How to switch from a prepay to a credit meter

Introduction

Most UK households pay for their energy after they use it, using a credit meter and a monthly Direct Debit. But millions still use a prepayment meter, paying in advance with a key, card, or app. While pay-as-you-go helps some people manage a tight budget, it can be highly inconvenient. If you want to access a wider range of tariffs or simply stop worrying about topping up, moving to a credit meter is a practical step.

This page explains how to change your meter, what it costs, and the rules suppliers must follow. It also covers what happens if you rent your home, have a poor credit history, or currently owe money to your energy provider.

Why move to a credit meter?

Using a prepayment meter means you pay for your gas and electricity before you use it. When the credit runs out, the energy stops. This is known as self-disconnection. This is a constant worry for many households, especially during winter.

Moving to a credit meter changes how you manage your bills. Instead of topping up in advance, your supplier bills you for what you have already used. You usually pay this through a monthly Direct Debit. This means your energy supply stays on, even if you use more than you expected in a given month.

It is also a matter of safety and health for some people. If someone in your home relies on medical equipment that needs constant power, such as a CPAP machine for sleep apnea, a home dialysis machine, or a stair lift, losing power is dangerous. In these cases, a prepayment meter is not suitable. Energy suppliers must recognise this and allow you to switch to a credit meter to keep a constant supply.

On top of this, meters are sometimes located in awkward places, like high up on a wall or in a dark communal cupboard. If you have a disability or limited mobility, reaching the meter to insert a key can be difficult or unsafe. A credit meter removes the need to interact with the meter physically.

Costs and the prepayment premium

Historically, prepayment customers could pay more than comparable Direct Debit customers. Ofgem levelised prepayment and Direct Debit standing charges from April 2024, reducing this difference on capped default tariffs. Unit rates and overall costs can still vary by payment method and region.^[1]

Under the Ofgem price cap for July to September 2026, a typical household using a credit meter and paying by Direct Debit spends around £1,663 a year. A prepay household on a standard tariff will pay a very similar amount for the same energy use. Despite this change, having a credit meter still gives you a major financial advantage. The price cap only limits standard variable tariffs. It does not apply to fixed-rate deals. Energy suppliers reserve their cheapest, most competitive fixed tariffs for customers with a credit meter who pay by Direct Debit.

When wholesale energy prices rise, as they did by roughly 13% in July 2026, fixing your tariff becomes an attractive way to lock in a lower rate and protect yourself from future hikes. If you stay on a prepayment meter, you are locked out of most of these fixed deals. Switching to a credit account opens up the whole market, letting you shop around for the best discount.

How to make the switch

Changing your meter type is a straightforward process, but there are a few steps you need to follow to ensure it goes smoothly.

If you already have a modern smart meter, the process is even easier. The supplier can usually change the meter from prepay to credit mode remotely. This means no engineer visit is needed, and the change can happen very quickly. Before the switch takes place, make sure you write down the exact amount of credit left on your meter. Take a photo of the screen if you can. You will not lose this money. Your supplier will transfer the leftover balance to your new credit account, which will reduce your first few bills.

Credit checks and security deposits

When you move to a credit meter, the supplier is agreeing to give you gas and electricity before you pay for it. To protect themselves, they want to be sure you can afford the monthly bills. This is why they run a credit check. A credit check looks at your financial history, including loans, credit cards, and how reliably you pay other bills. If you have a good credit score, the check happens quickly in the background, and the supplier will approve your request.

If you have a poor credit history, or if you simply do not want the supplier to run a credit check, you still have options. You will not be automatically blocked from getting a credit meter. Instead, the supplier will usually ask you to pay an upfront security deposit.

The deposit amount varies by supplier, but it is often based on your expected energy use for a few months. While finding the money for a deposit can be hard, it is a practical way to bypass a credit check and get access to better fixed tariffs. The supplier holds this money and will eventually return it to you, usually after a year of paying your bills on time, or when you switch to a different energy provider.

Managing debt and switching

Dealing with energy debt can make switching more complicated, but it does not make it impossible. The rules depend on whether you want to change your meter type with your current supplier, or if you want to switch to a completely new energy company. If you want to stay with your current supplier and move from prepay to credit, they will usually insist that you pay off any outstanding debt first. If you owe them money, they are unlikely to approve a credit account because they already see you as a financial risk. You will need to clear the balance or agree to a strict repayment plan before they change the meter.

