Prepayment Gas and Electricity Meters

If you pay for your gas or electricity before you use it, you’re on a prepayment meter, often called pay-as-you-go energy. These meters can be handy if you want to stay in control of what you spend and avoid surprise bills.

But prepayment tariffs can vary widely, and knowing how to top up, manage your balance and compare deals can make a big difference.

Here’s everything you need to know about prepayment (PPM) gas and electricity meters, how they work, their pros and cons, and how you can compare and switch to a better deal with Simply Switch.

What Is a Prepayment (Pay-As-You-Go) Meter?

A prepayment meter lets you pay for your energy in advance. Instead of getting a monthly or quarterly bill, you top up your meter with credit using a key, card or smart app.

This credit is used as you consume gas or electricity, just like a pay-as-you-go mobile phone.

How it differs from standard meters

• Standard credit meters bill you after you’ve used energy.
• Direct debit tariffs usually offer lower unit rates but require regular payments.
• Prepayment meters, meanwhile, deduct credit as you go, giving you more control over your budget.

You’ll still pay a daily standing charge, which covers the cost of maintaining your supply and network connection, even if you don’t use any energy that day.

How Prepayment Meters Work (Top-Ups and Daily Use)

Topping up

You can add credit in several ways:

• In person: at local shops displaying the PayPoint or Payzone logo, or at a Post Office.
• Online or via app: if you have a smart prepayment meter, you can top up anytime from your phone or computer.
• By phone: some suppliers allow you to add credit via automated phone services.

Managing your balance

Most meters show your remaining balance and how much energy you’re using. Smart PPMs often send low-credit alerts, helping you top up before you run out.

Emergency and friendly credit

If you can’t top up right away, most meters offer emergency credit, and some provide friendly credit that stops your energy cutting off overnight or at weekends.

Debt repayment settings

If you owe your supplier money, a small portion of each top-up may go towards paying off your balance. Your supplier must agree a fair and affordable repayment rate based on your circumstances.

Pros and Cons of Prepayment Meters

Like any payment method, prepayment meters have both advantages and drawbacks.

Pros

• Control over spending: you decide when and how much to top up.
• No unexpected bills: your energy is prepaid, so you won’t face catch-up bills.
• Helps with budgeting: ideal for keeping track of your energy costs week by week.
• No direct debit required: useful for those without bank accounts or irregular income.

Cons

• Can be more expensive: prepayment tariffs are often pricier than the best fixed or direct debit deals.
• Self-disconnection risk: if your credit runs out, your supply stops until you top up again.
• Less convenience for some: physical top-ups can be tricky if you live far from a PayPoint or Post Office.
• Limited tariff choice: fewer deals available compared with credit meters.

Smart Prepayment Meters – Why Upgrade?

Smart prepayment meters work just like traditional PPMs, but with added convenience.

Benefits of a smart PPM

• Top up via app or online: no need to visit a shop.
• Automatic balance notifications: get alerts before your credit runs low.
• Usage tracking: see how much energy you’re using in real time.
• Credit transfers: some smart meters let you move credit between gas and electricity.

If your home doesn’t already have a smart PPM, ask your supplier if you can upgrade for free. Most energy companies are installing smart meters at no extra cost.

Can I Switch from a Prepayment Meter to a Standard Credit Meter?

Yes, many customers can switch from a prepayment meter to a standard credit meter if they prefer to pay by monthly bill or direct debit.

Eligibility

• You usually need a good payment history and may need to pass a credit check.
• Renters might need landlord permission, as meter replacements are classed as property alterations.
• Some suppliers charge a small fee for swapping meters, but many will do it for free, especially if you’re moving to a smart meter.

If you can’t switch right away, you could ask to upgrade to a smart prepayment meter first. It gives you many of the same digital benefits while keeping your pay-as-you-go setup.

Involuntary Prepayment Meters and Consumer Protections

Sometimes, suppliers install prepayment meters when customers have built up significant arrears. This should only happen after all other repayment options have been explored and when it’s safe and reasonable to do so.

You can also seek independent advice from organisations like Citizens Advice or National Energy Action.

Moving Into a Home with a Prepayment Meter

If your new home has a PPM, don’t worry, it’s easy to get set up.

• Contact the current energy supplier to register as the new occupier.
• Check for existing debt linked to the meter, you shouldn’t be responsible for previous tenants’ debts.
• Review the tariff: you may be on a default or expensive rate.
• Compare deals: you can switch supplier or request a different meter type once your account is registered.

Lost Key or Card – What to Do

Lost your prepayment key or card? Here’s what to do:

• Call your supplier as soon as possible. They’ll arrange a replacement or issue a temporary top-up card so you can keep using energy.
• Replacement time: usually within 24–48 hours, though this may vary.
• Possible fees: some suppliers charge for replacements, while others don’t.

Compare Prepayment Tariffs

The table below is a live list of the latest prepayment meter tariffs on the market today.

Why prices vary: costs differ by region and usage level, and smart tariffs may include digital perks or lower standing charges.

Start your prepayment comparison now and see how much you could save »

FAQs – Prepayment Meters

Are prepayment tariffs more expensive than direct debit?

Usually yes, though smart PPM deals are narrowing the gap.

Do I still pay a standing charge on PPM?

Yes – it covers the fixed cost of supplying energy to your property.

Can I get a smart prepayment meter?

In most cases, yes. Contact your supplier to book a free installation.

What happens if my credit runs out?

Your supply will pause, but emergency and friendly credit can help until you top up.

Can renters switch from PPM to credit?

Yes, with landlord consent if the meter is part of the property’s fixtures.

How long does switching supplier take?

Usually around five working days, with no interruption to your energy.

Do I need new pipes or cables to switch?

No – switching supplier doesn’t affect your physical connection.

Take Control with the Right Prepayment Tariff

Prepayment meters can be a great way to manage your energy budget, especially if you want full control over your spending or need to pay off arrears gradually.

And with smart prepayment meters, it’s easier than ever to top up, track usage and avoid running out of credit.

Whether you’re staying on pay-as-you-go or planning to switch to a credit meter, make sure you’re getting the best deal available.