Energy saving tips
Find out how to save money on your energy bills.
You're in control: Because you buy your allowance beforehand, you stay in total control of your energy use
Never overpay: Most energy bills are calculated on expected usage and estimated readings – prepaid meters aren’t
Switch when you want: Unless you’re in arrears to your supplier, you are can make the switch away from a meter whenever you like
Can be inconvenient: You can sometimes run out of credit at inconvenient times, or when the shops are shut, and need to arrange emergency credit
Running out means running out: Once you get to the end of your current credit allowance, your energy is shut off until you can buy more
Requires planning: If you forget to top up your meter before you go on holiday, your power may be switched off while you're away – leaving you to return to a defrosted fridge
A prepayment meter, also known as a pay-as-you-go meter, is a way of getting energy into your home without having to pay a monthly or quarterly bill.
Instead, the meter is only able to supply energy to the home when a compatible key or card has been topped up with credit. Newer smart prepayment meters can be topped up using a smartphone app.
Such meters are commonly used by those on lower incomes or who have arrears from previous credit meters. While they offer an element of control for consumers, they can run out if not topped up, meaning there’s a chance you may go without gas or electricity.
Prepayment meters – also known as ‘pay-as-you-go’ electricity meters – are a common way to pay your energy bills. You need a meter installed in your house, which you top up with credit bought at a local shop or online, usually with a key or a card.
They’re a unique way to pay because you buy your energy in units before you use it. This means you know exactly how much energy you have available to you, and when you’re going to run out. (Though bear in mind you'll also need to pay daily standing charges.)
With the introduction of smart prepayment meters, it’s now much easier to top up via an app on your phone or online. You can also move any excess credit you have in gas to electricity – or vice versa.
In the past, prepayment meters have been more expensive than direct debit due to a "prepayment premium" but this is no longer the case. The government stepped in during the energy crisis to address this, and the current July 2025 energy price cap makes prepayment slightly cheaper than direct debit for typical users.
However, it's important to note that while prepayment is cheaper on the price cap, fixed deals can sometimes offer even greater savings. Plus, Ofgem has announced a 7% price cap reduction from 1st July, which will affect households across the UK.
If you are old, vulnerable, disabled or have small children, prepayment meters are not advised. Rules, brought in by regulator Ofgem in 2023, have strengthened rights against the practice of the forced installation of prepayment meters in some cases.
Switching is easier than you think, thanks to the government’s Energy Switch Guarantee. Here’s how it works:
Step one: Find a recent bill
Tell us who your supplier is, what tariff you’re on and your estimated average usage. If you don’t know how much energy you use, our tool will estimate for you.
Step two: Find a quote
We’ll use these details to show you which suppliers and tariffs are currently on the market. Just pick the one you like.
Step three: Pick a tariff
Once you confirm your choice, enter your Direct Debit details and meter readings so your current supplier can send you an accurate final bill.
Step four: Wait for your switch to complete
Switching is simple: there’s no rewiring or work outside your property, and service won’t be interrupted. If you chose to fast track your switch, you should be with your new supplier in five working days. Otherwise, you can probably expect the switch to be complete 15 days after filling out the switching form on MoneySuperMarket.
Step five: Check your old account
If you’re in credit when you switch, the money should be refunded automatically, but it’s worth checking. Likewise, keep an eye out for any final bills you owe.
Step six: The cooling off period
You can change your mind and cancel the switch up to 14 days after getting the ball rolling. Get in touch with your new supplier if you do want to cancel.
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The practice of forcing customers onto prepayment meters, known as involuntary PPM, has come into sharp focus since the surge in energy prices.
Some suppliers were investigated by Ofgem for overusing the practice, with the regulator laying out new guidelines in April 2023. In short, forcing consumers onto a prepayment meter should be seen as a matter of last resort, with suppliers told to consider asking customers to pay directly from their benefits or offer help setting up an affordable repayment plan for any debts.
Those over 85 living alone should not be forced onto a prepayment meter and neither should anyone with a disability or illness that prevents them from being able to top up. This includes people with a terminal diagnosis. There are also rules against involuntary PPM for those who can’t afford to top up and have a mental health condition, are recently bereaved, have children under five, are pregnant or over 75.
Citizens Advice can help with a scheme called Breathing Space, which gives you 60 days to arrange an alternative to a prepayment meter.
Suppliers should try and contact you 10 times and give you seven days’ notice of an involuntary PPM. If your debt is less than £200 or a bill issued in the last three months has not been paid, they shouldn’t try and install a prepayment meter, either.
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Pre-payment meters tend to have a bad reputation for being more expensive than regular meters, often meaning that less financially well-off customers are harder hit. The upside is that they won’t allow you to rack up huge bills unwittingly because you can only use the energy you have paid for. The benefit of the most recent generation of smart pre-pay meters means that the balance of your meter can be topped up without needing to go to a local shop. If you’re not in debt you may also be able to ask your supplier to switch you to a smart meter, but check whether you’ll face a fee first.
The rollout of smart meters is a Government-backed initiative, so if you haven’t got one, contact your supplier who will probably exchange your old meter for free. A pre-payment smart meter will allow you to see your energy consumption in real time, allowing you to control your energy usage more effectively.
Ashton Berkhauer General Manager • Commercial
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. You may also need to pass a credit check to be able to switch away from a prepaid tariff.
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.
While prepayment meters have traditionally been more expensive than paying by direct debit, new rules brought in in July 2023 by the UK government means prepay customers now pay roughly the same rate as those on direct debit, unless they’re on a fixed rate deal. That’s a big change and means prepayment customers are no longer paying a hefty 20% premium.
However, it’s worth remembering that prepayment meters can cause undue stress if you’re unable to top up, meaning you’ll have no gas or electricity.
Old style prepayment meters, that use a card or key for top ups, are being phased out as part of the wider upgrade to smart meters, which is due to be completed across the UK by summer 2025. Some smart meters can be used as prepayment meters, though, with the ability to top up via a smartphone app rather than going to a local shop.
A prepayment meter only allows you to use the energy you’ve paid for ahead of time, either through a card or key that you top up in a shop, or via a smartphone app. Once it runs out, it will switch off your gas and electricity until you top up.
A credit meter supplies a constant flow of gas or electricity to your home, which you pay for either by direct debit or when you receive a monthly or quarterly bill.
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