16/10/2026
β‘ Thinking about a prepayment meter? Hereβs what to weigh up first.
Prepayment (or pay as you go) works well for some households, but it isnβt right for everyone. Before you switch, itβs worth knowing the pros and cons π
β
The upsides
- It can help you budget
- You choose how much to top up, and when
- Itβs easy to keep an eye on your credit and how much energy youβre using
- If youβre on a standard variable tariff, the unit rate is currently a little cheaper than paying by Direct Debit
β οΈ Things to watch out for
- If your credit runs out, your supply can go off
- The daily standing charge keeps building up even when youβre not using gas or electricity, so a meter left without credit over summer can leave you with a debt to pay back when you next top up
- Costs arenβt spread across the year, so winter bills can feel much higher
π« When prepayment may not be suitable
If running out of credit would put your health at risk, or a disability or health condition makes it hard to reach or top up the meter, prepayment might not be safe for you. Suppliers must follow strict Ofgem rules before fitting one without your agreement.
π‘ Run out of credit at night or at the weekend? Ask your supplier about emergency credit or βfriendly creditβ hours, but remember it has to be paid back when you next top up.
Not sure whatβs best for your home, or already on a prepayment meter and finding it tough? Our friendly advisers can talk you through your options, and our advice is free.
π Find out how we can help: severnwye.org.uk/advice-support
π Or call us free on 0800 500 3076