Data Energy Taps GoCardless for Recurring Pay by Bank to Automate Utility Billing

Quick Summary

GoCardless is helping Data Energy automate utility billing through Recurring Pay by Bank, an open banking solution. This partnership enables automated energy top-ups, reducing manual administration and card-related churn while providing customers with a seamless, secure, and flexible account-to-account payment experience for heat network services.

How Does Recurring Pay by Bank Solve Utility Billing Challenges?

Recurring Pay by Bank addresses the friction inherent in traditional utility payments by replacing manual meter top-ups with automated A2A transactions. For Data Energy, this shift mitigates the risk of payment failure caused by expired or lost debit cards, a primary driver of customer churn. The technology utilizes the UK Payments Initiative (UKPI) framework to provide flexible billing that adjusts to fluctuating energy usage.

• Intelligent routing ensures 100% coverage by reverting to Direct Debit if open banking is unavailable.
• Bank guess features leverage 15 years of data to auto-fill details for 80% of UK payers.
• Operational efficiency is gained by eliminating manual tracking and billing administration.

What Results Has Data Energy Delivered with Open Banking?

The transition to recurring open banking follows a highly successful pilot of one-off payments. Data Energy reported an 82% adoption rate within weeks of launching the initial Pay by Bank feature, a figure that has now climbed to over 90%. This demonstrates a massive consumer appetite for account-to-account payments over traditional card-based methods. By moving to a recurring model, the company expects to further streamline payment collection and improve long-term resident outcomes.

How Does This Impact the Wider Energy Sector?

As an early adopter, Data Energy is setting a benchmark for how heat network specialists can navigate the evolving Ofgem Market Framework. The use of open banking connectivity to over 2,500 banks allows for faster, more informed financial decisions and lower transaction costs compared to legacy systems. This competitive advantage is critical as the sector moves toward more transparent and customer-centric billing models.

"One of our priorities has always been making life easier for our customers while reducing unnecessary administration behind the scenes. The response to Pay by Bank showed us that customers are ready for a simpler way to pay, so moving to an A2A provider and recurring payments was the obvious next step. It gives customers more control and peace of mind, while allowing our team to spend less time managing payments and more time supporting the people who rely on our service." said Aaron Beadle, Director of IT and Technical Services at Data Energy.

"The launch of Recurring Pay by Bank will revolutionise the energy sector. For the first time, providers can access fully automated, flexible utility billing. This offers them a reliable, low-cost way to manage fluctuating usage whilst providing a more seamless and secure payment method for their payers. We look forward to seeing how Data Energy uses Recurring Pay by Bank to build a competitive advantage as an early adopter." said Pat Phelan, Chief Revenue Officer at GoCardless.

FF NEWS TAKE:

This partnership moves the needle by proving that open banking isn't just for one-off fintech apps; it is ready for heavy-duty utility billing. The 90% adoption rate is a staggering validation of A2A payments. As GoCardless leverages the new UKPI scheme, we expect a rapid exodus from expensive card rails in the energy sector, where margin preservation and payment reliability are paramount.