Choosing the right type of energy meter for your home can be a tricky decision. With so many options available, it’s important to understand the pros and cons of each type of meter to make an informed choice. Two of the most common types of energy meters are the standard credit meter and the prepayment meter. In this article, we’ll explore the differences between these meters, the advantages and disadvantages of each, and how to switch from one type of meter to another.
What is a Prepayment Meter?
In simple terms, a prepayment meter, also known as a prepaid meter, allows you to pay for your energy before you use it.
This means that you’ll need to top-up your meter with credit using a key or card, just like you would with a mobile phone, and as you use gas or electricity, the cost is deducted from your credit balance. When your credit runs out, your energy supply will be cut off until you top-up your meter again.
What is a Standard Credit Meter?
A standard credit meter works differently from a prepayment meter.
With a credit meter, you pay for your energy after you use it. This means that you’ll receive a bill from your energy supplier based on how much gas or electricity you’ve used over a set period of time, so you can then pay the bill by direct debit or another payment method.
Advantages and Disadvantages of Prepayment Meters
One of the main advantages of a prepayment meter is that it allows you to budget your energy usage more easily. You can top up your meter with credit as and when you can afford it, and you’ll only use the energy that you’ve paid for. This can be particularly helpful if you’re on a tight budget or if you want to monitor your energy usage more closely.
However, prepayment meters tend to be more expensive than standard credit meters, and prepayment tariffs tend to be less competitive than standard tariffs.
Another advantage is that it helps you manage your energy usage more effectively. This is because you can only use the amount of energy that you have paid for, which can help you avoid overspending on your energy bills. Additionally, prepayment meters do not require a credit check, which means that they are more accessible to individuals who may not have a good credit rating.
In addition to the cost of the gas and electricity you consume, a standing charge is levied for being connected to the energy supply, regardless of whether you use any energy or not. This charge is applicable even if you have a regular meter, but with prepayment, you need to have sufficient credit to cover it.
If you do not have any credit on your meter, you are still liable to pay the standing charge. The unpaid charges are collected from you when you next top up your meter. The standing charge you pay depends on various factors, including your location, supplier, and tariff.
In the event that you possess a prepayment meter, purchasing credit from a top-up point such as a nearby shop or Post Office is necessary. Your energy supplier provides you with a top-up card or key to carry out the transaction.
In circumstances where accessing a top-up point is inconvenient, particularly when you have to travel a significant distance, acquiring a smart meter with a prepayment feature could be a more viable option.
With a smart meter in prepayment mode, you have the flexibility to:
- Top up via your top-up card or key
- Top up online or using a mobile application
Despite the convenience of online top-ups, it is important to keep your card or key on hand as a backup in case the app encounters any issues.
Pros and Cons of Standard Credit Meters
One of the main advantages of standard credit meters is that they offer more flexibility in terms of payment options and tariff options. You can choose to pay your bills by direct debit, bank transfer or cheque, and you can choose from a range of tariff options that can help you save money on your energy bills.
Another advantage of standard credit meters is that they offer more accurate billing. Your energy supplier will read your meter regularly to ensure that you are only charged for the energy you have used. This means you are less likely to be overcharged or undercharged for your energy usage.
However, standard credit meters also have some disadvantages.
One of the main disadvantages is that they can lead to bill shock. If you are not careful with your energy usage, you may receive a large bill at the end of the month or quarter, which can be difficult to pay off. This can be particularly challenging if you have a variable income or if you are on a low income.
Can I change from one meter to another?
In most cases, it is possible to change your gas and electricity meter, but the process will depend on your specific situation and location.
If you want to change your meter, you should contact your energy supplier and discuss your options with them. They will be able to advise you on whether a new meter is necessary, and if so, what type of meter would be most suitable for your needs.
If you are a homeowner and the existing meter is outdated or malfunctioning, you may be able to request a replacement from your energy supplier. In some cases, your supplier may install a new meter free of charge, while in other cases, you may need to pay for the new meter and installation.
If you are a tenant, you will need to discuss the possibility of changing the meter with your landlord, as they will need to give permission for any work to be carried out. In some cases, your landlord may be responsible for arranging and paying for any necessary upgrades.
In any case, it is important to consult with your energy supplier and follow their guidelines to ensure that the installation of your new meter is done safely and correctly.