Are prepayment meters more expensive?

Prepayment tariffs are now capped at the same level as standard credit tariffs (since July 2023). However, prepay customers historically paid more, and topping up in inconvenient ways (shop fees, travel costs) can add costs. Smart prepay meters make topping up easier and cheaper.

Can I switch from prepay to a credit meter?

Yes. Contact your supplier to request a switch. You may need to pass a credit check and clear any debt on the meter first. The meter swap is usually free. If you have a smart meter, the switch can be done remotely without an engineer visit.

Can my energy supplier force me onto a prepayment meter?

Suppliers can install prepayment meters for debt recovery, but only as a last resort following strict rules. They must not force-install if you are vulnerable, during winter for certain households, or without exhausting other options. New protections (since 2023) make forced installations rarer.

Prepayment Meters UK — How They Work + Your Rights | PocketWise

Prepayment Meters UK — How They Work + Your Rights

Everything you need to know about prepayment meters. How they work, costs, topping up, switching to credit, and your rights if you're forced onto prepay.

By PocketWise · 1 December 2025 · Last reviewed: 20 March 2026 · 4 min read

Around 4 million UK households use prepayment meters — paying for energy before you use it. Whether you have chosen prepay or been placed on it for debt, understanding how it works helps you manage costs and know your rights.

How Prepayment Meters Work

Feature	Detail
How you pay	Top up before you use energy
What happens if empty	Supply disconnects (“self-disconnection”)
Top-up methods	Apps, PayPoint/Payzone, key/card, online, phone
Emergency credit	Small amount available when you run out
Friendly credit	Supply stays on overnight/weekends even if empty
Standing charge	Deducted from balance daily

Types of Prepayment Meter

Type	How You Top Up
Traditional (key/card)	Physical token at PayPoint/Payzone shop
Smart prepayment	Via app, online, text, or at shop

Smart prepay is much more convenient — you can top up from home at any time.

Topping Up

Where to Top Up

Method	Availability	Fee
Supplier app	24/7	Usually free
Online (supplier website)	24/7	Usually free
PayPoint (shops)	Shop hours	Usually free
Payzone (shops)	Shop hours	Usually free
Post Office	Shop hours	Usually free
Automated phone line	24/7	Usually free

Minimum Top-Up

Method	Typical Minimum
App/online	£5–£10
Shop (key/card)	£5–£10
Emergency credit	£5–£10 (automatically deducted on next top-up)

Emergency and Friendly Credit

Emergency Credit

Feature	Detail
What it is	Small credit available when balance reaches £0
Amount	Usually £5–£10
How to activate	Depends on meter (button press or automatic)
Repayment	Automatically deducted from next top-up

Friendly Credit

Feature	Detail
What it is	Supply stays on during certain hours even if empty
When	Typically overnight, weekends, bank holidays
Purpose	Prevents disconnection when shops are closed
Not a loan	You must still top up when shops open

Self-Disconnection

What It Means	Detail
Definition	Running out of credit and losing supply
Risk	No heating, lighting, or cooking ability
Who’s affected	Around 2 million households self-disconnect annually
What to do	Top up as soon as possible; contact supplier if struggling

If You Cannot Afford to Top Up

Action	Detail
Contact your supplier	They must help vulnerable customers
Ask about hardship funds	Many suppliers offer emergency credit or grants
Contact Citizens Advice	Free support and advice
Use emergency credit	Short-term solution
Check benefits eligibility	May qualify for support (energy grants)

Costs Compared

Tariff Type	Price Cap Level
Prepayment	Same as credit meter (since July 2023)
Standard variable (credit)	Same as prepayment
Fixed tariff	May be more or less than cap

Note: While unit rates are now the same, prepay customers may have additional costs:

Travel to top up
Time spent topping up
Risk of running out (no supply)

Switching from Prepay to Credit

Why Switch

Reason	Benefit
Access to more tariffs	More competition, potentially better deals
Convenience	No topping up
Direct Debit discounts	Often cheaper to pay monthly by DD
No disconnection risk	Supply continues even if you miss a payment

How to Switch

Step	Detail
1	Clear any debt on your prepay meter
2	Contact your supplier
3	Pass a credit check (usually soft check)
4	Supplier arranges meter swap or remote switch
5	Set up Direct Debit payments

If You Have a Smart Meter

Feature	Detail
Switch remotely	No engineer visit needed
Same-day change	Often completed quickly
No physical meter change	Just a mode switch

Being Forced onto Prepay

When Suppliers Can Force-Install

Allowed	Not Allowed
After exhausting other debt recovery options	Without warning or court warrant
With proper notice (usually 7+ days)	To vulnerable customers (elderly, disabled, seriously ill)
If debt is for energy (not other debts)	During winter for certain customers
With engineer access or warrant	Without considering circumstances

New Protections (Since 2023)

Protection	Detail
Vulnerability assessment	Mandatory before forced installation
Winter ban	No forced installs for certain vulnerable groups in cold weather
Ofgem scrutiny	Suppliers face penalties for improper installs
Right to challenge	Can dispute with supplier and Energy Ombudsman

If You’re Being Threatened with Forced Prepay

Action	Detail
Contact your supplier	Explain your circumstances
Mention vulnerabilities	Illness, disability, elderly, children
Negotiate payment plan	Often the supplier will agree
Ask for help	Apply for hardship funds
Seek advice	Citizens Advice, StepChange
Challenge the decision	Formal complaint, then Ombudsman

Your Rights

Right	Detail
Same pricing	Prepay cap now matches credit meter cap
Emergency credit	All prepay meters must offer this
Priority Services Register	Extra support if vulnerable
Switch to credit	Right to request if you clear debt
Challenge forced install	Formal complaints process
Supplier must not disconnect	Elderly, disabled, seriously ill in winter (if on Priority Register)

For more on managing energy costs, see our energy price cap guide and energy grants and schemes.