Prepayment meters

Sometimes prepayment customers are charged more for each unit of energy than people on standard credit meters. In fact, the cheapest prepaid tariff (£1,052, according to Ofgem) was found to be over £200 more expensive than the cheapest direct debit tariff (£846) in August 2019.*

Being on a prepaid meter also means you’ll miss out on the best offers, such as fixed rate tariff deals. However, increased competition is leading to more competitive pricing. 

The current price cap for pre-pay customers was set in August 2021 and stands at £1,309. The caps are reviewed every six months and will next be updated in February 2022. 

Some people are able to top-up their gas and electricity key online, but in most cases you will need do it in person. You can load money onto your prepaid keys and cards at the Post Office or at a shop with a PayPoint or a PayZone machine.

Once you’ve added a new balance, you simply insert the card or key into the meter and the money gets topped-up. Some suppliers will give you emergency credit for when you run out of balance, but this will need to be repaid. And if you don’t top-up your key or card, you risk losing power to your home.

If your prepaid key or card is lost or damaged, you should contact your energy supplier immediately. They will be able to sort a replacement – sometimes you can collect one from your local charge point while you wait for your new one to arrive – but you may be charged for any new cards or keys.

Smart meters can be set to prepayment mode or credit mode, so if you are a prepayment customer and you have had a new smart meter installed, the good news is that you can top up on an app or online.

If you rent, you need to seek permission from your landlord before you can remove a prepaid meter. Once you’re sure you want to change to a credit tariff, there are a few ways you can request the removal of one – but be warned that you may incur a fee, because suppliers may pass the cost on to you.

If you find a new supplier you want to switch to, you can ask them to remove the prepaid meter for free. Some energy companies will do this, but others will charge. If you want to stay with your existing provider, you may be able to negotiate the removal of the prepayment meter if you switch to one of their other plans.

If you’re in debt with an energy supplier, they may install a prepayment meter to manage the arrears. This is done to help you pay off the debt in small amounts, rather than lump sums, as well as paying upfront for the energy you use. 

Forced prepayment meters are meant to be used as a last resort, as the prepayment tariffs can be more expensive, but some companies opt for it over traditional payment plans because those can be defaulted on.

We help you compare prices from a wide range of energy suppliers, so you can find the right deal for your needs.

It only takes a few minutes to compare tariffs and see what's out there.  All you have to do is answer some simple questions, and we'll show you tariffs and offers from household-name energy companies. 

We can help you switch to tariffs from most companies directly through MoneySuperMarket.  Just click the green button, answer a few more questions, and you’re done.

If you’d prefer to talk to someone, you can call us on 0800 177 7087. We can answer any questions you might have, and even switch you to a new deal over the phone.

Compare energy deals now

MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.

• Take control of your credit score by checking and improving it for free with Credit Monitor
• Stay abreast of our best energy deals with Energy Monitor, our energy monitoring service

So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.

But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.