How to switch from a prepay to a credit meter

Prepayment and credit meters are ways to pay

A prepayment meter makes you buy gas or electricity before you use it. Credit billing means you use energy first and pay afterwards, often by Direct Debit or after receiving a bill. Changing how you pay can widen your tariff choice, but it is not automatically cheaper for every household.

This guide covers domestic gas and electricity in Great Britain. Northern Ireland has a separate market and regulator, so check Utility Regulator and Consumer Council guidance there.

How prepayment meters work

Traditional prepayment meters use a key or card that you add credit to at a top-up point. Smart prepayment meters can usually also be topped up online or through a supplier app. Keep the physical key or card if your supplier provides one, because it can be useful when an app or network is unavailable.

Daily standing charges still apply when you use little or no energy. If there is not enough credit to collect them, the amount can be taken after the next top-up. Check the meter balance before a holiday and ask your supplier how its meter handles standing charges and debt recovery.

Is prepayment more expensive?

There is no reliable answer based on payment method alone. The energy price cap sets maximum unit rates and standing charges for default tariffs, with separate rates by region and payment method. It is not a maximum annual bill: what you pay depends on how much energy you use.^[1]

Compare the current price cap with the actual prepayment and credit offers available to you. Direct Debit can offer a wider choice of fixed tariffs, while a capped prepayment tariff may cost less than another supplier’s credit offer. Include both fuels, standing charges, exit fees, contract length and how you prefer to budget.

How to ask to pay by credit

If you have a smart meter in prepayment mode, your supplier may be able to switch its payment setting without replacing it. A non-smart prepayment meter may need to be replaced, commonly with a smart meter. Smart meter installation itself should not be charged for, but ask about any deposit or account conditions before agreeing.

A supplier will usually not move an account to credit while money is owed to it. There are important exceptions when prepayment is not safe or practical, so explain your circumstances rather than assuming debt ends the discussion.^[1]

Switching supplier when you use prepayment

You can compare and change prepayment suppliers without first changing the meter to credit mode. Check that the new supplier supports your meter and ask how you will top up after the switch.

Different rules apply when you owe money. Current Citizens Advice and Ofgem guidance says a prepayment customer can ask a new supplier to transfer debt under the Debt Assignment Protocol when they owe less than £500 for gas and less than £500 for electricity. The new supplier must agree to the transfer. If either debt is above the limit, reduce it below the threshold or get debt advice before trying again.^[1]

Transferring prepayment debt to a new supplier is different from being accepted for credit billing. Ask the proposed supplier about both steps separately, including its credit assessment and how any transferred debt would be repaid.

Moving into a home with a prepayment meter

Take opening meter readings when you get the keys and contact the existing supplier straight away. Tell it the date you became responsible for the property and ask it to set up a new account.

Ask the supplier to remove any previous occupier’s debt from the meter, provide a new key or card if needed, and explain how to top up. Once the account is correct, you can discuss credit mode or changing supplier. Renters who pay the supplier directly can normally choose their supplier, but should also check their tenancy agreement before arranging a physical meter alteration.^[1]

If credit is running low

Check how to activate emergency credit before the balance reaches zero. Friendly-hours credit can keep electricity available during specified nights, weekends or bank holidays, but the times and operation depend on the supplier and meter. Temporary credit and standing charges must be repaid.

If you cannot afford to top up, contact the supplier immediately. Ofgem says suppliers must offer support, which can include reviewing debt repayments, a payment break or reduction, more time to pay, hardship support, or additional support credit after an assessment. Agree an affordable repayment plan rather than repeatedly relying on emergency credit.^[1]

Also check energy bill support schemes and independent debt advice. Tell the supplier about children, age, disability, illness, medical equipment, difficulty reaching the meter or any other circumstance that makes loss of supply especially risky.

When prepayment is not safe or practical

Suppliers must consider whether prepayment is safe and reasonably practicable for the household. This is an individual assessment, not a promise based on one condition. Explain any difficulty reaching, reading, operating or topping up the meter and what would happen if the supply stopped.

Ask to join the Priority Services Register if you may need extra help. If the supplier does not act on relevant information, make a formal complaint and seek independent advice. Do not move a gas or electricity meter yourself.