Last updated: April 2026
Everything you need to know about prepayment energy meters, including your rights, how to switch to credit, and the prepayment price cap.
A prepayment meter requires you to pay for energy before you use it, similar to a pay-as-you-go mobile phone. You top up credit using a key, card, or app (for smart prepayment meters), and the meter deducts the cost as you use gas or electricity. If your credit runs out, your supply stops until you top up. Around 4 million UK households have prepayment meters.
Following the energy crisis, Ofgem strengthened protections for prepayment customers. Suppliers can no longer force-fit prepayment meters for debt recovery without a court warrant. If you are vulnerable (elderly, disabled, have young children, or have mental health conditions), your supplier must not switch you to prepayment involuntarily. You have the right to switch from prepayment to credit if you have no outstanding debt.
Prepayment meters have their own Ofgem price cap, which has been aligned with the credit meter cap since July 2024. This means prepayment customers pay the same maximum rate as direct debit customers. Previously, prepayment customers often paid more, but Ofgem corrected this disparity.
If you want to switch from a prepayment meter to a credit meter, contact your supplier. If you have a smart meter, the switch can often be done remotely by changing the meter mode. If you have a traditional prepayment meter, a meter exchange visit may be needed (which should be free). You may need to pass a credit check, and any outstanding debt must be cleared or arranged first.
Smart prepayment meters allow you to top up online, via an app, or by phone — no more trips to the shop. They show your balance in real time on the in-home display. If you run out of credit, many smart prepayment meters offer a small emergency credit (typically £5-£10) to keep you connected. Friendly credit periods prevent disconnection during evenings, weekends, and bank holidays.
Yes, you can switch supplier with a prepayment meter. Most suppliers accept prepayment customers. If you have a smart prepayment meter, the switch is straightforward. With a traditional prepayment meter, your new supplier will need to ensure compatibility with their top-up systems.
Since July 2024, the Ofgem price cap for prepayment meters has been aligned with credit meters, so the maximum rate is the same. However, prepayment customers cannot access some of the cheapest fixed deals that are only available to direct debit customers. Overall costs can be slightly higher due to fewer tariff choices.
If you run out of credit on a prepayment meter, your supply will stop. Smart prepayment meters typically offer emergency credit of £5-£10 and will not disconnect during friendly credit periods (evenings and weekends). If you are struggling to afford top-ups, contact your supplier — they have an obligation to help and can offer support like debt repayment plans or hardship funds.
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Information sourced from Ofgem, Citizens Advice, and DESNZ. Last updated April 2026.
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