Calculate your Pay As You Go energy costs with current prepayment rates. Compare with Direct Debit, learn how to top up, and discover how to switch to credit meter.
Calculate your annual Pay As You Go energy costs:
Major change: Prepayment customers now pay SAME rates as Direct Debit customers. Previously, prepay customers paid £80-100/year MORE due to higher unit rates and standing charges.
| Fuel | Prepay Rate (Jan 2026) | Direct Debit Rate | Difference | Annual Cost (Typical) |
|---|---|---|---|---|
| Electricity | 27.69p/kWh + 54.75p/day | 27.69p/kWh + 54.75p/day | £0 (SAME) | £948 |
| Gas | 6.45p/kWh + 31.67p/day | 6.45p/kWh + 31.67p/day | £0 (SAME) | £858 |
| Dual Fuel Total | - | - | £0 penalty | £1,758 |
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Prepayment customers are often low-income households who can least afford higher costs. Charging them MORE for same energy was unjust - those struggling financially penalized with higher rates. Parity means fairest pricing: pay upfront like prepay, but same price as DD customers. Saves typical prepay household £80-100/year - significant for families on tight budgets.
| Factor | Prepayment Meter | Direct Debit | Winner |
|---|---|---|---|
| Annual Cost | £1,758 (typical) | £1,758 (typical) | EQUAL ✓ |
| Payment Timing | Pay BEFORE using energy | Pay AFTER using energy (monthly) | Direct Debit ✓ |
| Budget Control | Complete control - can't overspend | Less control - bills vary monthly | Prepayment ✓ |
| Debt Risk | Can't accumulate debt (emergency credit only) | Can build arrears if bills unpaid | Prepayment ✓ |
| Convenience | Must top up regularly (shop/app) | Automatic - no action needed | Direct Debit ✓ |
| Running Out Risk | Yes - can run out of credit | No - supply never disconnected for non-payment | Direct Debit ✓ |
| Credit Check | No credit check required | May need credit check to switch suppliers | Prepayment ✓ |
| Tariff Choice | Limited - fewer tariffs available | Many tariffs - fixed, variable, time-of-use | Direct Debit ✓ |
| Switching Suppliers | Can switch but fewer accept prepay | Easy - all suppliers accept DD | Direct Debit ✓ |
| Emergency Credit | £5-10 emergency credit available | N/A - bills paid after usage | Prepayment ✓ |
| Friendly Hours Credit | £5-10 free credit outside shop hours | N/A | Prepayment ✓ |
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Verdict: Since parity in July 2024, cost is now EQUAL - decision based on lifestyle not price. Choose prepay if need budget control and can't risk debt. Choose DD if want convenience and wider tariff choice. 60% of prepay customers COULD switch to DD and save time/hassle, but many prefer budget control prepay provides.
If installed since 2017, you likely have SMETS2 smart prepayment meter. Top-up options:
Older meters use physical key or card. Top-up process:
| Household Size | Typical Usage | Weekly Cost | Suggested Top-Up | Frequency |
|---|---|---|---|---|
| 1 person (flat) | 1,800 kWh elec + 7,500 kWh gas | £23/week | £25/week | Weekly or £50 fortnightly |
| 2 people (1-2 bed) | 2,200 kWh elec + 10,000 kWh gas | £30/week | £30-35/week | Weekly or £60-70 fortnightly |
| 3 people (2-3 bed) | 2,700 kWh elec + 11,500 kWh gas | £34/week | £35-40/week | Weekly or £70-80 fortnightly |
| 4 people (3 bed) | 3,300 kWh elec + 13,500 kWh gas | £42/week | £45/week | Weekly or £90 fortnightly |
| 5+ people (4 bed) | 4,100 kWh elec + 17,000 kWh gas | £51/week | £50-55/week | Weekly or £100-110 fortnightly |
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Winter heating costs 40-60% MORE than summer due to increased gas usage. If you top up £30/week in summer, budget £45-50/week Oct-Mar. Build credit buffer in summer (top up extra £10/week May-Sep) to cover winter increases. Running out of credit mid-winter means cold house until you can top up!
If your meter runs out of credit, emergency credit automatically activates to keep supply on until you can top up:
Extra protection outside shop opening hours (evenings, weekends, bank holidays):
To switch from prepay to Direct Debit credit meter, you must:
Call customer service or request online via account. Tell them you want to switch from prepayment to credit meter. They'll check your account for debt and payment history.
Supplier runs soft credit check (doesn't affect credit score). Checks for defaults, CCJs, bankruptcy. Good credit = approved immediately. Poor credit = may reject or require guarantor/security deposit (£100-200 refundable).
If debt over £500, pay down to under £500 (or £0 if supplier requires). Remaining debt under £500 can be added to first few bills (£10-20/month added until cleared).
