Paying for your energy
How can you pay?
Energy suppliers provide several different payment methods for you to pay your bills, these can depend
on your tariff and circumstances.
It is important to find a payment method that suits your needs. It is also worth remembering that not all
payment methods will be available with all tariffs so it is important to check this before switching. Below
are some advantages and disadvantages of various payment methods to help you decide the most
appropriate one for you.
Pros
Cons
Quarterly bill – Paying for the energy you have used once every 3 months
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Don’t need to worry about credit/fuel running
out.
Only have to think about and pay for when bill
arrives.
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Difficult to budget because of big differences
between summer and winter bills.
Estimated bills can lead to large under or
overpayments.
Direct debit – Paying a set amount towards your bill every month
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Wide range of tariffs available.
Suppliers often offer discounts if pay by Direct
Debit.
Payments stay fairly constant throughout the
year.

If you use more energy than predicted, you
may need to make up the deficit at the end of
the year or your Direct Debit will increase to
cover payments.
Prepayment meter – Paying as you go for your energy before you use it

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Can recover debt and helps people not to get
into further debt.
No bills.
Can compare how much energy you use on a
daily/ weekly basis.
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Fewer discounts and tariff choices so can be a
more expensive option.
Can be impractical to top up if struggle to
reach shops.
Payments vary greatly between winter and
summer.
Understanding your meter
Economy 7 meters
This meter gives you two rates for your electricity. A cheap night rate and a more expensive day rate.
This kind of meter will only benefit you most of your electricity usage is at night, for example if you have
storage heaters or an immersion heater to heat your water up at night. You can tell if you have economy
7 because there will be two readings on your meter and bill, normally called low or night for your cheaper
electricity and day for your more expensive rate.
Heatwise meters
This meter uses day and night economy 7 rates but also has 2 further cheaper rate times during the
afternoon and evening. There is also a boost setting, but this can be expensive. This meter can benefit
you if you have storage heaters as it can give you extra heat during the evening and afternoon on a
cheaper rate. However, these meters are not very common and can be complicated to compare, as such
few suppliers support them and you may struggle to switch.
Smart meters
Smart meters are starting to be installed across the country, with the majority of people set to get them
before 2020. Smart meters are able to communicate directly with your supplier so you will rarely need to
read your meter and helps eliminate estimated bills.
They can communicate directly with your energy supplier meaning that no one will need to come and
read your meter in future. Smart meters can also tell households how much energy they are using at a
particular time, helping people to understand where they could save money on their energy bills.
Prepayment Meters
Prepayment meters are an attractive option for many people as you pay for your energy before you use
it, and can also manage debts
These meters are run on prepaid for credit. Once this has run out the meter needs to be topped up with
its key or card via a PayPoint or Payzone. Your meter will most likely have some emergency credit in
case you run out when you are unable to top up, however emergency credit is limited and will have to be
paid back when you next top up.
Be aware that Prepayment meters can be one of the most expensive ways to pay for your energy
as there are fewer tariffs and discounts available. Below are several things to think about if you
are considering a prepayment meter.
Advantages
 Helps customers to repay and not get into further debt .
 No big bills, pay for your energy before you use it.
Disadvantages
 Fewer discounts and tariff choices available
 Impractical to top up if you struggle to reach a top up point or don’t have the internet
 Payments vary a lot between winter and summer.
 Still pay for standing charge and debt repayments even if not using any energy e.g. if you go on
holiday or are in hospital, so can still accrue debts.
 Energy could run out at impractical times if not monitored e.g. at night
If you already have a prepayment meter...
 Check with your supplier that you’re tariff is the most appropriate for your needs and heating
system.
 Check if you are eligible to pay by credit meter, some companies will fit these for free if you pass
their credit checks and will allow you a wider choice of tariffs and discounts that would not be
available with prepayment meters.
 If you are out of your property for a number of days, ensure you top up your meter before you go.
This will avoid building up a debt for when you return as your meter continues to take a standing
charge from your credit even if you have no appliances turned on.
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Try not to rely on emergency credit. If you do use your emergency credit, you will still be charged
your usual standing charge. Normally this is not taken off when you are using your emergency
credit but will be taken off when you top up resulting in you needing to pay more to get back into
credit. This is often why people believe emergency credit costs more.
Keep your meter in credit this minimises the likelihood of running out of credit in the middle of the
night or during public holidays when it maybe difficult to top up your credit, particularly if you live
in more rural areas.
Moving to a home with a prepayment meter
Call the energy supplier of your new home to advise them you have moved in, to get the meter
read/reset and for them to send you a new key if needed. This should help avoid you having to pay off
the previous tenant’s debt.
Also check with your supplier that you are on the most appropriate tariff for your needs and heating
system in addition to checking that a prepayment meter would be most suitable for you.
Switching with a prepayment meter
You are still able to switch to another supplier with a prepayment meter, providing you are responsible
for paying the bill. If you wish to switch from a prepayment meter to a credit meter some companies will
do this free of charge , however, you may need to pass a credit check in order to do this. Also under
certain circumstances your supplier may not be able to change your meter, for example, if you have an
outstanding debt.
Universal Credit
Universal credit is being introduced across the country. Monthly universal credit payments may make it
easier to budget and also pay monthly for your energy, helping you to take advantage of cheaper tariffs
and payment methods.This provides an opportunity to think about switching away from a prepayment
meter.
Struggling to pay for your energy?
If you are struggling to top up your meter call your supplier as soon as you are able. They may be able to
reduce your debt repayments on your meter if you have any (however this will mean it will take longer to
pay them back) or they maybe able to advise you of cheaper tariffs or grants to put towards your energy
bills.