Prepayment meters — where you pay for energy before you use it via a key, card, or app — are more common in rented homes than owner-occupied properties. Many renters feel they are stuck with a prepayment meter, but you have stronger rights than you may realise. This guide explains what your supplier must offer and how to switch if the meter is not right for you.
For more on energy rights for renters, see Renters’ Energy Rights.
What is a prepayment meter?
A prepayment meter requires you to add credit before you can use energy — through:
- A key or card topped up at a PayPoint or Payzone outlet
- A smart prepayment meter topped up via an app or online
When credit runs out, the energy supply stops automatically. Traditional prepayment meters have no flexibility — smart prepayment meters offer emergency credit and ‘friendly credit’ periods.
Prepayment meters are most common in:
- Low-income areas
- Properties with a history of non-payment
- Properties with older metering infrastructure
Ofgem rules on prepayment meter installation (2023 reforms)
Following the Times/Channel 4 investigations in 2023 showing suppliers forcing prepayment meters on vulnerable customers without consent, Ofgem imposed a moratorium on all forced installations. New rules now require:
| Condition | Rule |
|---|---|
| Vulnerable customer | Cannot be force-switched to prepayment |
| Debt under £500 | Supplier must offer alternatives before prepayment |
| Safety concern | Physical installation not permitted if unsafe |
| No consent | Smart meter cannot be remotely switched to prepayment without consent |
Vulnerable customers include those receiving qualifying benefits, households with children under 5, anyone with a medical condition dependent on electricity, and anyone declared vulnerable by their supplier.
Emergency credit and friendly credit
If you have a traditional or smart prepayment meter and run out of credit, you have the right to:
- Emergency credit: typically £5–£10 of credit automatically released when the balance reaches zero — you must repay this when you next top up
- Friendly credit: some suppliers extend supply during evenings (typically 6pm–9pm or 8pm) and weekends, preventing disconnection when top-up points are closed — must be repaid
These protections apply to all prepayment customers. If your supplier is not providing emergency credit, this is a breach of Ofgem’s licence conditions — complain to the Energy Ombudsman.
Switching from prepayment to credit meter
You have the right to request a switch from a prepayment meter to a credit (post-payment) meter. Your supplier must comply unless:
- You have unresolved prepayment debt that makes it impractical (in this case, they can insist on keeping the prepayment meter until debt is cleared)
- A physical meter change is required and the landlord has not consented
If you have a smart meter on prepayment mode
If your property has a smart meter configured in prepayment mode, switching to credit mode can often be done remotely — your supplier can do this without any physical visit. You do not need your landlord’s permission for this as no physical changes are made to the property.
If you have a traditional prepayment meter
A traditional key or card meter requires physical replacement. Your supplier will need to visit. If you are a tenant, you may need to notify your landlord — though the landlord generally has no right to veto the change as long as a credit meter is appropriate for the property.
Fuel Direct: paying debt directly from Universal Credit
If you have prepayment meter debt and receive Universal Credit, Fuel Direct allows your supplier to apply directly to have a fixed amount deducted from your UC payment to clear the debt — preventing disconnection. This is managed between DWP and the energy supplier. Ask your work coach or your supplier to set this up.
What to do if you self-disconnect regularly
If you are regularly running out of prepayment credit:
- Tell your supplier — they must offer you a repayment plan and check whether you are eligible for the Warm Home Discount, hardship funds, or alternative meters
- Check benefit eligibility — the Warm Home Discount (£150/year) and Cold Weather Payments can significantly help
- Contact your local council — the Household Support Fund can provide energy top-ups in genuine hardship cases
- Contact the supplier’s hardship fund — all major suppliers maintain hardship funds for customers in difficulty
Repeated self-disconnection is treated as a welfare concern by Ofgem. Suppliers have obligations to follow up with customers who show this pattern.
Smart meters for prepayment renters
Smart meters in prepayment mode offer several advantages over traditional key/card meters:
- Top up via app at any time (no need to travel to a PayPoint)
- See real-time consumption and credit balance on your in-home display
- Emergency credit available remotely
- Can switch to credit mode remotely if eligible
See Smart Meters for Renters for the full guide on requesting a smart meter as a renter.