Understanding Prepayment Meters and Smart Meters

In short, a prepayment meter is a ‘pay-as-you-go meter’.

What is a prepayment meter?

They can be helpful ways to manage budgets and the amount you spend on gas or electricity because you can pay in small amounts. However, due to their nature, customers don’t always get the best rates.

Additionally, when your prepayment amount has been used, you’ll run out of gas and electricity. This can cause serious problems for some people.

What is a smart meter?

A smart meter measures how much energy you’re using in near real-time. On the meter’s display, you can see how much your energy consumption is costing you. They’re free to install and send meter readings to your supplier automatically.

They also replace analogue credit and prepay key meters.

Benefits of switching to a smart meter include:

  • You can see how much energy you’re using in near real-time
  • They help you better understand your energy use at home
  • They help you identify where you could be wasting energy
  • They could help you access schemes and tariffs that reward you for changing how and when you use energy (e.g. National Grid Energy System Operator’s Demand Flexibility Service)

 

If you prepay for your energy, upgrading to a smart meter gives you additional features you don’t have with an analogue meter. For example:

  • You have more ways to top up your credit (online, over the phone, or in a shop)
  • Financial support from the government or energy supplier can then be added to your meter automatically (so you don’t need to wait for a voucher in the post)

If you rent your home and your energy bills are in your name, you should be able to request a smart meter in a few simple steps. However, if you’re unsure, you should check with your landlord or letting agent before requesting one.

To see how to request a smart meter, view this page on the Smart Meters website.

Financial support for those using prepayment meters

Warm Homes Suffolk is offering specific support for prepayment meter customers.

Their help includes the following:

  • Emergency access to fuel payments
  • Support to switch away from prepayment meters and finding suitable suppliers
  • Draught-proofing windows and doors to help keep heat in the home (and reduce energy costs)
  • Further signposting for other services and grants

To learn more about tenant financial support, view this article.

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