However, the rules are different if you just want to switch to a new supplier while keeping your prepayment meter. Under Ofgem's Debt Assignment Protocol, you can move to a new energy provider as long as your debt is less than £500 per fuel. This means you can owe up to £500 for gas and £500 for electricity (up to £1,000 in total) and still switch. Your debt simply moves with you to the new supplier, and you continue paying it off through your meter.

Renting a home

If you live in a rented property, you might wonder if you are allowed to change the meter. The short answer is yes, provided you pay the energy supplier directly. If your name is on the energy bill, you have the right to choose your supplier and your meter type. You do not legally need your landlord's permission to move from a prepayment meter to a credit meter.

However, it is highly recommended that you tell your landlord before you make the change. You must also check your tenancy agreement. Many contracts include a clause stating that you must return the property in the exact same condition as when you moved in. This includes the type of energy meter.

If the property had a prepayment meter when you arrived, the landlord might demand that you change it back to a prepayment meter before your tenancy ends. If you fail to do this, the landlord could argue that you have broken the contract and may try to deduct the cost of replacing the meter from your security deposit. Since changing a meter back can sometimes take time, it is best to have an open conversation with your landlord early on. Many landlords actually prefer credit meters, as it makes the property more appealing to future tenants.

Smart meters vs older analogue meters

The type of meter currently on your wall will dictate how easy the switch is. Older analogue prepayment meters use a physical key or card that you insert into a slot. They cannot be reprogrammed to work as a credit meter. If you have one of these, the supplier has to send an engineer to remove it and install a new one.

Today, suppliers will almost always replace an old analogue meter with a modern smart meter. Smart meters send your readings directly to the supplier, so you never have to submit them yourself. You do not have to accept a smart meter if you strongly object, but refusing one makes the process much harder. Many suppliers will only offer their best tariffs if you agree to a smart meter.

If you already have a second-generation smart meter (known as a SMETS2), the process is entirely different. These meters are designed to switch between prepayment and credit modes remotely. The supplier simply sends a signal to the meter, and it changes over. No engineer is needed, and your power is not interrupted. In fact, the rules now state that if a home already has a SMETS2 smart meter, suppliers are no longer allowed to install a physical prepayment meter. They must use the smart meter's built-in prepayment mode instead. This makes it much easier for future tenants or owners to switch back to a credit account.^[1]

New rules on forced prepayment and compensation

Following serious concerns about involuntary prepayment installations, Ofgem published its Code of Practice in April 2023 and its requirements are now reflected in supply licences. Suppliers must not install a prepayment meter without consent for the highest-risk households, including homes that need a continuous supply for health reasons. Before restarting installations, suppliers must also refrain where someone is over 75 or under 2.^[1]

To ensure suppliers follow the rules, Ofgem now publishes data every quarter showing exactly how many forced installations each company has carried out.

If you had a prepayment meter wrongly installed in the past, you might be owed money. Following investigations, several suppliers have set aside huge funds to compensate victims. For example, in May 2026, British Gas agreed a package including compensation for affected 2018–21 customers, up to £70 million of debt write-off for vulnerable customers and a £20 million payment to Ofgem’s Voluntary Redress Fund. For relevant wrongful installations between January 2022 and January 2023, suppliers were expected to identify and contact affected customers about compensation or debt write-off. If you have not been contacted and think your case was missed, ask your supplier to review it or seek advice from Citizens Advice.

Will it cost money to switch?

One of the biggest worries people have is that upgrading their meter will be expensive. In reality, switching from a prepayment meter to a credit meter is almost always completely free. None of the major UK energy suppliers will charge you a fee to change your meter. They cover the cost of the engineer and the new equipment.

You should not normally be charged to have a smart meter installed. If your supplier says it will charge a fee, contact Citizens Advice for help before agreeing to pay. As well as this, if you need to switch to a credit meter because of a health condition, a disability, or because you rely on medical equipment, it is strictly prohibited for any supplier to charge you. If a company tries to ask for a fee in these circumstances, you should refuse and report them to Citizens Advice immediately.