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Prepaid gas and electricity
Get a standard meter, plus help if you're struggling to top up
Updated 1 February 2023
The energy market is in crisis. Energy prices are at all-time highs, and despite the Government capping bills at an average £2,579 a year for a typical prepay household this winter, that's a huge jump from last year. If you're on prepay, there's help available if you're struggling. Or check if you can save a few pounds by switching to a standard credit meter. Here's what you need to know...
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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 and pay more for their energy than those that pay by direct debit – though are strong calls from charities and campaigners to change this. Generally, the only advantage of sticking with prepay is if you have problems budgeting.
Prior to the energy crisis, some people could cut energy bills by swapping prepayment meters for standard meters for free, or switching prepayment tariff, but due to the ongoing energy crisis, it may not be worth doing right now.
Prepayment prices are discounted under the energy price guarantee
Prepay energy bills are currently capped at £2,579 a year for a typical home (if you use more, you pay more), under the Government’s energy price guarantee (EPG) scheme.
This was introduced in October 2022 to reduce the impact of record high energy bills. The EPG gives a discount on the gas and electricity unit rates under the energy price cap (£4,358 for prepayment customers), which is technically still in place – though you'll only pay the EPG rate right now.
For more info on the price cap and energy price guarantee, see our What is the energy price cap?, What are the price cap unit rates? and the 'energy price guarantee' guides.
Hundreds of thousands have recently been moved onto prepayment meters due to debt – what are the rules?
Prepayment meters are often used by suppliers to recover debt, and they can force people to switch to them – though this should always be the last resort to avoid disconnecting you. Citizens Advice estimates that about 600,000 people were forced onto a prepayment meter in 2022 because they couldn't afford their energy bills.
But there are rules around who can be switched to a prepayment meter (for example, if you're not vulnerable) and when. Providers must have taken all reasonable steps to agree alternative repayment of the debt first, and they can only force you on to one if it’s safe, practical and easy for you to use the meter.
It's also worth mentioning, if you have a smart meter, suppliers can remotely switch you to prepayment – though many have said they won't do this right now.
On a prepayment meter and struggling to pay? There's help available
With massive hikes in energy prices over the last year or so, many households are struggling with bills right now. If you're worried about paying your energy bills this winter – or you're already struggling – don't suffer in silence. There's lots of help out there.
- Households get £400 to help with fuel costs this winter – if you're on a traditional (non-smart) meter, don't forget to claim it. It's paid monthly (£66 or £67) by your supplier from October 2022 until March 2023 and most households should have received their first four payments. If you're on smart prepayment, it should be credited to your electricity account automatically (though some suppliers let you move it to your gas meter) within five working days of the start of the month.
If you have traditional (non-smart) prepayment meters, you'll get a voucher each month, usually sent within 11 working days of the start of the month (by text, email or post), and most let you use it on gas or electricity when you top up as normal – make sure your supplier has your up to date contact info. If you've not got your vouchers, lost them or had one expire, see full prepay voucher help.
- 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.
- 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.
- Many providers have hardship funds to help those in debt. Find out if you can get help through a supplier hardship fund.
- Many suppliers have said they won't collect debt from prepayment customers this winter. See what your supplier is doing to help.
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.
Got an older, traditonal 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 big energy suppliers – British Gas, EDF, Ovo, Scottish Power and SSE – will let you move from a prepayment meter to a standard meter for free. Some other suppliers also offer to do it for free, though some may charge, so always check first. If your supplier does charge, you can always consider switching to one that offers it for free.
To move off prepay, nearly all suppliers require you 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. Of the big names, only EDF says it won't credit check you, though it does require you to pay off any debt first.
Swapping to a standard credit meter will only save you a small amount right now
In the past, switching from prepay to a standard credit meter would open a world of competition and cheap prices. Yet now, due to the energy market crisis, it's not as clear cut – there are no cheap fixes for those paying by direct debit, and virtually all households are on their provider's standard tariff, paying very similar rates under the energy price guarantee.
However, there is still a small benefit. Under the energy price guarantee, a typical dual-fuel household pays £2,579/year on prepay, compared to £2,500/year for someone paying by monthly direct debit.
If you think that's worthwhile, or perhaps you want to switch so you don't have to worry about topping up your meters, it could still be worth doing – though make sure you pay by monthly direct debit, as paying on receipt of bills is more expensive than a prepayment.
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
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.
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