Prepayment Meter Tariffs – Find the Cheapest Pay-As-You-Go Tariff

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How do prepayment meter tariffs work?

Prepayment energy meters let you pay for your gas and electricity before you use them. You can top up your meter with a card, key, or mobile app. When you add credit to the prepayment energy meter, it will use that to keep your home going.

This prepayment mode is good for anyone who wants to watch their budget and keep track of how much energy they use. It helps you keep costs under control so you do not get big bills. You can use the app or other easy ways to keep your meter topped up and always know where you stand.

The Pros and Cons of Using a Prepayment Meter

Pros:

Cost-effective: As of April 2025, the prepayment price cap level is £1,675 compared to £1,690 for direct debit customers.
Budget control: You pay as you go, so there will be no surprise bills.
No credit checks: This is good for people who have a short credit history.
Friendly credit features: Emergency credit and daily fees can help you avoid getting cut off.
Good for small amounts: You can top up only as much as you need, even if it is a small amount.

Cons:

Top-up inconvenience: Some people still need to top up at local shops or the Post Office. This can take time and is not as easy as other ways.
Risk of disconnection: If you run out of credit, the supply could stop until you top up. There is a bigger risk of being cut off.
Fewer tariffs: There are not as many tariff choices as when you pay by direct debit. You may find fewer options to pick from.
Higher unit rates: If you run out or use emergency credit, you could get higher unit rates. Default rates can also be more expensive.

To make sure you’re not missing out on cheaper alternatives, it’s worth taking a moment to compare energy prices tariffs alongside prepayment options.

The transition from Prepayment Meter to Direct Debit

Switching from a prepayment energy meter to direct debit means you will need to have a credit check. A credit meter will also need to be installed for this change. When you do this, you can get better deals and pay less for each unit of energy. You will also have more tariff choices and different ways to pay your bill.

Process of Changing from Prepayment Meter to Direct Debit

Get in touch with your energy supplier.
Look at direct debit tariffs on Free Price Compare.
Watch out for any fees or setup needs.
Paying by direct debit can make things easy, give you better rates, and let you pick flexible plans.

Benefits of Switching to Direct Debit

Cheaper tariffs: There are better energy deals for people than those with standard prepayment customers.
Convenience: You do not need an electric meter key, and you will not have to make trips for top-ups.
Online tools: You can track your usage with mobile apps and online accounts.
Credit improvement: When you make payments on time, it may help to boost your score.

Compare energy prices for cheaper prepayment deals

Comparison of Prepayment Meter Tariffs

To find the best tariff, compare:

Unit rates and standing charges
Details about the prepayment price cap
Features of smart prepayment and their apps
Tariff structure and the benefits you get

Use comparison tools like Free Price Compare when you want to find gas and electricity meters that use smart pay-as-you-go. These tools help you pick the best option that fits your needs.

Criteria for Comparing Different Tariffs

Unit of energy cost
Daily fee (standing charge)
Emergency or friendly credit rules
Protections from the energy regulator Ofgem

Reviewing the Best Prepayment Meter Tariffs

Consider providers offering:

You can get good top-up options that you can count on.
There are low standing charges, so you do not pay too much.
You can use the mobile app anytime to check or manage your account.
The customer service is good, and they help you when you need it.

The Role of Energy Suppliers in Prepayment Meter Tariffs

Suppliers give different tariff plans and help for prepayment energy meters. You can find choices for electric meter key systems, smart meters, and online top-ups. The suppliers let you know about your energy use and any tariff changes.

List of Energy Suppliers Offering Prepayment Meter Tariffs

British Gas
EDF
E.ON Next
Octopus Energy
Scottish Power
Shell Energy

These suppliers have different tariff plans for you to choose from. Some of these also give you smart prepayment options.

How Energy Suppliers Influence Prepayment Meter Tariffs

Tariffs go up or down because of wholesale costs, rules from regulators, and what each supplier decides. The energy regulator Ofgem looks at the prepayment price cap every 6 months. It does this to keep people safe from paying too much.

Estimate your costs with the energy bill calculator

Assistance for Prepayment Meter Users

Support is there for prepayment customers who find it hard to keep up with costs. There are things like warm home discounts and emergency top-ups. If you need help, it is there for you.

Help Resources for Prepayment Meter Problems

Citizens Advice
Supplier emergency credit lines
Government support during winter months
Help during holidays or weekends

How to Seek Help for Winter Energy Bills?

