Prepayment Energy Meters Explained: Topping Up, Emergency Credit, Switching to Credit and Getting Help

A prepayment meter means you pay for gas or electricity before you use it, by topping up a key, a card or a smart meter's balance. Under Ofgem's price cap, prepayment prices are no higher than paying by direct debit. You still pay a daily standing charge, which is taken from your credit even when you use nothing. Most suppliers offer emergency credit when you run low.

How it works

• Topping up. A key or card is topped up at a shop or online; a smart prepayment meter is topped up in the supplier's app.
• Standing charges. Taken daily from your credit. After a period with no top-up, they may build up as a debt taken from the next top-up.
• Emergency credit. A small amount you can use when your credit runs out, repaid from the next top-up.
• Friendly credit. Many meters will not cut off supply overnight, at weekends or on bank holidays, even if credit runs out.

Moving into a home with a prepayment meter

Ask the supplier for a new key or card in your name as soon as you move in. An old one may be carrying the previous occupant's debt, which you should not be paying off. Give the supplier your opening meter readings.

Changing to a credit meter

You can ask your supplier to change a prepayment meter to a credit meter. It may run a credit check or ask for a deposit first. In a rented home, check your tenancy agreement, and tell your landlord.

If you are struggling to pay

• Contact your supplier. It must work with you on an affordable way to pay, and may offer extra credit.
• Ask to join its Priority Services Register if you are of pension age, disabled, have a long-term health condition, have young children, or need extra help for another reason. It is free.
• Ask about the Warm Home Discount and any hardship fund the supplier runs.
• Free independent help is available from Citizens Advice.

How Wisemium helps

Add your energy supplier and tariff to Wisemium and they are kept on record with the rest of the household's bills. Wisemium does not list energy tariffs itself; when there is something worth acting on it takes you through its energy partner journey.