Prepayment or ‘pay-as-you-go’ meters are a type of gas and electricity meter that require you to pay for your energy before you use it. This is different to a credit meter where you pay for your energy after you use it.
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Around four million households across the UK are on prepayment meters, according to the energy regulator Ofgem. Here’s what you need know about them.
Much like pay-as-you-go mobile phones, prepayment energy meters must be topped up with credit in advance. The method of top-up can vary depending on the energy supplier and meter, but it will usually be a token, key or smartcard.
Top-ups can be made at your local Post Office or any shop where you see the PayPoint or Payzone logo, such as newsagents, local corner shops, garages and supermarkets.
Some older prepayment meters are coin operated, where you put money directly into the meter, although they are now quite rare.
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Smart meters are the new generation of gas and electricity meters. They allow you to view how much energy you’re using at home in real time in pounds and pence, with the aim of helping you to cut down on energy usage and save money.
All households in England, Scotland and Wales must be offered a smart energy meter by the end of 2025. This includes smart prepayment meters. Your energy supplier will tell you when you can get one, but you can also request one yourself.
Smart prepayment meters mean you can top up online or via an app on your mobile phone or tablet, without the need to leave the house. If you set up an online account, you will also be notified when you’re about to run out of credit.
If you can’t afford to top up your meter or you can’t get to an outlet to buy credit, most prepayment meters have emergency credit you can use. This is typically around £5 for electricity and £10 for gas.
Note that prepayment tariffs have a standing charge of around 25p to 30p a day that must be paid regardless of whether you use any gas or electricity. You’ll need enough credit to account for this.
Your property may have already had a prepayment meter fitted when you moved in, or you may have asked your supplier to fit one to make it easier to budget. If you are renting, your landlord might have opted to have a prepayment meter fitted to ensure tenants do not leave behind unpaid bills.
Your energy supplier may choose to fit one if you have fallen into debt on your energy bills. Prepayment meters can help households repay outstanding debts in small amounts, rather than in one lump sum. If you top up your meter with £25, for example, £5 of this might go towards the existing debt and the remaining £20 towards new energy.
Your choice of tariff will be more limited if you have a prepayment meter, but it’s still worth shopping around to see whether you could save money by switching.
Thanks to the Debt Assignment Protocol, you’ll still be able to switch if you’re in debt to your supplier, providing you don’t owe more than £500 for your gas and £500 for your electricity. Your debt will be transferred to your new supplier, and you’ll repay them instead based on the new terms of your agreement.
The switching process is the same as it is with a credit meter. Once you’ve run a comparison and found a new prepayment tariff to move to, your new supplier will take care of the switch. The switch should take around 21 days to be completed.
Prepayment meters can be useful as they help with budgeting. Also, as of 1 July 2023, the price differential between prepayment meters and standard credit meters no longer applies. Prior to this date, prepay customers were charged more than direct debit customers, ostensibly to account for greater infrastructure costs, but the government decreed that the two types of meter should have the same charging structure in the spring of 2023.
However, if you would prefer a credit meter, most energy suppliers will allow you to switch, providing you meet certain conditions. You’ll usually need to pay any outstanding debt on your account, for example, and you may need to pass a simple credit check.
Many suppliers will install a new meter for free, but others may charge, so check first. If you’re renting, you’ll need to get your landlord’s permission to switch meters.
If you’re moving out of your home, aim to run the balance left on the prepayment meter as close to zero as possible. Contact your energy supplier in advance with your new address so that any remaining credit can be refunded. Or a repayment plan can be set up if you are in debt.
Don’t leave the key or card in the meter as this will drain the meter’s battery. Instead, leave it with your landlord or next to the meter for the new owners.
If you move into a property with a prepayment meter, contact the energy supplier as soon as possible. Try not to top up the meter before you move in as you could be paying for the previous occupants’ debts. If you do top up, your supplier should refund you for any extra charges applied.
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The prepayment price cap was introduced by Ofgem in 2017. Updated quarterly, it limits the amount energy suppliers can charge per kWh of gas and electricity (also known as the unit rate). Its purpose is to help ensure customers are protected from being overcharged.
A similar cap is in place for those with credit meters who are on standard variable or “default” tariffs. This is also reviewed quarterly.
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For those affected by COVID-19, please click this link to learn more about the Electricity Relief Program.
Prepaid electricity has become an increasingly popular option for homeowners and renters alike, offering a flexible and convenient way to pay for energy usage. However, many people still have questions about how it works, what the benefits are, and how to choose the right provider. In this blog, we will answer the top 5 most common questions asked about Plano prepaid electricity and explain why using a Plano Texas prepaid electricity company like Pronto Power is a great choice.
Prepaid electricity works by allowing customers to pay for their energy usage in advance, rather than receiving a bill at the end of the month. Customers can purchase electricity credits online or at a retail location, and these credits are applied to their account as they use electricity. When their account balance runs low, customers will receive notifications and can top up their account as needed.
Prepaid electricity offers a number of benefits, including:
Cost savings: Prepaid plans often have lower rates than traditional postpaid plans, which can result in significant savings over time.
Flexibility: Prepaid plans allow customers to pay for only the energy they use, with no contract or cancellation fees. This gives customers greater control over their energy usage and budget.
Convenience: Prepaid plans are easy to set up and manage online, with no credit check or deposit required. Customers can also monitor their energy usage in real-time, which can help them avoid unexpected charges.
When choosing a Plano prepaid electricity provider, it’s important to consider factors such as pricing, customer service, and flexibility. Look for providers that offer competitive rates, easy account management tools, and responsive customer support. Additionally, choose a provider that offers a range of payment options and has a good reputation in the industry. Pronto Power offers easy setup and the lowest rates in Texas.
Pronto Power is a Plano prepaid electricity provider that offers a number of unique benefits to customers, including:
No deposit required: Unlike many other providers, Pronto Power does not require a deposit to set up service.
No credit check: Pronto Power does not require a credit check to sign up, making it a great option for customers with poor credit or no credit history.
Real-time usage alerts: Pronto Power sends customers alerts when their account balance is running low, so they can top up their account and avoid service interruptions.
Flexible payment options: Pronto Power offers a range of payment options, including online, phone, and in-person payments.
Signing up for Pronto Power prepaid electricity is easy. Simply visit the Pronto Power website and enter your zip code to see if service is available in your area. From there, you can choose your plan and sign up online. Once your account is set up, you can start using electricity immediately.
Prepaid electricity is a flexible and convenient way to pay for energy usage, and using a Plano prepaid electricity provider like Pronto Power offers a number of unique benefits. By considering factors such as pricing, customer service, and flexibility, you can choose the right provider and enjoy cost savings, convenience, and control over your energy usage.
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