Repayment meters are electricity meters and gas meters that work on a pay-as-you-go basis. Although they can help you budget, they are usually more expensive than homes that use standard electricity meters.
Here is what you need to know about them.
How many British households use prepaid electricity meters?
According to data from Ofgem, the energy regulator, about 4 million households in the UK use prepaid meters. Some houses have always been there. However, after other households owe debts on their energy bills, they will be installed by the supplier.
Landlords usually install prepaid meters for tenants.
What are the types and how do they work?
There are many types of prepaid electricity meters. These include key meters, smart card meters and coin-operated meters. The key meter uses an electronic key, sometimes called a token, which contains the customer’s tariff information.
At the same time, the smart card meter has a card that can send your latest information to the supplier when recharging. Coin-operated meters that were once commonplace are now rare. As the name suggests, they topped up hard currency, such as pound coins.
Where do you go to recharge?
Keys and smart cards can be topped up in PayPoint or Payzone stores. The outlets usually include newsstands, garages or post offices. Today, some meters allow you to use apps on your phone, text messages, or buy credit online.
The smart prepaid meter is the latest model, allowing you to view usage information at any time through the home display. It will also show how much credit you have left. You can recharge these meters online or using the app.
Do all major suppliers accept prepaid meters?
In general, yes. Major suppliers such as British Gas, EDF Energy, E.ON, Npower, Scottish Power and SSE (now owned and operated by OVO Energy) all provide prepaid electricity meter prices. Some other smaller suppliers, including Octopus Energy and Bulb, also provide them. Several companies only provide prepaid meters, including Boost and Utilia.
What are the advantages of prepaid electricity meters?
They can be a useful way to control energy use and manage household budgets. Just like pay-as-you-go mobile phones, this is a direct way to choose when and how to spend money. Paying for energy upfront allows you to pay a small amount often, which means you will never overpay.
Like standard meters, you can still switch to cheaper tariffs, although there are often fewer options for suppliers and tariffs. If you want a smart meter, you can use a smart prepaid meter.
What are the disadvantages?
If you need to go out to recharge keys and smart cards, prepaid meters may be inconvenient. If you cannot reach the store to recharge, you may run out of credit and your energy will be shut down. More importantly, if you lose your card or key, it may be troublesome to arrange a temporary card or key.
According to Citizens Advice, a consumer help organization, you should avoid using prepaid meters if you have insufficient credit and no gas or electricity. For example, if you have a long-term health condition, a disability, a medical device that cannot work without a power source, or a young child.
Prepaid meters are also more expensive than standard meters, and there are fewer tariff options. The best energy deals on the market are generally not suitable for prepaid customers.
Please also note that there is a fixed fee for the prepayment tariff (usually 25 pence to 30 pence per day), in the same way as the credit tariff. Whether you use any natural gas or electricity on any given day, you must pay this fee, so you need to have a credit history on the meter.
If you owe a fixed fee, the fee will be deducted the next time you recharge the meter.
Are prepaid meters more expensive than standard meters?
Yes, they are. Converting from prepaid electricity meters and tariffs to credit meters, you can pay arrears through monthly direct debits, thereby saving a lot of money.You can see how much you can save by running a comparison quote on our website Comparison page.
Can I change the prepaid provider?
Generally speaking, yes. As long as you owe no more than £500 for petrol and electricity and no more than £500 for electricity, you can transfer to another supplier.
Please note that your debt will be transferred to your new supplier and you still have to pay it back.
Can you switch from prepaid to standard electricity meter?
Many suppliers allow customers to convert from prepaid meters to standard meters for free. Others may charge you to replace the meter, so please check first.
To cancel the prepayment, the supplier will usually ask you to pay all outstanding debts on the energy account, and they will also check your credit score. Remember, if you are renting a house, you need to get permission from the landlord before changing the meter.
Will the supplier force you to switch to advance payment?
If you are struggling to pay your energy bills and owe a debt with your supplier, or if you are having trouble paying the agreed repayment plan, your supplier may recommend that you install a prepaid meter.
If you refuse to do so, and if you fail to repay the debt, the supplier can apply to the court and install a prepaid meter as a last resort under the warrant.
Can you get green energy transactions through prepaid electricity meters?
Yes, tariffs on renewable energy are available. For example, Bulb and Octopus Energy provide them for prepaid meters.
Ofgem sets a maximum charge per unit of gas and electricity. This is called the energy price ceiling, and it helps ensure that households pay a fair price for their energy.
The current figure of £1,156 per year for prepaid electricity meters is based on a specific level of use-in other words, the natural gas and electricity used by a “typical” customer is averaged across the country.
The upper limit changes with changes in the wholesale energy price. It is worth noting that the price ceiling for standard electricity meters is lower, at £1,138.
What if you can’t recharge?
Energy providers must provide emergency credit to customers who cannot pay for prepaid meter recharge, or if they cannot go to a store to purchase credit, for example, if they self-isolate due to the coronavirus pandemic.
Don’t forget to check if you are receiving all the government benefits to which you are entitled. If you are on a low income or receive a pension credit, you will be eligible for the Warm Home Discount, which is a one-time discount of £140 on your electricity bill from October to March.
What if your prepaid meter fails?
According to Citizens Advice, if the screen is blank or displays messages such as “error”, “call for help” or “battery”, the meter may be malfunctioning. Tell your supplier immediately or you may be listless.
They must send someone to repair or replace the meter within three hours of a working day or four hours of a non-working day-or repair it remotely. If this does not happen, they must pay you £30 in compensation.
common problem
How do you get the prepaid meter readings?
Meters come in many forms, from gauges with dials to the latest digital readings. Some may require the user to insert a prepaid key to obtain the desired reading. Suppliers usually provide information on how to read specific types of meters on their website. For digital displays, you usually need to scroll through the options until you find the reading that interests you.
What if the house you are relocating has a prepaid meter?
You should contact the supplier immediately. Try to avoid using keys or cards to access the meter or add any money to it. Otherwise, you may run the risk of paying extra for the debts of the people who previously lived in the property. If you need to add money to the meter, please tell the supplier. The supplier shall forgive you any outstanding debts, provide you with a new prepaid key or card (depending on the type of meter) and send you information about how the meter works.
What if you lose the key to the prepaid meter?
Contact your supplier as soon as possible so that they can send you a new supplier. Please note that this may take a few days. The first replacement may be free, but there will be a charge afterwards, such as £5. If this is a lost recharge card, you can buy a new card from a PayPoint outlet.
Is there an upper limit for prepaid electricity meters?
Ofgem, the energy regulator, has set limits on how suppliers can charge certain consumers for a unit of energy. It achieves this through a default tariff ceiling, which covers two types of consumers: consumers who use supplier default (or standard variable) tariffs, and consumers who use prepaid meters to pay for energy.
