Four million homes in the UK have prepayment gas and electricity meters. That represented about 10% Of UK population. Is it really their choice to have a prepaid energy tariff?. Are these pay as you go energy plans cheap and convenient?.
Cheapest prepayment energy tariff is at least £150 more costly than the cheapest standard credit meter tariff. Also, you risk running out of energy if you run out of credit. So try to switch to a standard credit meter tariff if possible. However If you Decide to keep prepayment meter or you have difficulty in changing to a standard tariff, compare and switch to a better prepayment deal.
How do prepayment energy tariffs work
prepaid gas and electricity or prepayment energy metes are similar to pay as you go mobile connections. You pay for the energy beforehand and you top up the meter as you go on. If your prepayment energy mete runs out of credit you will run out of energy.
You pay for the energy by means of keys, cards or tokens. These can be topped up in your nearest Payzone or PayPoint agents. which can be your post office, newspaper agent or grocery shop.
Why does somebody own prepayment meter?
Not everything about prepaid energy is bad. with the prepayment meter, you have absolute control over how much you pay for energy. You don’t have to worry about a lump sum being taken at the end of the month. You will get a monthly statement to get an idea about how much you pay every month. further, you will be protected from emergency credit to avoid sudden cut off of power. People may own prepayment meters due to one of the following reasons
Bad Credit history- this is probably the commonest reason why someone ends up in prepayment tariff. You will be offered a prepayment meter if you have a previous bad payment history or you are in debt with your energy provider and you are struggling to repay. By installing a pay as you go meter the energy provider get a reassurance that they will get the payment on time. However, once you repay your debt and maintain regular payments for a reasonable time period you can request to change over to a standard credit meter.
Moving into a house with a prepayment meter – As we mentioned earlier 4 million UK homes have prepayment meters installed. There is a reasonable probability that you move into a house with a prepayment meter. prepayment meters are common in students apartments and shared residencies. Some landlords prefer t have prepayment meters to avoid the hassle of someone leaving without paying energy bills. Read more on prepayment meter on rented apartments.
Budget – sometimes people with tight financial schedule prefer to have prepayment meter so that they can adjust their energy consumption according to their budget. This way you might save some money but you will always end up paying more for what you use as prepayment tariffs are always expensive. If you are on a prepayment tariff purely to budget one close alternative is shifting to a cheap standard tariff with a smart meter. Using your smart indicator you can balance your energy consumption to match your budget. this way you can get rid of expensive prepayment tariff. Read more about different types of tariffs and how to select the most suitable one.
In debt with your energy provider -If you are in debt and fail to repay. your energy provider may install a prepayment meter as the final resort. This meter can be used to gradually repay the debts while paying for the energy you use. read more about the available supports If you can’t pay your debt to the energy provider.
How to find a cheap prepaid energy provider.
Most people believe that if they have a prepayment meter they have to stick to the same supplier. This is not true you have the freedom to switch to a cheaper prepayment tariff. Best way to do this is by comparing energy and switching to a better deal similar to the standard credit meter tariffs. The disadvantage with prepayment tariff is that they are not as common as normal tariffs and you are left with only a few options. But you will almost always get a better deal by comparison and switching than sticking on to the same supplier. For more information read how to switch energy provider and find a better deal
Who offers the cheapest prepayment tariff
Up to date, Omni energy offers the cheapest variable prepaid dual fuel energy tariff which is £per average UK customer. But energy price varies from area to area and the best deal can be found by energy comparison. There are a number of websites that offer energy comparison service.we energyswitchexpert.co.uk is one of them who offers impartial fair service to customers. For more details find our what is the best energy comparison website -market research.
How to switch to a standard credit meter
switching back to a standard credit meter seems to be a very reasonable decision. However, changing your energy meter may not be as easy as switching your energy supplier. It cannot be done by yourself and should always involve your energy provider. If having a prepayment meter is your choice just to manage your budget reverting back to credit meter will not be a big issue. however, if the prepaid energy meter was installed as a result of unpaid bills, switching to a credit meter can be complicated. Different suppliers have their own criteria before changing you back to a credit meter.
