Cheap Prepaid Gas & Elec

Can you switch to a credit meter?

The very cheapest energy tariffs are online deals for those who have credit meters – in other words, standard 'billed' meters. They measure your usage, then you receive a bill or pay by direct debit afterwards, rather than paying in advance.

Typical average prepay meter cost: £1,088 Typical cheapest prepay meter cost: £967 Typical cheapest credit meter cost: £857 Correct at July 2018. Based on average consumption for a typical house using a 'medium' amount of energy.

Standard meters offer a wider choice of tariffs, including cheap online deals, direct debit discounts and more. It's simply a more competitive marketplace.

Choices are opening up for prepay users, but it's still an outrage that some of society's poorest often pay more for their energy with these meters. So if you can, ditch and switch to a credit meter – usually this involves a credit check and ensuring you've repaid any debt owed to the supplier.

How to switch to a credit meter if you're with a big six supplier, or others that don't charge

If you're with British Gas, EDF, E.on, Npower, Scottish Power or SSE (plus a few others, like First Utility) you can move without being charged. Many smaller providers will charge you to change meter, so always check with yours.

• Will they allow you to switch?

  To move off prepay, you'll usually need to have paid any outstanding debt on your energy account and be credit-scored, so they can see if there's a risk you won't repay.

  All of the big six suppliers' criteria are detailed in the table below. If you're not with one of the big six, check your supplier's criteria.

  Supplier	Eligibility criteria to switch to a credit meter	Type of credit check (1)
  	An account review and credit check. You can't be in debt with British Gas, or have had a debt in the last 12 months at your current/previous address.	Hard check
  	No credit check, but you must repay any outstanding debt first, at least three months before requesting to switch meters.	None
  	A credit check.	Hard check
  	You need to have a good repayment history (or build one up for between six and 12 months), and can't be in debt on your account.	Hard check
  	Your account history is reviewed to ensure you won't build up debt. A credit check may be done. It may ask for a £150 deposit which will be returned in 12 months.	Hard check
  	A credit check.	Hard check
  Correct at July 2018. (1) A hard check leaves a footprint meaning lenders can see it if they search your credit file. A soft search is only visible to you.

• If they let you change, don't then stick with that provider – the real savings come from doing a comparison

  If your provider allows you to switch to a billed meter, suddenly a world of competition and cheap prices is available to you that wasn't before.

  The cheapest prepaid tariff is about £110/yr more expensive than the cheapest billed tariff on the same usage, so here are the two things you need to know once you've a billed meter:
  
  - There are massive price differences, so do a comparison. You'll be put on a standard tariff when you move to a billed meter which is still costly, so do a Cheap Energy Club quick & easy comparison to find and switch to your cheapest. Even if you don't want to switch firm, ask your company to put you on its cheapest tariff.
  - Pay by monthly direct debit. The cheapest way to pay is monthly direct debit, so ensure you select that. You'll have to give your supplier regular meter readings (every few months) to keep it accurate though.

• What if you're unlikely to be able to switch to a credit meter?

  Don't just give up – there are still things you can do, both to save now and to help switch in future.
  
  - Move to the cheapest prepayment tariff. Savings aren't as big here, but the cheapest deals will still save you around £120/yr on typical usage. So do a quick prepay energy comparison and switch to your cheapest. See below for our top picks and how to compare tariffs.
  - (Re)build your credit history. With many providers, the key is ensuring you're free of energy debt. After that, it's also important to make your credit score look as good as possible – see the 35 ways to boost your credit score guide for more help.

How to switch to a credit meter if you're with a supplier that charges you to do so

Some smaller suppliers, including Extra Energy and Green Star, do still charge for a credit meter to be installed – it can be as much as £140. And even if some don't charge, they may do if you get one then switch away after that. So, here's what you do...

• If it's likely you can move, switch to a prepay provider that'll give you a free billed meter
  
  Why pay when you can get it for free? The first thing to do is switch to a provider that will let you move to a billed meter for free when you ask.

  The main ones that do this are British Gas, EDF, E.on, First Utility, Npower, Scottish Power and SSE. However, if you're doing it you may as well do a prepay energy comparison to find the cheapest of those, plus you can also earn up to £25 cashback for switching.

  Once the tariff switch is complete, you may need to wait a few months to build up your payment history (another reason doing a prepay comparison first is important), then follow the Switching to a free billed meter info above.

• What if you're unlikely to be able to switch to a credit meter?

  Don't just give up – there are still things you can do, both to save now and to help switch in future.
  
  - Move to the cheapest prepayment tariff. Savings aren't as big here, but the cheapest deals will still save you around £120/yr on typical usage. So do a quick prepay energy comparison and switch to your cheapest – see below for our top picks and how to compare tariffs.
  - (Re)build your credit history. With many providers, the key is ensuring you're free of energy debt. After that, it's also important to make your credit score look as good as possible – see the 35 ways to boost your credit score guide for more help.

