
Cheap Prepaid Gas & Electricity
Get a standard meter, or switch & save
Prepaid energy prices are capped by the regulator, but don't be fooled, there are cheaper prepayment deals for switchers that can help you save – and most can save about £85/year. To check, do a Cheap Energy Club comparison.
How do prepayment meters work?

Prepayment meters are electricity and gas meters that let you pay for your energy on a pay-as-you-go basis. About four million UK homes have them and you top up prepayment meters via a key or card, which you can buy credit for at newsagents, post offices and garages, or via an app or online. While they can help to budget, you usually end up paying more for energy.
In general, prepay customers have access to fewer tariffs, typically pay more for their energy, and are more likely to be in vulnerable circumstances than those paying by other means.
Yet in many cases you can swap them for standard meters for free, and even if not, you can still switch your prepayment tariff to cut your costs.
The only advantage of sticking with prepay is if you have problems budgeting.
Prepayment prices are capped – but don't be fooled
In April 2017, Ofgem introduced a cap on most prepayment tariffs, limiting what suppliers can charge for gas and electricity. Prices are currently capped at £1,070/year on average for someone on typical use.
But don't be fooled, the real savings are still to be made by switching.
Prepayment vs standard credit meters
The very cheapest energy tariffs are for those who have standard meters – where you pay monthly or quarterly, by direct debit, cash or cheque.
For a typical household, you'd save about £100/yr on the cheapest deal with a standard meter, compared to the cheapest prepayment deal.
Prepayment vs standard meter tariffs (based on typical use)
TARIFF | SUPPLIER | COST/YEAR (1) |
---|---|---|
Prepay energy price cap on typical use |
- | £1,070/yr |
Cheapest prepayment deal |
Bulb – Vari-Fair Prepay | £985 |
Cheapest standard meter deal |
Green Variable | £885 |
Tariffs correct as of 6 January 2021. Based on calculations from Ofgem for medium usage. (1) Including £25 MSE dual-fuel cashback. |
Can you switch from a prepayment to a standard meter for free? Save £100/yr

All big six energy suppliers – British Gas, E.on, EDF, Npower, 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 smaller providers will charge you to change meter, so always check first and if that's you, considering switching away to a provider that will give you a meter 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 six, only EDF says it won't credit check you, though it does require you to pay off any debt first.
Once you've swapped your meter, switch your energy
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 £100/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 will still be hugely expensive. Once your new meter is set up, do a Cheap Energy Club comparison as soon as possible to grab much cheaper deal.
- If you can, pay by monthly direct debit. The cheapest way to pay is monthly direct debit, so go for that if you can. You'll have to give your supplier regular meter readings (every month if possible) to keep it accurate though. See Energy direct debit help for more info.
For more info and top tips on getting the best out of your new standard credit meter, see Cheap Gas & Electricity.
Quick questions
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.
But you can still switch energy supplier...
You should check your tenancy agreement to see what it says about switching energy 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 so they're aware, as it will impact future tenants.
To see if you can save, do a comparison on Cheap Energy Club. What's more, it'll help you estimate usage for your new home.

Quick questions
Can't get a standard credit meter? You can still switch supplier and save £85/yr
Update: If you're self-isolating, you may want to consider carefully before you switch, as you can't transfer credit from one supplier to another.
Don't just give up – you can still switch your energy and save massively on bills. While there are fewer deals available if you're stuck on prepayment, someone on a typical big six standard prepayment tariff can save about £85/yr by switching to the cheapest prepay deal.
Plus, there are no exit fees on prepayment tariffs and your supplier can't stop you switching if you have less than £500 debt on your meter.
The market's cheapest prepayment energy deals
TABLE_CELL_STYLE | SUPPLIER |
COST/YEAR (1) |
---|---|---|
Prepay energy price cap on typical use |
- | £1,070 |
Cheapest prepay deal (variable) |
Bulb - Vari-Fair Prepay | £985 |
Cheapest prepay fix | EDF Prepay Total Service May22 | £1,017 |
Correct as of 6 January 2021. All tariffs assume national Ofgem medium usage. Varies by region. (1) Includes £25 MSE dual-fuel cashback (where applicable). |
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.
Other comparison sites don't always show all tariffs by default
It's also possible to get cashback for switching from comparison sites. Though 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 – Cheap Energy Club shows you ALL those available by default.
What happens when you switch prepay tariff?
Switching is easy, it's the same gas, same electricity and same safety – the main things that change are price and customer service. You'll be sent a new key or card to top up with before your switch completes. Don't worry, you'll still be able to top up throughout the process, and if you've any credit left on your meter, your old supplier will pay this back.
Check if you can get a £140 discount
Energy suppliers are obliged to help those in hardship. One way they do it is by providing the Warm Home Discount, a one-off £140 discount on your electricity bill between October and March. If you're eligible, you'll usually receive a letter each year telling you whether you'll get the discount automatically or if you need to apply for it.
The scheme requires suppliers, by law, to help vulnerable customers pay for energy. It's available for customers who receive pension credit, so if this applies to you and you've a prepay meter, you can get it too. The final decision rests with suppliers – so call up and find out what your supplier will offer you.
For full help on getting free cash to help pay utility arrears, or freebies to cut energy bills, see our Housing and Energy Grants guide.
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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