Good Energy has changed its Default tariff so that the Direct Debit discount applies only to customers who pay by Direct Debit. The change took effect on 1 November 2023 and affects non Direct Debit customers on that tariff, who will see a change to their rates1.
The supplier said the discount had previously applied to all customers regardless of payment method. From 1 November, customers paying by Direct Debit continue to receive it, while those who do not pay by Direct Debit receive changed rates1. Good Energy said it would contact affected customers in October to confirm what the changes meant for them, and that personalised price breakdowns were sent by email or letter1.
"Our current Default tariff includes a Direct Debit discount for all customers, regardless of their payment method. On 1 st November we'll be changing this, so customers who pay by Direct Debit will continue to receive the discount and customers who don't pay by Direct Debit will receive a change to their rates."
The company said Direct Debit payments are less expensive for it to process because they are automated and reduce the risks and costs of handling payments and late payments manually, and that it passes the saving on as a discount1. It said customers are welcome to pay by other methods but will not receive the discount because of the additional work required to process those payments1. Good Energy also said it gives at least 10 days' notice before a first Direct Debit payment is taken1.
Separately, Good Energy set out changes to the Typical Domestic Consumption Values (TDCV) used to illustrate household usage and prices. The TDCV is set by Ofgem. The values in use before the change were 2,900kWh for electricity and 12,000kWh for gas; from 1 October 2023 the revised values are 2,700kWh for electricity and 11,500kWh for gas1.
| Measure | Before | From 1 October 2023 |
|---|---|---|
| Electricity TDCV | 2,900kWh | 2,700kWh |
| Gas TDCV | 12,000kWh | 11,500kWh |
Good Energy said the TDCV change affects only how typical energy use is communicated, not an individual bill, and that reported annual bill figures may therefore appear lower without any reduction in unit rates1. On government support, it said the Energy Price Guarantee was reduced to £0 on 1 July 2023 for most households, with a small level of discount remaining for prepayment customers so they pay the same rate as standard credit customers on Direct Debit1. The company said its Standard Tariff is exempt from the Ofgem energy price cap and is priced to reflect the cost of matching electricity use with power bought directly from British renewable generators1. It said it could not offer a new fixed tariff at that time because of volatile wholesale prices1.
Why it matters for households
A Direct Debit discount is a pricing difference between payment methods, so households that pay by cash, cheque, card or on receipt of a bill can face higher unit rates for the same supply. The gap between standard credit and direct debit is a recurring feature of UK billing, and the rates by payment method determine what a home actually pays per unit. For a household weighing payment options, the prepayment versus direct debit comparison and the satisfaction and cost data set out how the methods differ in practice. Because Good Energy's Standard Tariff sits outside the price cap, its rates are not bounded by the cap levels that apply to default tariffs elsewhere, which matters for anyone comparing Good Energy tariffs with capped offers. The TDCV change does not alter what a home pays; it alters the figures used in official energy statistics and in quoted typical bills, so a lower headline annual figure is not the same as a lower bill. Households managing direct debit payments and credit balances may also see the discount reflected in how monthly amounts are set.
What happens next
Good Energy said it would contact non Direct Debit customers on the Default tariff in October 2023 to confirm what the changes meant for them, and that customers could set up a Direct Debit to keep the discount1. No further dated steps have been reported.
Sources1 cited
- Our default tariff is changing on 1st November 2023 | Good Energy, goodenergy.co.uk