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Direct Debit Adequacy?

Posted by PFP Energy

You may have had your Direct Debit amount changed recently and I bet you’re thinking “what is going on?”.

Some energy suppliers don’t regularly review their customers Direct Debits meaning you can rack up debt, or be owed money by them. That’s not who we are. At PFP Energy, we like to make sure that our customers are always up to date with their bills and understand what they are spending on their energy. When it comes to the winter months, customers end up with bigger bills for their higher energy usage so monthly costs will fluctuate.

We use ‘Direct Debit Adequacy’ (DDA) as a way to manage customers energy spending by smoothing the monthly payments to a regular amount over the year.

What is it?

  • DDA is a calculation based on 12 months of your known energy usage which gives us your projected annual consumption. DDA will then divide this by 12 to determine your monthly direct debit amount.
  • We ask you for reads every month to ensure that you receive an accurate and up to date bill. This way your account balance will be completely accurate and will indicate whether you need a direct debit review.
  • We have an internal facility called the ‘price calculator’ that we use to calculate your usage. This is based on the meter readings you have provided and helps us to determine a suitable amount for your monthly payments. The calculator takes into consideration various factors such as seasonality (the warmer and colder months), as well as your account balance to ensure that the amount you are paying is correct.


What do PFP Energy do well with regards to direct debit adequacy?

  • Our friendly advisors are fully trained to conduct direct debit reviews upon your request within minutes, as long as we have your meter reads from the last 30 days.
  • We automatically conduct these reviews on your account after the first month and then once every four months thereafter to ensure that your monthly payments are set to a sufficient amount. This helps us to make sure that your account does not fall into a large debit or credit balance.
  • We provide monthly bills, instead of quarterly so that you can see your account balance from month to month, this makes it easier to recognise when your account may need a direct debit review.
  • We use our ‘price calculator’ to determine whether you are entitled to a refund and offer further information in regards to your consumption and future direct debit amounts.