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Payment method
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Advantages
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Dis-advantages
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Who this may suit
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Quarterly
/Bi-monthly credit:
You will receive a bill from your supplier every 2-3 months.
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Only have to think about a bill when it arrives.
Always have access to fuel.
Always paying for fuel after it has been used.
Prompt payment discounts available (within 10 days).
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Difficult to budget due to large difference between winter and summer bills.
Problems can arise due to estimated bills.
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Households with a stable income.
Households whose income can easily accommodate fluctuating bills.
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Monthly Direct Debit (DD) from bank account:
Money taken direct from your account to cover bills.
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No worry about bills.
Lower unit charges or discounts for direct debit.
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Must have a bank account.
Must ensure consumption does not exceed what you can pay.
If insufficient funds in bank account charges occur.
Does not encourage estimated bills to be checked before payment.
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Households with regular income.
Those who find monthly budgeting easier than quarterly.
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Standing Order (SO) from bank account: Payment of a set amount every week, fortnight or month. Based of what your supplier estimates you use.
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Payment the same all year round.
No worry about bills.
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Must have a bank account.
Must ensure consumption does not exceed payment.
If insufficient funds in bank account charges occur.
Standing orders do not benefit from lower charges or discounts.
Does not encourage estimated bills to be checked before payment.
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Households with regular income.
Those who find monthly budgeting easier than quarterly.
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Flexi Plan or Pay-as-you-go:
Pre-payments of differing amounts can be made in advance.
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Flexible.
Can pay towards next bill.
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Have to be careful to pay off next bill before it is due.
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This would suit those with irregular incomes such as self employed or those who work varying amounts of overtime.
Those on a low fixed income but irregular outgoings i.e. unemployed or pensioners.
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Budget schemes or ‘cashplan’ without bank account:
Regular payments made at post office.
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Payment on a regular basis.
Can pay at the post office or Pay Point outlet.
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Possible inconvenience and travel costs.
Households who want to pay at regular intervals.
Households repaying debts.
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Households without a bank account.
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Pre-payment meters:
Cards are purchased to ‘charge up’ meter.
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Pay for fuel as it is used.
Can budget according to means.
No large bills to worry about.
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More expensive way to pay for fuel.
Are tokens/cards sold nearby?
Need to understand fuel consumption and how standing charges/debt are reclaimed.
Self disconnection risk.
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Those with easy access to locations selling tokens/cards.
Those who are in debt – so they can repay debt through a meter.
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Fuel Direct: Used for debt repayment by those on income support.
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Payment for current use of fuel and debt taken directly out of benefits.
Fuel expenditure and debt repayment evenly spread.
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Essential to understand that, if current fuel use exceeds amount paid in Fuel Direct, money will still be owed and deductions from benefit will have to be increased.
No flexibility in budgeting.
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Only for those on income support and other qualifying benefits who are in fuel debt.
Suitable particularly for those with ill health and mobility problems.
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Energy bills Online:
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Can pay bills at any time of day or night
Quick and easy to manage your energy account
Can view all your previous bills and energy consumption
Some utility companies offer further discounts for paying online
Greener option – paperless transaction
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Requires access to a PC
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PC users
Environmentally aware energy users
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