Prepaid gas and electricity
Can you change from prepayment meter to Direct Debit? Plus what extra help is available
On 1 July, those who pay for their energy on a prepay meter saw their bills fall by 7% on average. If you're struggling to pay, there's help available. Here's what you need to know...
How do prepayment meters work?
Prepayment meters let you pay for your energy on a pay-as-you-go basis. About four million homes in Britain have them. You top them up online (if you have a smart meter) or via a key or card, which you buy credit for at newsagents, post offices and garages.
Typically, prepay customers have had access to fewer tariffs, but the big advantage of sticking with prepay is if you have problems budgeting.
Prior to the energy crisis, some households could cut energy bills by swapping their prepayment meters for a standard meter, but in July 2023 the Government committed to end the 'prepay premium', and prepay is now the cheapest way to pay if you're on a standard variable price-capped tariff.
Yet before you jump to it, a word of caution... there are rarely any prepay deals. All the big discounts tend to be thrown out to win new Direct Debit customers. So it's highly likely Direct Debit will stay by far the overall cheapest option for people who switch energy tariffs, but for those who don't, it'll be prepay.
While fixed prepay deals are rare, there are currently two deals from EDF that are available if you're on smart prepay. EDF's Simply Tracker is a fixed-term Price Cap tracker, that discounts the Price Cap annual standing charges by £50 (£25 for gas and £25 for electricity). The unit rates match the Price Cap. As this is a tracker, when the Cap changes, so will this tariff. Alternatively, EDF has a 12 month fix available for smart prepay customers. It's not the cheapest fix on the market right now, but it might be a good option if you value price-certainty. You can use our Cheap Energy Club comparison tool to see the top deals for you plus a bespoke prediction of what you'd pay likely on the Cap over the next year.
Prepayment energy bills fell by 7% on 1 July 2025
Regulator Ofgem's new Price Cap came into effect on 1 July 2025, with prepay energy bills falling by 7% on average.
Under the new Price Cap, a typical household on prepay will pay £1,672 a year. Yet what you pay depends on how much you use and where you live. To see how the Price Cap change will affect your bill, see our What will I pay from July? calculator.
On a prepayment meter and struggling to pay? There's help available
Energy prices remain incredibly high. According to Citizen's Advice, 2.8 million people have been disconnected from their energy supply in the past year because they couldn’t afford to top up. So make sure you are getting all the support you are entitled to. If you're worried about paying your energy bills – or you're already struggling – don't suffer in silence. There's lots of help out there.
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All suppliers offer small amounts of emergency credit. Usually £5 to £10 credit after your top-up runs out. But when you dip into the emergency credit it doesn't charge you the standing charge (the fixed charge you pay daily just to be connected), so the next time you top up you have to play catch-up.
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Friendly credit prevents you being cut off during certain times of the day or certain days of the week. If you start running out of credit when the shops are closed (for example during evenings, weekends and bank holidays), which stops you being able to top up, you won't be cut off.
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Many providers have hardship funds to help those in debt. Find out if you can get help through a supplier hardship fund.
What's more, regulator Ofgem has strengthened protections for prepayment customers, requiring suppliers to proactively identify and contact customers that have self-disconnected due to being unable to afford to top up. This includes support for repaying any outstanding standing charges.
For more info, see our full Struggling with energy bills guide.
Not already on prepay? Some households in energy debt can be forced to have one
If you're in energy debt, your supplier may be able to force-fit prepayment meters – but this should be the last resort to avoid disconnecting you, and your supplier should have explored all other options to recover the debt first.
Since November 2023, a new code of practice has been in place for forced prepayment meters, which all suppliers must abide by and is legally enforceable. It sets out the rules for when suppliers can and can't forcibly install a prepayment meter.
British Gas is the only major energy supplier to have not yet met the conditions under the new code to be able to restart forced prepayment meter installations. We'll update this guide if this changes.
Ofgem is reviewing customers that had a prepayment meter installed without permission
Regulator Ofgem's review has, so far, identified more than 2,500 customers that had a prepayment meter installed between 1 January 2022 and 31 January 2023, but shouldn't have. Energy suppliers are in the process of paying compensation to affected customers and the review is ongoing.
If you think your supplier installed a prepayment meter or switched your smart meter to prepayment mode when it shouldn't have, you should contact your supplier, as you may be entitled to compensation. If you need help making your complaint, you can contact Citizens Advice and Advice Direct Scotland. If you need extra support, your complaint can be referred to the Extra Help Unit or Energy Ombudsman.
Got an older, traditional prepayment meter? Check if you can get a smart meter
Most suppliers now offer smart prepayment meters – they're free and offer several benefits if you prepay for your energy:
Smart prepayment meters make it much easier to top up. These meters allow you to top up online, by text, over the phone or via an app. So there's no need to pop to the shops when you're running low to add credit to your card or key.
Suppliers can switch you between prepay and monthly direct debt remotely. You no longer need to have an engineer come out to your house and replace your prepayment meters with standard ones – suppliers can simply change it remotely. So if you are eligible and want to switch to a standard credit meter, this is done with a simple click of the button.