All the energy providers expect you to pay all your debts before changing your prepayment meter and all the big six companies except EDF energy will do a credit check before changing to a standard meter
| Energy Provider | Criteria |
| EON | pass a credit check |
| Npower | shouldn’t be in debts and good payment history for nine months. new customers need to pass a credit test or 250 deposit if fails. |
| SSE | no outstanding debts. needs to pass a credit check, may need a deposit, |
| British Gas | shouldn’t be in debt with any supplier and need to pass a credit check |
| Scottish Power | pass a credit check. 150 per fuel if fails. |
| EDF | Shouldn’t haveoutstanding bill.No credit check |
After all the effort if you fail to change to a credit meter make sure you switch to a better prepayment tariff to save money and avoid the hassle of frequent topping ups
Do You have to pay If I need to change to a standard meter
All big six energy companies will change the prepaid energy meter to a standard meter fo free. But some of the small energy suppliers might charge to change the meter. So check with your supplier beforehand. Even if you had to pay a fee this can be compensated by the amount you save from reduced electricity bill
Once the meter is changed a sea of new cheap tariffs will open for you and you can switch and save money. read about different types of tariffs available with credit meters and how to decide the best tariff for you
What happens If I switch after changing to a standard meter which I got for free
If your energy provider changed your prepayment meter to a normal meter for free they usually expect you to stay with them for at least one year to recover what they spend. If you decide to switch before this period they might charge you for the meter. If you think it is not worth for paying for the meter you can ask your provider to put you to their cheapest tariff for which they can’t say no.
My rented house has a prepayment meter
Some landlords prefer to have prepaid energy meters in their properties to avoid tenant running away without paying energy bills. These are more common in student accommodations and shared apartments. If you moved into a house with prepaid energy meter the first thing you should do is to contact the energy provider and inform them that you moved in. That will prevent you from paying someone else debts. If you don’t know find out who supplies my new property
once you inform the energy supplier you can top up the prepayment meter. Without delaying too much request your supplier to change you to a credit meter. The longer you have the prepayment meter the more you pay for energy. Read the complete guide on how to set up gas and electricity in a new home
Do I need landlord permission to change prepayment meter
According to citizenadvice.org.uk Your landlord cannot stop you from replacing prepayment energy meter to a credit meter. This is a right you have if you are responsible for paying your energy bill. You don’t need landlords permission to do this. ( But it is a good idea to discuss with them beforehand. of course, you can challenge if they oppose
Similarly, if you have a credit meter in your rented property and you have difficulty in keeping up with your energy bills you can change to a prepayment meter.
At the end of the tenancy, you might have to change back to the original meter as it is considered as an alteration to the property.
My tenancy agreementhasa default supplier clause
Some letting agencies and landlords have prefered supplier and set as a default supplier in the tenancy agreement. Try to negotiate this if you notice this before signing the agreement. However, if you are responsible for paying your energy bill the default supplier clause cannot prevent you from switching energy supplier or changing the energy meter. At the need of the tenancy switch back to the original supplier.
how to top up my prepayment meter
If you own a smart prepayment meter you are lucky. You can top up the meter online using the app. However, if you don’t have a smart prepayment meter or if your energy provider doesn’t support online top-ups you will have to visit local Payzone or PayPoint agents to top up your key or cards. This can be a newspaper agent, post office or a local supermarket. . It is a good idea to write down a list of nearest Payzone and PayPoint Agents for an emergency
Make sure you maintain credit to avoid unnecessary loss of gas and electricity. Top up your meter close to bank Holidays cover the holiday period, topping up may be difficult as most agents are closed during these periods.
How to find the nearest place to top up your prepayment meter
If you call your energy provider they will be able to tell you where to top up you prepayment gas or electricity meter
Alternatively you follow the link below
Click here to find the nearest Pay point or Pay zone or post office
What to do if I lost my Top-up key or prepayment card
Lost keys and cards are handled differently by each energy provider. As soon as you find out that you have lost your key or prepayment card contact your energy supplier. They will be able to send you a replacement card or key by post. Time taken for this varies from 48 hours to 7 days. Your energy provider may charge you up to 10 pounds to replace a key or a card
If you risk losing energy before your replacement card arrives your energy provider might be able to give you a reference number so that you can purchase a replacement card from your nearest PayPoint or Payzone
If you lose the card which you recently toped-up and not used, take your receipt to your pay zone or PayPoint so they can arrange a refund and top it up to your new card.
If you have a smart meter, things will be much easier. Even if you lose the key or card you can top up the meter online or using the app. so you will not risk running out of energy.
Can I get green energy with prepayment tariff
Every energy supplier will offer at least one prepayment tariff. but your options are significantly low compared to credit energy tariffs. Fortunately, there are a significant number of green energy suppliers in the market so you can definitely get a green prepayment tariff
Different types of prepayment meters
smart prepayment meters
Smart prepayment meters are similar to standard smart meters. You can monitor your energy usage with the in-home display. most importantly with smart prepayment meters, you can top up your meter online or using energy providers app so you don’t have to go looking for PayPoint or Payzone. Credit will be added to your meter remotely. So less hassle for you.