Engineer visit booked 1-4 weeks ahead. Takes 1-2 hours to replace prepay meter with standard credit meter. FREE installation with most suppliers (some charge £50-100 - ask before booking).
Choose monthly payment date (usually end of month). Supplier estimates annual usage, divides by 12 for monthly DD. First bill arrives 30 days after installation.
Engineer removes prepay meter, installs standard smart meter (if available) or traditional credit meter. Any credit remaining on prepay meter refunded to you (bank transfer or first bill credit).
| Item | Cost | Time | Notes |
|---|---|---|---|
| Meter installation | FREE - £100 | 1-2 hours | Most suppliers free. Ask before booking. |
| Credit check | FREE | Instant | Soft check - doesn't affect credit score |
| Process start to finish | - | 1-4 weeks | Depends on engineer availability |
| First bill | Varies | 30 days after install | Charged for usage since installation |
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Switch to credit meter IF: Tired of topping up, good credit history, stable income, want access to cheaper fixed/tracker tariffs, find prepay inconvenient.
STAY on prepay IF: Need strict budget control, poor credit (can't pass checks), history of missing bill payments, prefer pay-as-you-go to avoid debt, like awareness of usage prepay provides.
Costs are EQUAL: Since July 2024 parity, both prepay and DD cost £1,758/year typical - decision is lifestyle preference NOT cost savings.
Same energy-saving tips apply to prepay customers, but benefit is immediate (credit lasts longer, fewer top-ups needed):
Turn heating down from 21°C to 20°C. Reduces gas usage 10%. Means £35/week winter top-up becomes £32/week - saves £156/year (3 weeks of top-ups!).
Single biggest saving. Air-dry clothes instead. Tumble dryer costs £1.73 per load vs heated airer £0.19 per load. 3 loads/week = saves £240/year. Daily dryer use = £632/year saved!
Replace 10× old bulbs with LEDs. Uses 83% less electricity. £30 cost pays for itself in 4 months, then saves £76/year forever (bulbs last 15-25 years).
10 devices on standby waste £100-243/year. Smart plugs (£20) auto-turn off TV/console/PC at midnight. Saves £100/year with zero lifestyle change.
Heat only when home (6-8am, 5-10pm = 8 hours). Currently heating 16 hours/day? Cut in half saves £375/year = 11 weeks of £35 top-ups eliminated!
Prepay advantage for saving: Immediate feedback! Using less energy = credit lasts longer = fewer top-ups needed = money saved feels REAL. DD customers don't see savings for 1-3 months (next bill). Prepay shows savings within days. Use this to motivate energy reduction - each day credit doesn't drop much = money saved!
Current rates (Jan-Mar 2026): 27.69p/kWh electricity + 54.75p/day standing, 6.45p/kWh gas + 31.67p/day standing. SAME as Direct Debit since July 2024 parity - no longer penalized for prepay! Typical dual fuel £1,758/year.
How it works: Pay BEFORE using energy. Top up via app, website, automatic payment, PayPoint shop, Post Office, or key/card. Smart meters instant credit, old meters insert key/card. Weekly top-up needed £23-51 depending on household size.
Emergency credit: £5-10 automatic when run out, keeps supply on 1-3 days. Friendly hours credit £5-10 extra evenings/weekends when shops closed. Deducted from next top-up. If both run out, supply disconnects until top up.
vs Direct Debit: EQUAL cost £1,758 both. Prepay wins: budget control, no debt accumulation, no credit check, emergency credit. DD wins: convenience, wider tariff choice, easier switching, no top-up needed, can't run out.
Switching to credit meter: Contact supplier, pass credit check, clear debt under £500, book FREE engineer install 1-4 weeks. Rejected if debt over £500, poor credit, recent disconnections. STAY prepay if need budget control or can't pass credit check.
Top 5 savings: Heating timer 8 hrs £200-400/year, avoid dryer £632/year, thermostat down 1°C £80-120/year, standby off £100/year, LED bulbs £76/year. Total potential £1,088-1,428/year = 31-41 fewer £35 top-ups!
Prepay tips: Monitor credit daily, track top-ups frequency, build summer buffer £100-150, keep emergency £40 cash, set automatic top-up £20 when below £5, compare suppliers for better service.
Who should use prepay: Tight budgets needing control, poor credit can't get DD, debt avoidance priority, temporary accommodation, want awareness of usage. Choose DD if want convenience, stable income, access to cheaper fixed/tracker tariffs.
Bottom line: Prepayment now FAIR - same price as DD, no penalty. Choose based on lifestyle: prepay for control, DD for convenience. 4 million UK prepay customers saved £80-100/year from July 2024 parity. Can reduce costs further £1,000+/year through heating efficiency, avoiding dryer, LED bulbs, standby elimination. Prepay provides immediate feedback on savings - credit lasts longer when using less = powerful motivation to reduce usage!