You'll be more in control of your usage and spending. You'll be able to see it in 'real time' on your in-home display.
It's much easier to check how much credit you have left. The in-home display will also tell you how much credit you have left, so you no longer have to go to the meter to check. Some suppliers also have mobile apps that can talk to your smart meter, so you can check on your phone.
To see if you can get a smart prepayment meter, contact your supplier, or for more info, see our Smart Meters guide.
Can you switch from a prepayment to a standard meter for free?
Most energy suppliers will let you move from a prepayment meter to a standard meter for free, as any meter you have now will be replaced with a smart meter, as part of the government-led UK roll out.
If you already have a smart prepayment meter, this can be switched remotely to a credit meter, where you can choose a tariff that lets you pay by Direct Debit or on receipt of a bill.
To move off prepay, most suppliers require you to have paid any outstanding debt on your energy account and some some will also require you to pass a credit check, so they can see if there's a risk you won't repay. See below which do.
You can sign up to our Credit Club to get your free credit score and check your chances of being able to switch to a credit meter.
SUPPLIER | ELIGIBILITY CRITERIA TO SWITCH TO A STANDARD METER | CREDIT CHECK? |
|---|---|---|
No specific eligibility criteria. | No | |
You'll need to clear any outstanding debt. | Yes | |
There's no credit check, but you'll need to clear any outstanding debt. | No | |
Customers are assessed on a case-by-case basis. Customers will need to pay off any debt they may have on the meter and pass a credit check. | Yes | |
If you have an outstanding balance on your account, you'll need to either clear it or set up a payment plan to have it incorporated into your new Direct Debit amount. | No | |
Pass a credit check and have an account review. If you fail the check, it may ask for a £150 deposit per fuel, which will be returned after a 12-month period of good repayments. If you have outstanding debt, you will need to clear the debt in full before being switched to a standard meter. | Yes | |
There's no credit check, but you may be asked for a £200 deposit for each meter. | No |
Correct as at June 2025
The big suppliers' eligibility criteria to switch to a standard credit meter
Check your prepay credit balance and take a final meter reading before being switched
If you do decide, and are approved to get a credit meter, make a note of how much credit you have left before your supplier installs your new credit meter or turns off your smart meter's prepayment setting. Your supplier should transfer any remaining credit to your new account, so it'll go towards your first bill as a credit customer.
If you owe your supplier money (for example from using emergency credit), make a note of this, as your supplier will add this to your first bill.
It's also a good idea to take a final meter reading, and take a photo of the meter, so you have proof of what it says.
If you have a traditional (non-smart) prepay meter and it still has credit when you switch supplier, don't insert the new supplier's key or card, as it may wipe the remaining credit. Contact your supplier to get a refund of your remaining credit.
Standard prepay rates are cheapest – but you'll find more competitive deals if you pay by Direct Debit
Under the current Price Cap, prepayment households on standard variable tariffs pay a typical £1,672 a year, compared to £1,720 a year if you pay by Direct Debit – about £48 LESS on average.
But the benefit of switching to Direct Debit is that those on standard credit meters generally have access to more fixed deals, which right now, can offer big savings over the Price Cap. Check our Should I fix? guide or try our Cheap Energy Club comparison tool to see what's currently available.
Or perhaps you just want to switch so you don't have to worry about topping up your meters – though make sure you pay by monthly Direct Debit, as paying on receipt of bills is much more expensive than prepayment.
Quick questions
The provider may charge you for the free meter if you switch away to a different supplier before 12 months have passed, so it can recoup its costs.
It can't dictate which tariff you opt for though, so make sure to check its cheapest tariff.
Prepayment meters do have one advantage – they help you budget. You know what you're spending, when you're spending it, and it's an incentive to keep energy usage down.
While most suppliers don't charge for changing your prepayment meter to a credit meter, some do. If yours does, you might want to consider switching to a supplier that offers a meter change for free, which will allow you to benefit from more competitive deals, as the cheapest fixed energy deals are usually only offered to those who pay by Direct Debit.
You'll need to contact your existing supplier to let them know you're moving. On your moving day, take a photo of your meter as proof of the amount of credit left on it. You can then ask the supplier to refund you - it'll usually send you a cheque in the account holder's name, to your new address.
If you're sticking with the same supplier at your new address, you may be able to transfer the credit to your new prepayment meter. Check with your existing supplier before you move.
If you haven't been able to get a standard credit meter for free and fit into either of these groups, it may still be possible to swap.
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Get certain benefits? A Government scheme, Fuel Direct, lets you pay your bills directly from your benefit allowance. To be eligible for the scheme you have to receive certain benefits.
Energy suppliers may agree to remove a prepay meter if you agree to sign up to Fuel Direct. None have confirmed this and they say it's decided on a case-by-case basis, but it's worth a try.
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Medical condition? According to charity Citizens Advice, if you have mobility problems or are reliant on electricity for medical reasons, for example, to run breathing apparatus, you may be able to get your prepay meter removed.
With most providers, the key is ensuring you're free of energy debt. After that, you need to make your credit score look as good as possible – see how to Improve your credit score guide for more help.
