Should I switch to a prepayment meter to save money?
Get clear, UK-specific guidance on prepay meters (PAYG) vs credit meters — and compare whole-of-market tariffs to see what could genuinely reduce your bills.
- Understand whether prepay can be cheaper for your home and usage
- Check the latest prepayment rules, support and protections
- Compare deals you could switch to (without guessing)
Whole-of-market comparison for UK homes. Switching depends on your meter type, debt status and supplier availability.
Compare energy prices first — then decide on prepay
Switching to a prepayment meter can feel like a quick way to control spending, but it doesn’t automatically mean cheaper bills. The best way to lower costs is usually to compare tariffs across the market for your home — then decide whether a credit meter or prepayment (PAYG) meter fits your situation.
Use EnergyPlus to compare whole-of-market home energy deals. We’ll help you check what’s available for your postcode, meter type and household.
Good to know: Many UK homes can keep a credit meter and still budget effectively with Direct Debit, monthly billing, or smart meter tracking. Prepay is sometimes helpful, but it can also be restrictive — especially if topping up is difficult.
When prepay might be relevant
- You’ve struggled with managing monthly bills and want tighter day-to-day control
- You’re repaying an energy debt and need a structured repayment method
- Your property already has prepay and you’re deciding whether to keep it or change
- You’re considering smart prepay for easier top-ups and better visibility
What is a prepayment meter (PAYG) in the UK?
A prepayment meter (often called PAYG) lets you pay for gas and/or electricity before you use it. You top up in advance and the meter deducts credit as you consume energy.
Traditional prepayment
- Top up using a key or card (often at PayPoint/Payzone locations)
- Meter displays remaining credit and emergency credit options
- Can be harder to manage if you can’t easily reach top-up points
Smart prepayment
- Top up online, by phone, or via supplier app (depending on supplier)
- Usage and balance can be clearer with in-home display/app
- May reduce the risk of running out unexpectedly (but it can still happen)
Important: If you’re on prepay, being unable to top up can lead to self-disconnection. If that’s a risk in your household (for example, health conditions or young children), seek advice before switching.
Is a prepayment meter cheaper than a credit meter?
It depends. Historically, prepayment tariffs were often more expensive. More recently, industry changes have aimed to reduce the gap, but your real cost still depends on: your supplier’s rates, your region, your meter type (standard vs smart), and whether debt repayments are being collected through the meter.
What can make prepay feel “cheaper” (even if the tariff isn’t)
Budget control
You can see credit reducing in real time, which may cut usage and avoid surprise bills.
No estimated bills
Prepay is pay-as-you-go, which can prevent large catch-up bills caused by estimates.
Debt repayment structure
Repayments can be taken automatically, which some households find easier to manage.
What can make prepay more expensive in practice
- Higher unit rates on some prepay tariffs compared with Direct Debit deals
- Standing charges still apply on most tariffs, even when you’re not topping up
- Debt deductions can reduce your credit faster than expected
- Emergency credit and friendly credit settings can mask how quickly costs are adding up
Best practice: If your goal is purely to save money, compare tariffs and payment methods first. Prepay is mainly a payment control tool — and can be helpful, but it’s not a guaranteed discount.
Benefits and drawbacks: prepayment vs credit
Use this to weigh up what matters most to your household (cost, convenience, stability and support).
Potential benefits of prepay
- Helps prevent unexpected quarterly or annual bill shocks
- Can be useful if you don’t want or can’t set up Direct Debit
- May support repayment of existing energy debt in manageable amounts
- Smart prepay can make topping up simpler and tracking usage easier
Common drawbacks to watch
- Limited tariff choice with some suppliers and meter setups
- Risk of running out of credit (especially in cold weather)
- Debt deductions can make energy feel unaffordable faster
- Top-ups can be inconvenient if you rely on shops or have mobility constraints
If you’re vulnerable: If someone in your home is elderly, has a disability, or has a health condition affected by cold, prioritise supply security. A credit meter or smart meter with predictable billing may be safer than traditional prepay.
A quick decision checklist: should you switch to prepay?
Answer these honestly. If you tick more boxes on the “avoid” side, prepay may not be the best cost-saving move.
Prepay may suit you if…
- You prefer paying in smaller amounts and tracking spending closely
- You can top up easily (or you can use app/online top-ups via smart prepay)
- You’ve compared tariffs and the price difference is small (or in your favour)
- You’re confident you won’t be at risk of running out during evenings/weekends
- You don’t need a wide range of tariff options (e.g. complex time-of-use deals)
Think carefully (or avoid) if…
- Your household is vulnerable to cold or relies on powered medical equipment
- You already struggle to afford energy — self-disconnection is a real risk
- You have debt deductions that would make weekly top-ups hard to sustain
- You live far from top-up locations and don’t have smart prepay available
- You could access cheaper Direct Debit tariffs by staying on (or moving to) a credit/smart meter
Tip: If your priority is budgeting, consider a smart meter (credit mode) plus regular meter readings and monthly billing. You may get better tariff access while still keeping close control.
