Preparing for Winter with Prepayment Meters
Written by David Walter, Chief Commercial Officer
30 Aug 2024 - Summer is great for many reasons – sun, holidays, and lower bills. But as the colder months come around, you start sticking the radiator on and bills inevitably start creeping up again. Which is why keeping on top of your energy usage during winter is super important.
This guide will help you navigate the ins and outs of prepayment meters, providing tips and advice on staying warm while keeping costs under control. Whether you're new to prepayment meters or looking to optimise your usage, this guide has you covered.
For more details on how prepayment meters can help you manage your energy costs this winter, visit our Prepayment Meters page.
What’s a Prepayment Meter?
A prepayment meter is a type of energy meter that requires users to pay for their gas and electricity in advance. Think of it as a pay-as-you-go meter. Instead of getting a monthly bill, you add credit to the meter and then use it to run energy through your home.
Some people like this method as they find it gives them more control over their spending.
As of 2024, there have been significant installations of prepayment meters across the UK, with over 4.5 million households currently using them. Ofgem reported that roughly 200,000 of them were installed in the past year!
How Do Prepayment Meters Work?
Prepayment meters allow customers to top up their energy credit in advance. Credit can be added using a key, card, or online method, and the meter deducts the cost of energy used from this credit. This system helps users monitor and control their energy usage closely.
For more detailed information on how prepayment meters work, visit our Prepayment Meters page.
How your top up your prepayment meter
If you have a traditional (non-smart) prepayment meter, you can top up with a key (electricity) or a card (gas). To find out how to top up, click here.
Or, if you’d like an easier way to top up online, upgrade to a smart meter. Learn more here.
If you have a smart prepayment meter, you can find out how to top up here.
Advantages of Using Prepayment Meters
Benefits of a Prepayment Meter
Budget Control: Prepayment meters allow users to control their spending by paying for energy in advance, making it easier to manage budgets.
No Surprise Bills: Since users pay as they go, there are no unexpected bills at the end of the month or quarter.
Debt Management: For those with existing energy debts, prepayment meters can help manage repayments, with a portion of each top-up going towards clearing the debt. To learn more about debt or charges on your meter, click here.
Understanding Standing Charges
What is a Standing Charge?
A standing charge is a fixed daily cost that is applied to all energy meters, including prepayment meters, regardless of how much energy is used. This charge covers the cost of maintaining the energy supply to your home, including the upkeep of the network and admin costs.
How Standing Charges Affect Prepayment Meters
For prepayment meter users, the standing charge is deducted from the available credit on the meter every day, whether or not any energy is used. This means that even if you're away from home and not using energy, the standing charge will still apply and reduce the credit on your meter.
Going Away? Remember to top-up with enough credit
Even if you’re going away and won’t be using any energy, without enough credit, your energy supply may be interrupted.
For more detailed information on standing charges, visit our standing charges help article or refer to this National Energy Action explanation.
What Help is Available if I’m Struggling to Buy Credit?
If you're finding it challenging to keep your prepayment meter topped up, there are several initiatives and support options available:
Energy UK Vulnerability Commitment: This initiative ensures that energy suppliers provide extra support to vulnerable customers, including those using prepayment meters. We offer a number of ways to support customers depending on their circumstances.
Government and Charitable Grants: Various grants and funds are available to help with energy costs, especially during times of crisis or financial difficulty. Citizens Advice offers a comprehensive guide on available options.
If you need extra support – for example you’re elderly, disabled, or have special medical needs – you can join our Priority Services Register for access to additional services. Click here to find out more.
Emergency and Friendly Credit
What is Emergency Credit?
Emergency credit is a feature available on most prepayment meters that provides a small amount of additional credit if you run out and are unable to top up immediately. This feature is intended for emergencies and should not be used as a regular source of credit.
What is Friendly Credit?
Friendly credit is a service designed to ensure that your energy supply does not cut off during evenings, weekends, or bank holidays when top-up services may be unavailable. This credit period typically runs from 4pm to 10am on weekdays and from 4pm Friday evening until 10am Monday morning on weekends. However, it’s important to remember that any credit used during these periods will need to be repaid the next time you top up. For more information, visit our Emergency and Friendly Credit Information page.
Top Tips for Efficient Prepayment Meter Usage
Stay on top of budgeting
It’s a good idea to monitor how much you spend on average each month and use that as a rough budget for your energy. But remember that energy use typically goes up in the colder winter months, so you’ll need to top up a little more. By keeping an eye on your usage you can avoid unexpectedly running out of credit.
Managing Costs and Avoiding Missed Standing Charges
To avoid accumulating debt from standing charges while away from home, it's essential to ensure your meter has enough credit to cover these daily costs, even when you’re not using energy. Always check your balance when you go on holiday!
Managing Winter Costs
You’ll probably start using more energy during winter, due to lower temperatures and longer nights. Make sure to keep this in mind when topping up your meter and consider using energy-saving measures to reduce consumption (and keep your bills low).
For practical advice on managing energy use during winter, check out our Energy Saving Tips Guide and Energy Efficiency Advice.
Energy Efficiency Advice
Implementing energy-efficient practices in your home can significantly reduce your energy consumption and costs. Simple steps like insulating your home, using energy-efficient appliances, and turning off unused devices can make a big difference. For more tips, visit our Energy Efficiency Advice page.
Prepayment meters offer a flexible and controlled way to manage your energy usage, but they also come with specific considerations, such as standing charges and the need for regular top-ups. By understanding how prepayment meters work and using the tips provided, you can make the most of this payment method and keep your energy costs under control.
For more information on our prepayment meter services and to explore your options, visit our Prepayment Meters page.
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