it will next be reviewed.
  4. If you have a lot of credit, ask for a refund.
  5. If you cannot agree, make a complaint. After eight weeks, or a deadlock letter, you can go to the Energy Ombudsman.

Take care

Important limitations

  • The check is an illustration. Suppliers also take account of seasonal use and when your next review falls.
  • Lowering a payment below your use builds debt, which usually leads to a bigger increase later.
  • Prepayment and quarterly bill customers pay differently, so this check does not apply.

Related tools and guides

Sources

Official sources checked 2 October 2026.