Contact your supplier if you have questions. You can also check for energy help schemes or visit your local council’s website. Many of these programs start in July and keep running through September. They may even last into the colder months.

Can I Switch Suppliers If I Have a Prepayment Meter?

Yes, you can change your energy supplier even if you use a prepayment meter. If you have a prepayment meter, you are able to choose a new energy supplier. This gives you the option to pick one that fits your needs best. Many people with prepayment meters find it is a good and easy thing to do.

When you compare energy prices options before switching, it’s easier to find the right supplier and tariff for your budget.

Find a cheaper energy supplier before you top up

Different Types of Domestic Prepayment Meters

There are several types:

There are traditional electric meter key models.
Some people use smartcard gas meters.
Now, you can also get smart prepayment meters that let you top up with your mobile phone.

Choosing the right meter comes down to what you need, the technology you can use, and how you like to put money on it.

Gas or Electric Key Meters Vs. Smart Card Meters

Gas or electric key meters need you to top them up in person. But smart card meters let you add credit online or by using an app. Smart meters also show how much energy you use in real time.

Smart Prepayment Meter

These work well with a mobile app or website so you can top up when you need to. Many will also let you see your energy use right away. This can help you plan your budget and stop energy from being cut off.

What is the Prepayment Meter Cap?

The prepayment meter cap sets the most that energy companies can ask for from people who use a prepayment tariff. This helps make sure there is a fair price when you compare it to standard tariffs. Ofgem looks at and reviews this every six months. This helps gas and electricity users feel safe about what they pay.

Compare fixed vs variable tariffs before you top up

FAQ's About Prepayment Meters

A prepayment meter lets you pay for your energy supply in advance. You top up using an electricity key, gas card, or a smart prepayment app. Energy is deducted as you use it, so you only pay for what you load onto the meter.

Yes, prepayment energy tariffs are often slightly more expensive than paying by direct debit. Unit rates and standing charges are usually higher, though the Ofgem price cap still applies.

In many cases, yes. If you have a good payment history and no outstanding debt, your current supplier may allow you to switch to a standard meter or install a smart meter that can work in either mode.

Yes, you can switch. It usually takes about 5 working days. If you owe less than £150 in debt, it can transfer to your new supplier. If you’re a new customer, you may be asked to clear larger debts before switching.

You can top up at PayPoint, Payzone, or Post Offices, or online if you have a smart prepayment meter. Always check you have enough credit, especially before weekends or bank holidays, so your energy doesn’t cut off.

Your supply will stop when your balance reaches zero. Most meters offer friendly credit hours overnight, on weekends, and on bank holidays, to prevent disconnection at inconvenient times. Some suppliers also provide additional support credit if you’re vulnerable or facing temporary difficulties.

Ofgem sets a specific cap for prepayment customers to keep prices fair. Although slightly higher than for direct debit, it still limits what suppliers can charge per unit and for standing charges.

Not necessarily, but many suppliers are replacing older key and card meters with smart prepayment meters. They let you top up remotely, monitor your balance in real time, and help avoid running out of credit.

Yes. Support may include the Warm Home Discount, Winter Fuel Payment, Cold Weather Payments, and supplier hardship funds. Many suppliers also encourage vulnerable customers to join the Priority Services Register, which gives access to extra help like easier top-ups and advance notice of supply interruptions.

Not usually. Direct debit tariffs are normally cheaper, but prepayment gives you more control if you prefer to pay as you go. Compare both prepayment and direct debit deals to see which suits you best.

Yes. Some suppliers offer special tariffs or extra support for vulnerable prepayment customers. This may include reduced rates, emergency top-up allowances, or automatic access to additional support credit. Customers on the Priority Services Register may also qualify for tailored help, ensuring they stay connected during difficult times.

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*The average yearly cost is found by looking at the lowest tariff you can get through Free Price Compare. It is £1,617. If you look at the April 2025 price cap, that is set at £1,755. So, a typical home using both gas and electricity could save £231 by switching. The savings you get will depend on how much your household uses. These numbers are for homes that use a medium amount, as Ofgem says (2,700 kWh of electricity and 11,500 kWh of gas). This amount is based on paying by direct debit and getting your bills online. Prices in the UK are averaged for all regions. The information is right as of 1 April 2025. These savings do not include any cashback you may get.

Page last updated on: 04/08/2025

Page reviewed by: Andrea Troy

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