Will I have to pay for the meter if I change supplier after getting a standard meter?
What's to stop me getting into debt on a standard meter?
Is it worth paying for a standard meter?
What happens to my prepay credit if I move home?
Receive benefits or have a medical condition? You may be able to switch via alternative methods
How can I improve my credit history for a better shot at getting a standard meter?
Renting? You'll need your landlord's permission to switch meter
If you want to change from a prepay to a standard meter, then it's best to get written permission from your landlord first. It could be seen as changing the property from its original condition, unless you arrange to change the meter back at the end of the tenancy, which suppliers may charge you for.
If you just want to switch suppliers, you don't need to get permission from your landlord to do this, but it's a good idea to let them know so they're aware, as it will affect future tenants. However, due to the energy market crisis, it's unlikely you'll be able to save by switching supplier right now.
Quick questions
Even if you pay energy bills to the supplier, but your tenancy agreement says you can't switch, challenge it. Preventing a tenant from changing energy suppliers may be viewed as an unfair term in a tenancy agreement. Speak to Citizens Advice to see if it can help.
If there's a default supplier clause in the tenancy agreement – where a landlord has a tie-in with a particular supplier – Ofgem says you can still switch.
Ofgem's guidance states: "If a tenant is directly responsible for paying the gas and/or electricity bills, they have the right to choose their own energy supplier and the landlord or letting agent should not unreasonably prevent this." See the Ofgem website for more.
Tenants can also print out our factsheet to give to landlords. It explains the rights that renters have to switch energy supplier.
Tenants can also get free insulation and boilers, as long as they meet suppliers' eligibility criteria and have permission from their landlord.
You may be able to qualify if you live in a property with an EPC rating of E to G and:
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Someone living at the property qualifies for certain benefits, such as pension credit, universal credit, child benefit (subject to income limit), income support and housing benefit. See the full list of qualifying benefits; OR
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You live in social housing, or are considered by your local council as being on low income (total household income under £31,000 a year) and vulnerable to the effects of living in a cold home.
My tenancy agreement says I can't switch, help!
You may be eligible for free insulation or a free boiler
Top tips if you have prepayment meters
If you can't switch away from a prepayment meter to save cash, then these tips will help you make sure you use prepay the right way.
It's not just how you pay, but how much you use. Cutting energy is a mix of big and little things.
Turn down the thermostat and wear jumpers, defrost the fridge and check it's not on too high, turn lights off when you leave a room, use energy-saving light bulbs and don't leave electrical goods on standby.
We've put together a huge list of Energy Saving Tips as well as Energy Mythbusters for loads of ideas and inspiration to help you cut back your energy usage.
Smart thermostats can also help some save on their energy bills. These gadgets give you greater control over your home's heating, letting you adjust it on the move via a mobile app or online, and set more complicated heating schedules than your traditional thermostat.
They can be pricey though, so see the Smart Thermostats guide to check if they're right for you.
If you're going away, you need to leave enough credit on the meter to cover the daily standing charge, even if usage will be low. Otherwise you may find your credit runs out and appliances switch off while you're gone.
If you've moved into a home with a prepayment meter, tell the existing supplier immediately and don't use the old tenant's top-up card.
Otherwise you may end up having to pay someone else's debt just to get an energy supply. The supplier must, under a code of conduct, reset the meter as soon as reasonably possible.
Lose your card and you'll usually be charged around £10 for a replacement. Any top-ups you've already made should be transferred to the new card.
If you've got a traditional pay as you go meter, you can top up by taking your gas or electricity key or card to your nearest Payzone or PayPoint, which is usually a local shop, or at the Post Office.
But if you have a smart pay as you go meter, you can also top it up online, by text, over the phone or via a mobile phone app. Check your supplier's website or contact it for full info.
You don't need to send a meter reading in if you have a prepayment energy meter.
The purpose of giving a meter reading is to stop your supplier from guessing your usage – with prepayment meters you pay for your energy as you go, so there's no need to supply this.
The table below shows the average unit rates per kilowatt hour (kWh) and standing charges per day (these vary by region) under the current Price Cap (1 April to 30 June 2025) and under the new Price Cap (from 1 July to 30 September 2025).
You can see the full region-by-region unit rates in our Energy Price Cap unit rates guide.
| CURRENT Energy Price Cap rates from 1 April to 30 June 2025 | NEW Energy Price Cap rates from 1 July to 30 September 2025 |
|---|---|---|
Gas | Unit rate: 6.78p per kWh Standing charge: 32.67p per day | Unit rate: 6.11p per kWh Standing charge: 29.82p per day |
Electricity | Unit rate: 26.20p per kWh Standing charge: 53.80p per day | Unit rate: 24.92p per kWh |
Rates and standing charges are averages, which vary by region. Assumes payment by prepayment meter and includes VAT (at 5%).
The simplest way to save is to use less energy
Going away? Remember to top up before you leave
Moved into a home with prepayment meters? Contact the supplier straightaway
Keep your card safe – you can be charged for replacements
How do you top up a prepaid meter?
Do you need to take a meter reading from a prepaid meter?
What are the unit rates and standing charges on a prepaid meter?
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