Gas and electric smartcard meters and key meters
Smart keys contain information about your tariff and smart card send information directly to your energy provider when you insert that to your meter. You have to take the key or the card to your top them up and then insert it to your prepaid electricity or gas meter to add up the credit
Are you protected from Prepayment Price cap?
It is likely more vulnerable customers will have prepayment meters. Unfortunately, these pay as you go tariffs are expensive and customers have less choice when it comes to switching. Considering all these OFGEM introduced the prepayment price cap in 2017. Currently, most of the prepayment tariffs are capped at £1075 for an average user. cap price changes from area to area and you may end up paying more if your energy consumption is high. Cap doesn’t guarantee that you will get the cheapest prepaid gas and electricity tariff so always compare and switch to the cheapest deal
What should you do if you are going away
Like any other energy tariff, prepayment tariffs have a standard charge for using the service. even if your energy consumption is zero there will be a regular daily charge.
So make sure you have adequate credit in your mete before you leave home. Otherwise, you might risk you home losing energy while you are away and appliances like your refrigerator will go off and you will have to face chaos when you come back.
What to do If you have practical difficulties with the prepayment meter
Your energy provider should change your prepayment meter with a normal meter if you have illness or disability that makes it difficult to read the meter and top it up or if it is bad for your health if you have to face a power cut.
Also, your supplier should make sure that you can get to your prepayment meter. If it is in an inaccessible site they have to move the meter to a place where you can access easily. If this is not possible they have to replace it with a normal meter where you can pay for energy after you use it
For more details. read Citizen advice
How to top up your prepaid energy meter if you are self-isolating
if you are self-isolating contact your energy supplier as soon as possible. they will be able to support you by finding a way to keep your energy supply connected.
they can let someone else top-up for you, add funds to your account or may be able to send a preloaded top-up card. you will have to pay them back later.
alternatively, NHS volunteer responder might be able to help you if you can’t go out.
Will power supply cut off at night if you run out of credit.
It is a scary feeling to loose energy in the middle of the night when there is no place to top up. fortunately, You are protected from such a hassle by the emergency credit. When your credit balance reaches below a certain amount it will be indicated in your IHD.So that you can activate emergency credit. This amount is usually sufficient to cover an overnight, weekend or bank holiday energy supply. You can top up the meter morning or when shops open after the bank holiday. Make sure you top adequate amount to cover your emergency credit and your usage
What is Friendly credit in prepaid gas and electricity meters
Most energy providers so offer friendly credit which is activated automatically when your emergency credit runs out. Friendly credit will make sure that your energy supply is maintained at night. bank holidays and weekends. Your energy supply will cutoff when your friendly credit run out. Make sure you top up before this or contact your energy provider for support if you finding it difficult to pay
what are the governments’ benefits and discount schemes available for customers in need
Energy discounts and payments are available for vulnerable people and people undergoing financial hardships.
you can get £140 discount on your winter energy bill from warm home discount Scheme
you can get £25 for each 7 day period of cold weather as cold weather payment if you are getting certain benefits and the average temperature is below zero for seven consecutive days
you can get between 100-300as winter fuel payment to pay your heating bill if you are borne before 5th Oct 1954
What can you do if you can,t afford to top up your prepayment meter
If you don’t pay for your gas and electricity you risk of losing your energy supply. So contact your energy supplier if you have any difficulty in topping up your prepayment meter. Explain to them about your financial situation and any vulnerable people you are looking after they might add temporary credit to your meter to keep your energy supply up and running. They might be able to do this online but if they had to come to your home to top up your meter they might charge an additional sum for this. You have to pay for the temporary credit later when you top up.
If you use your prepayment meter to pay your debts to the energy supplier You can request them to reduce the amount you pay for the debts every time you top up your energy meter. Explain any change in the financial situation which make it harder to pay the pre-agreed amount
If you have used your emergency credit you can request your provider not to reduce it straight away from the next top-up but to spread it across several days.
Your energy provider should take your situation seriously and treat you fairly. Ask for any extra help you can get if you disabled, having a chronic illness or pension age, etc. inquire whether you can be entered into their priority register
Make sure you get adequate measures to cut down on your energy bill. For more details read how to save money on gas and electricity- cut down energy bill up to 40%
If you feel you need further support you can contact citizen advice consumer helpline, get assistance from one of the energy charities or get advice from financial and debt organizations. for more details read our comprehensive guide on financial aid for energy
switching prepaid energy supplier when in debt with the current supplier.
being in debt with your current supplier is not always a barrier to switching energy. If you are in debt less than £500 for gas or electricity with your current supplier and paying them with your prepayment meter they can’t stop you from switching. This is done through a debt assignment protocol where your new supplier take your debts and you pay them instead.
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