How switching to a prepayment meter works (and what can block it)
The exact process depends on your supplier, current meter type and whether there’s existing debt on the account.
- Compare tariffs and payment options first. If credit meter + Direct Debit is cheaper, prepay may increase your costs.
- Check whether your supplier will fit/switch you to prepay. Some situations may require a smart meter exchange or engineer visit.
- Ask about top-up method and emergency credit. Confirm how you’ll top up (app, phone, shop) and what happens if you’re low.
- Confirm standing charge, unit rates and any debt deductions. Make sure you understand what’s being taken each top-up.
- Keep evidence and readings. Record meter readings on the day of change to avoid billing disputes.
Common blockers and complications
Debt and repayment plans
If you’re in arrears, suppliers may set repayment deductions through prepay — which affects affordability.
Property and meter constraints
Older meters, limited access, or landlord permissions can affect whether and how a meter can be changed.
Tariff availability
Not every tariff is offered for prepay, and some offers differ by region and network.
Costs, charges and “hidden” reasons your prepay credit drops fast
If you switch to prepay to save money, you need to understand what you’re paying for. Many households assume they’re “using more” when the balance drops, but often it’s a mix of standing charges and deductions.
| What affects your prepay balance? | What it means for costs | What to do |
|---|---|---|
| Unit rate (per kWh) | Your core price per unit of energy used. | Compare tariffs for your meter type and region before switching. |
| Standing charge (per day) | Charged daily on most tariffs, even if you use little energy. | Ask for the exact standing charge; factor it into weekly top-up plans. |
| Debt deductions | Some credit is taken to repay arrears. | Request a sustainable repayment rate; get it confirmed in writing where possible. |
| Emergency/friendly credit | Temporary credit that must be repaid from the next top-up. | Treat it as borrowing; plan top-ups to clear it quickly to avoid confusion. |
| Seasonal usage | Heating and hot water costs rise sharply in winter. | Base your budget on winter weeks, not summer weeks. |
If you’re repaying debt: Ask your supplier to explain how much is going to energy use vs repayments each time you top up. If it’s unaffordable, ask to review the repayment rate.
Smart prepay: a middle ground for convenience
If you’re considering prepay mainly for control, smart prepayment can be easier than traditional key/card meters. Availability depends on your property and supplier.
Pros of smart prepay
- Top up from home (online/app/phone, depending on supplier)
- Clearer view of usage patterns and costs
- Fewer trips to shops for top-ups
- May reduce the chance of running out unexpectedly
Questions to ask before switching
- Can I top up online or via an app — and is it instant?
- How do emergency credit and friendly credit work on this meter?
- Will I still be able to switch supplier easily afterwards?
- Will my tariff change because it’s smart prepay?
Common mistakes people make when switching to prepayment
Assuming it’s automatically cheaper
Prices vary by tariff, region and supplier. Always compare based on your meter type and payment method.
Ignoring standing charges
Daily charges still accrue. If you top up irregularly, your balance may fall even when usage is low.
Not planning for winter
Your weekly spend can rise significantly in colder months. Budget using winter consumption assumptions.
Prepayment meter FAQs (UK)
Can I switch supplier if I have a prepayment meter?
Often yes, but it can depend on your meter type and whether you have outstanding debt. Comparing tariffs can show what’s available for your setup.
Will switching to prepay remove my energy debt?
No. If you have arrears, suppliers may set repayment deductions that come off your top-ups. Ask for a clear breakdown and an affordable repayment rate.
Do prepayment meters have standing charges?
Most tariffs include a standing charge whether you’re on prepay or credit. This is why balance can drop even when usage is low.
What happens if I can’t top up?
You may lose supply once credit (including emergency credit) runs out. If you’re worried about self-disconnection, contact your supplier as soon as possible to discuss support options.
Is smart prepay better than key/card?
For many households it’s more convenient because you can often top up remotely and track usage more easily. Availability depends on your property, meter and supplier.
If I switch to prepay, can I switch back to a credit meter later?
In many cases yes, but it depends on supplier policies, debt status, and whether a meter exchange is required. If cost saving is your goal, compare credit and prepay tariff options before making the change.
Looking for personalised guidance? Use the comparison form above to see which tariffs are available for your home and meter type. If you’re unsure what meter you have, select “Not sure”.
Why homeowners use EnergyPlus
Switching decisions are easier when the information is clear and the options are genuinely comparable.
Whole-of-market comparison
See available home energy options for your postcode, fuel type and meter setup.
Plain-English guidance
Understand prepay vs credit in practical terms — rates, standing charges and deductions.
Designed for UK households
Advice tailored to domestic energy users (not business), including regional availability.
What people say
“The comparison made it clear which tariffs actually fit our meter and budget.”
UK homeowner, dual fuel
What people value
“Helpful explanations about standing charges and prepay deductions — no jargon.”
UK renter, electricity only
Ready to see if switching could save you money?
Compare whole-of-market home energy deals for your postcode — and make a confident choice about prepay vs credit.
- Check options for prepay, credit and smart meters
- Understand costs like standing charges and deductions
- Get results tailored to your home
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