Quick questions

Never had a credit meter before? Quick tips

Credit meters are usually cheaper than prepayment meters, but it takes more effort to stay on top of bills. When you switch over, make sure you do the following:

Renting? You'll need your landlord's permission to switch meter

If you want to change from a prepay to a credit meter, then it's best to get written permission from your landlord first.

This is because 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. The supplier may charge to do this so check first.

But you can still (probably) switch energy supplier...

You should check your tenancy agreement to see what it says about switching utility suppliers. But even if your contract bans it, Ofgem's guidance states that if you pay the energy bill, you're still entitled to change supplier (check your tenancy agreement, too – if it says you can't switch, challenge it).

You don't need to get permission from your landlord to do this, but it's a good idea to let them know in writing so they're aware as it will impact future tenants.

If you move in to a new home and want to know 'who supplies my gas?', check with your landlord. The property may already be supplied on a more expensive, standard tariff. You can still compare on Cheap Energy Club, even without the former occupants' bills.

We'd love to hear your experiences of switching as a renter on the Switching when renting forum discussion, especially if you've challenged your landlord.

Tenants can also print out our factsheet to give to landlords. It explains the rights that renters have to switch energy supplier, but in the meantime here are some pointers...

Can't get a credit meter? You can still switch supplier

Just switching prepay tariffs won't be as lucrative as switching to a credit meter, but if getting one isn't an option, many can still cut their energy bills.

Do a quick prepay comparison now (for a full how-to, see below) and as long as your energy debt isn't over £500 you'll be allowed to change tariffs and save some money on your annual bills.

How to compare prepay tariffs (and also grab cashback)

You can switch and save on prepaid gas or electric meters. Our Cheap Energy Club tool makes switching as easy as possible and helps you get constantly cheap gas and electricity.

All you need to do is tell it where you live and how much energy you use. Then we'll tell you if you're overpaying on your current deal or if there's a cheaper alternative.

But the best bit is we'll keep monitoring your tariff for you every month to ensure you're always on the best deal. Plus, if we can switch you, you'll usually get £25 cashback.

It's also worth checking out the comparisons below – they offer cashback options, too.

The limitations of comparison sites – they don't always show all tariffs

Bear in mind that some comparison sites by default only show you tariffs you can switch to via them (ie, where they're paid commission). This filters out some results unlike Cheap Energy Club which shows you ALL those available by default and always has done.

If you do use a comparison site, always check you're seeing all available tariffs to get the full picture before making a decision.

• Overall top comparison service. £34 cashback per switch.

  Energyhelpline* has a history of good reliability and good feedback on our forum. It pays £17 cashback per fuel per switch if you do it online.

• Alternative top picks for freebies. £25 cash, £35-40 wine.

• For a dual fuel switch – getting gas and electricity from one provider – you can get bigger freebies (one per household). Don't assume dual fuel is always cheapest. Check whether getting separate gas and electricity can undercut it, as it often can.

  - 6 bottles of wine (worth c. £40): uSwitch*

By clicking via these special MoneySavingExpert.com links specifically to get to the comparison sites and not going direct, you also get paid the cashback or freebies on top, provided they can switch you (see why they pay). It's usually paid in 45-90 days.

If you've less than £500 debt per fuel, you can still switch supplier. This debt will follow you to the new supplier.

Use your prepay meter the right way

If you can't switch away from a prepay meter to save cash, then these tips will help you make sure you use your prepay meter in the right way:

• Use less energy

  It's not just who you pay, but how much you use. Cutting energy is a mix of big and little things.

  Turn down the thermostat and wear jumpers, turn lights off when you leave a room, use energy-saving light bulbs, defrost the fridge and check it's not on too high, don't leave electrical goods on standby.

  For more info, read the Energy Saving Hunt discussion and see the Energy Saving Trust website.

  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.

• Don't use emergency credit too often

  Most suppliers provide around £5-10 emergency 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, which can throw your budgeting out.

• Going away? Make sure you top up enough

  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.

• Moved house? Tell your supplier immediately

  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.

• Ignore doorstep sellers

  There have been previous scams involving doorstep sellers selling fraudulent top-up cards. The cards were normally sold in £50 denominations for the price of £25. They didn't work, so it was wasted cash.

• Top up before price hikes

  This depends on your provider. But when British Gas, for example, last hiked prices, the price charged by the meter didn't increase until the first time you topped up after the rise. Anything used before that first top-up was charged at the old rate. As there is usually a maximum top-up, the benefit of this will be limited.

• Keep your card safe

  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 (though EDF doesn't do this).