How is my direct debit calculated when I join?

Personal Projection

Working out you Direct Debit when you join us is simple,to start with we need an estimate of your annual gas spend or as the industry like to call it your Personal Projection.

To work this out we take the estimated annual consumption you give us when you join and multiply it by the unit rate (pence/kWh) of the of your chosen tariff. Next up we take your standing charge of your tariff and multiply that by the number of days in the year (365). 

Adding them together and then including VAT at 5% we get an estimate of your annual spend/Personal Projection. We equally split across all the months in the year (12) to give you your monthly Direct Debit amount.

Joining us in between September and march? 

We add on a Winter Uplift of 25%, during your first winter, to your monthly Direct Debit. This isn't an extra charge and we will review your usage at the start of the summer. The Winter uplift is just our way of making sure you are covered and have a buffer for the extra usage most people go through in those colder months. 

Reviews

We get sometimes the estimates we generate are a bit dated. We use all kinds of information to work out an estimate, like how much did the previous owners use. We get your gas usage may be different and so we review your usage based on meter readings you provide. 

Reviews are usually after 2 months, 6 Months and then every six months thereafter to make sure your payments 

We review your payments after two months, 6 months and every 6 months thereafter to make sure your payments are roughly in line with your usage

To calculate your starting direct debit amount we first work out what your estimated annual gas spend will be with us or what is known in the industry as your Personal Projection! We calculate this by multiplying the unit rate (pence/kWh) in your chosen tariff by your estimated annual consumption provided by you. We then multiply the daily standing charge (pence/day) by 365 days in the year. We add these together and include VAT at 5% to give your estimated annual spend or Personal Projection.

Your Personal Projection is then divided into 12 equal monthly payments and that is your normal monthly direct debit payment.

If you join us between September and March we will add on a Winter Uplift of 25% to your direct debit as you will not have had sufficient time to build up a buffer to get you through the cold winter months where you use more gas than your monthly payment.

Don’t worry this is not an additional charge and we will take this into account when we review your direct debit in the spring and lower it once you are back on track.

We review your payments after two months, 6 months and every 6 months thereafter to make sure your payments are roughly in line with your usage.