Ask Grace: Prepayment meters - what to look out for

We’ve got some important information for you if your energy supplier has recently moved you onto a prepayment meter or told you they might move you.

A prepayment meter makes sure you pay for your energy before you use it, either by topping up a card, key, or via an app.

In the past, suppliers would move customers onto prepayment meters against their will when they hadn’t paid their bills. Recently, Ofgem (the UK energy regulator) asked all energy suppliers to suspend the forceful installation of prepayment meters for customers in arrears.

Here, we answer some common questions on pre-payment meters.

Can I be forced onto a prepayment meter?

Your supplier can’t force you to move to a prepayment meter if:

• It isn’t safe or practical for you
• You suffer from an illness, a disability or disconnection that would cause you harm
• You can’t get access to the meter 
• You can’t travel to a shop to top it up
• You can’t afford to top it up

Can smart meters be switched to a prepayment meter?

Smart meters can be switched to prepayment remotely without the need for a court warrant. It’s important that you contact your supplier to ask for help as soon as possible if you’re on a smart meter and are struggling to pay your energy bills.

Can I change to a credit meter?

With a credit meter you receive a bill for the energy you've already used, and payment is usually made by direct debit. There is no risk of running out of credit.

If you’re a vulnerable customer on a prepayment meter, write to your supplier explaining why it isn’t safe or practical for you to remain on this meter. If your prepayment meter is causing you financial hardship explain why this is to them.

There is usually no charge to move to a credit meter, but your supplier may request a credit check and review your payment history. They could also ask for a deposit and for you to clear any arrears you have or move you on to a repayment plan.  You can find out more about moving from a prepayment meter to a credit meter on Citizens Advice’s website.

Can I claim compensation?

If you were forced to switch to a prepayment meter against your will and your energy supplier didn’t fully explore alternative options, they weren’t complying with the rules.

You could request to remove the prepayment meter and claim compensation, depending on the outcome of an Ofgem investigation. You can find out more about how to complain about your energy supplier on the Ofgem website.

The Priority Services Register

This is a free service, which makes sure extra help is available to people in vulnerable situations. If you rely on energy for medical reasons, register now by contacting your energy supplier or network operator. You can find out more about the Priority Services register on the Ofgem website.

Help with money management and debt

Remember, we’re here to support you if need budgeting and debt advice. Our Pound Advice service can help you manage your money better or deal with any debt. You can find out more about Pound Advice on our financial advice and debt management.

We’ve also put together a list of areas you may find useful along with links to trusted websites:

• Prepayment meter explained by Ofgem
• How to move from a pre-payment meter by Citizens Advice
• Complain about your supplier by Ofgem
• How to complain to the Energy Ombudsman
• Help if you’re struggling to pay your energy bill by Moneysavingexpert.com