Prepayment Meter: Your Rights and How to Switch to a Credit Meter

Prepayment meter costs and your rights

Having a prepayment meter does not automatically mean you pay more for energy. Ofgem sets price-cap rates by payment method, region and tariff. So, check the rates available to you rather than assuming prepayment costs more.

However, your payment method can affect the rates you see. Your supplier must also follow Ofgem’s rules when it considers moving you to prepayment to recover debt. Suppliers should use prepayment as a last resort and consider your circumstances first.

How to switch from prepayment to Direct Debit

1. Ask your supplier to change your payment method

First, contact your energy supplier. Ask to move from prepayment to a credit meter or Direct Debit.

Also, ask which checks you need to pass. Your supplier can explain the available options.

2. Check whether you need a credit assessment

Next, ask about a credit check. Some suppliers may require one before moving you to a credit payment method.

If you have energy debt, discuss your repayment options at the same time. Your supplier may offer a repayment plan or other support.

3. Check whether your meter can switch modes

If you have a smart meter, you may not need a physical replacement. Many modern meters can switch between prepayment and credit modes.

Ask your supplier to confirm whether your meter supports the change. They can also explain how they will make the switch.

4. Ask about debt support if your supplier refuses

If your supplier refuses the switch, ask why. Then, ask about affordable repayment options.

Your supplier should discuss ways to manage your energy debt. These can include repayment plans and other support.

Once you clear the debt, ask your supplier to review your payment method again. Ofgem says suppliers must reassess whether prepayment remains suitable. If you want to move away from prepayment and pass any required credit checks, the supplier must agree to the change.

What if your supplier wants to move you to prepayment?

Ofgem has strict rules for involuntary prepayment meter installations. Suppliers must treat customers fairly and consider vulnerability before taking this step.

They must also try other options first. These can include repayment plans and support with bills.

If you are struggling with energy costs, contact your supplier early. This gives you more opportunity to discuss alternatives before debt grows.