Prepayment Energy in the UK: Your 2025 Guide to PAYG, Smart Prepayment and Switching

What is a prepayment (PAYG) meter?

A prepayment meter lets you pay for energy in advance and only use what you’ve already paid for. You top up using a key, card or a smart app. When your credit runs out, your supply may stop until you add more credit, although emergency and friendly credit features can help you stay on supply.

Many UK homes are now moving to smart prepayment, which allows app top-ups, automatic balance alerts and easier switching between prepay and credit modes.

Pros and cons of prepayment

Costs, rates and standing charges

Your total cost on prepayment is based on two parts:

• Unit rate (kWh price): What you pay for each unit of electricity or gas used.
• Standing charge: A daily cost that covers network and supply costs, deducted from your balance even on days you use little or no energy.

Suppliers set their own prices within UK regulations. Tariffs may change over time, and smart prepayment tariffs can differ from traditional key/card tariffs. If you’re unsure whether your current rate is competitive, we can check for you.

How to top up electricity or gas on prepayment

The exact method depends on your meter type and supplier. Common options include:

• PayPoint, Payzone or Post Office: Take your key/card or a barcode/app to add credit in person.
• Online/app top-up: With smart prepayment, add credit through your supplier’s app or web portal.
• Auto top-up & alerts (smart): Set low balance alerts and auto top-ups to avoid running out.

Emergency and friendly credit

Most prepayment meters include emergency credit that you can activate when your balance is low, plus friendly credit that helps keep you on supply during evenings, weekends or bank holidays. Check your meter display or app for specific rules and amounts.

If your key or card stops working

• Check for dirt or damage; gently clean and try again
• Visit a PayPoint/Payzone/Post Office to re-issue credit
• Contact your supplier for a replacement or a temporary code

Smart prepayment: more control, less hassle

Smart prepayment meters let you top up instantly from your phone, track usage in real time and switch between prepayment and credit modes (subject to supplier checks). Benefits include:

• Top up anywhere, anytime — no more emergency trips to the shop
• Low balance notifications and spend insights
• Easier supplier switching and remote tariff updates

Not sure if your meter is smart-enabled? Look for an In-Home Display and an online account/app with top-up options, or ask our team for help.

Switching supplier or changing from prepayment to a credit meter

Many households and small businesses move away from prepayment once they’re ready for monthly billing. With a smart meter, switching modes can be as simple as a remote update (subject to eligibility). If you have a traditional key/card meter, your supplier may replace it with a smart meter first.

What you may need

• Proof of identity and address
• A satisfactory credit check (for some credit tariffs)
• Cleared or actively managed debt on the meter

Energy Plus can review your options, check eligibility and handle the switch with minimal disruption. If prepayment is still your best fit, we’ll aim to find the most competitive PAYG tariff available to you.

Help if you’re struggling with prepayment

If you’re finding it hard to stay on supply, there are steps you can take:

• Debt repayment review: Ask your supplier to reassess repayment amounts based on affordability.
• Priority Services Register: Eligible customers can receive extra support, including communication and accessibility help.
• Grants and schemes: Depending on your circumstances, support may be available through charitable funds or government-backed schemes. Your supplier or local authority can advise.

We can also help you check if a different tariff or meter setup might reduce your costs and stress.

Prepayment FAQs