Quick links:
- ‼️ Important: Are you a One Utility Bill customer with a prepayment meter issue?
- How do Pay-As-You-Go energy meters work?
- Pros and cons: Is Pay-As-You-Go gas and electric cheaper?
- Moving home with a prepayment meter
- Switching from prepayment to a credit meter with One Utility Bill
- Comparing suppliers and completing your home setup
Pay As You Go (PAYG) gas and electricity is when you pay for your energy before you use it. It's also known as prepayment energy. Instead of receiving a monthly bill, you'll top up your meter, and your energy usage will be paid for with that balance.
There are two main types of prepayment meters:
- Traditional prepayment meters: Use a key or card that you top up at a shop or PayPoint location.
- Smart prepayment meters: You can add credit online, via an app, or by phone.
With both types of meter, standing charges still apply. This means a daily charge is deducted from your balance even if you don't use any gas or electricity.
With a modern prepayment meter, you can usually access a small amount of emergency credit, which gives you a temporary buffer if your balance runs out, as well as friendly credit hours that keep your supply connected overnight, at weekends, or on bank holidays.
Keep reading to learn whether a prepayment meter is right for you.
🚨Important: Are you a One Utility Bill customer with a prepayment meter issue?
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If you're waiting on a prepayment meter swap, or have a meter problem, such as a blank screen, a prepayment top-up issue, check out our Meter Issues FAQ or get in touch.
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If you smell gas, have a visibly damaged meter, or believe there's an immediate safety issue, call 0800 111 999 immediately! This is the Gas Emergency Services helpline, which is open 24/7.
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For non-emergency issues, like top-up problems or questions about meter swaps, you'll usually just need to follow the guidance in our FAQs or get in touch so we can help out.
How do Pay-As-You-Go energy meters work? 👀
With a Pay As You Go meter, you'll need to add credit before you can use gas or electricity. How you top up depends on the type of meter you have.
If you have a traditional prepayment meter, you'll usually need to take your card or key to a PayPoint or Post Office to add credit. For smart prepayment meters, you can often top up online, via an app, or by phone.
If you're moving to One Utility Bill and your new home has a prepayment meter, you’ll get an email from the team with next steps based on your meter type. You'll also get details on how to use a top-up card or key so you can keep your energy supply topped up while we arrange to swap your meter.
Remember: Standing charges apply every day, even if you don't use any energy. If you don't top up your meter regularly, these charges can still build up while you're away from home.
Emergency credit
Most prepayment meters include emergency credit, which acts as a temporary buffer if your balance runs out. This is typically around £10, though the amount varies by supplier and has to be repaid the next time you top up.
Friendly credit hours
Many suppliers also offer friendly credit hours. This means your energy supply won't usually disconnect overnight, at weekends, or on bank holidays, even if you've used up your emergency credit. Exact times and conditions can vary between suppliers.
Learn more about emergency credit and friendly credit hours on the Citizens Advice website.
Pros and cons: Is Pay-As-You-Go gas and electric cheaper? 💰
Pay As You Go isn't usually the cheapest way to pay for gas and electricity.
However, recent changes to the energy price cap have helped reduce the difference between prepayment and standard credit tariffs. This was true at the time of writing, but energy prices and regulations can change over time.
Here's a quick look at the pros and cons of a prepayment meter:
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Pros |
Cons |
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Easier to budget, as you only use credit you've already paid for |
You need to remember to top up regularly |
|
No surprise bills at the end of the month |
Your supply could stop if you run out of credit |
|
Can help repay existing energy debt in smaller amounts over time |
Fewer tariff options compared to standard credit meters |
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Smart PAYG meters allow online and app-based top-ups |
Traditional meters require trips to a PayPoint or Post Office |
|
Low-credit alerts can help you avoid running out of energy |
You may not always have access to the cheapest deals on the market |
For many households, the main benefit of Pay As You Go energy is control. You pay upfront, so it can be easier to keep track of your spending and avoid building up debt.
If you have a smart prepayment meter, many of the traditional drawbacks are reduced. Features such as remote top-ups and low-credit alerts make managing your energy much more convenient.
The Energy Price Cap sets the maximum rates suppliers can charge for energy and standing charges.
From July 2026, PAYG daily standing charges will be in line with those on Direct Debit tariffs under Ofgem's ‘levelisation’ policy, however unit prices for energy will still vary.
Ultimately, you pay for the energy you use, so if you want to cut down your bill, read our guide to saving energy for tips.
Moving home with a prepayment meter 🏡
If your new home has a prepayment meter:
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and you have a One Utility Bill package, you'll hear from us with details of your switch to a credit meter and how to get refunds for top ups.
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and you don't have a One Utility Bill package, you need to contact the current supplier as soon as possible, so you're not charged for any debt left behind by a previous tenant.
Moving to One Utility Bill? The earlier you get started, the less you'll need to do once you've collected the keys. In most cases, setting up your bills package at least two weeks before you move will make the process much smoother.
For a complete overview of what you need to do before moving day, take a look at our moving home checklist.
You can also read our guide on how to set up utilities when moving house to learn everything you’ll need to know about the process.
Switching from prepayment to a credit meter with One Utility Bill 👉
If your new home has a prepayment meter, the One Utility Bill team will get in touch to start the process of switching you to a credit meter.
Here’s how it works:
Please check out the prepayment meter FAQs for full details!
- Use the new card for your meter to top up and keep the lights on until the meter exchange place to avoid any disconnection.
- Upload your receipt or confirmation emails for every top up to your One Utility Bill dashboard to get a refund within 3-5 working days.
- Traditional meters will need an engineer appointment to make the switch, which we'll organise for you.
- A smart meter can be swapped remotely in many cases. The exact timescale can vary depending on engineer availability and the local network operator
Comparing suppliers and completing your home setup 🤔
As of June 2026, several energy suppliers offer prepayment meters, including Octopus Energy, E.ON Next, and Utilita. However, supplier tariffs and features change regularly, so it's always worth checking the latest information before making a decision.
When comparing suppliers, look out for smart prepayment features that let you top up online or via an app.
Getting ready to move home? Remember that energy is only one part of the setup process.
You'll also need to make sure your broadband is ready to go, which can also take some time to set up. Read our guide to setting up broadband to make sure everything is ready and connected before move-in day. The earlier you start arranging your utilities, the smoother your move will be.