Understanding Prepayment Meters
A prepayment meter is a type of energy meter that requires you to pay for your gas or electricity before you use it. Instead of receiving a bill at the end of the month or quarter, you top up your meter with credit – usually by using a key, card, or mobile app. When the credit runs out, your supply can stop until you top up again. This pay-as-you-go system is designed to help manage energy costs, but it can sometimes make it harder to keep your home heated and powered, especially if you’re struggling financially.
Why do energy suppliers install prepayment meters?
Energy suppliers might suggest or install a prepayment meter if you have fallen behind on your energy bills. They often see it as a way to help you manage debt and avoid further arrears. In some cases, suppliers may apply to the court for a warrant to install a prepayment meter without your consent, particularly if you haven’t paid outstanding bills or haven’t agreed to a repayment plan. However, suppliers must follow strict rules before taking this step, including considering your personal circumstances and any potential hardship.
How do prepayment meters affect your energy payments and usage?
With a prepayment meter, you’ll need to keep a close eye on your credit balance to avoid losing supply. While this can help you budget, it may also mean you’re at risk of running out of energy during evenings or weekends when topping up can be more difficult. Prepayment tariffs are often more expensive than standard credit tariffs, so you could end up paying more for your energy. If you have concerns about the meter’s accuracy or how it’s affecting your payments, you can find more guidance on issues with your energy meter.
What are your rights regarding prepayment meters?
Under UK law and Ofgem regulations, energy suppliers must treat you fairly if they want to install a prepayment meter. They are required to:
Offer you options to repay any debt before considering a prepayment meter.
Assess whether a prepayment meter is safe and practical for your situation (for example, if you have a disability or young children in the home).
Avoid installing a prepayment meter if it would cause you significant hardship or if it is not safe for you to use one.
Give you proper notice and information about the installation, including your rights to challenge or appeal the decision.
If you believe a prepayment meter is unsuitable for your needs or has been installed unfairly, you have the right to raise a complaint with your supplier and, if necessary, escalate the issue further. Understanding your rights is the first step in preventing or challenging the installation of a prepayment meter in your home.
When Can Your Energy Supplier Install a Prepayment Meter?
When Can Your Energy Supplier Install a Prepayment Meter?
Energy suppliers in the UK must follow strict rules before they can install a prepayment meter in your home, especially if you have not agreed to it. These meters are often used as a way for suppliers to recover unpaid energy bills, but there are important protections in place to make sure your rights are respected.
When Suppliers Can Install a Prepayment Meter Without Your Consent
In some cases, your energy supplier may seek to install a prepayment meter without your agreement – this is usually when you have fallen behind on your energy bills and owe a significant amount. However, they cannot simply arrive and fit a meter at will. Suppliers are required to follow a legal process, which may include obtaining a court warrant if you do not give permission.
Recent changes have made these rules even stricter. Suppliers must now consider whether installing a prepayment meter is safe and practical for your situation. For example, if you or someone in your household is vulnerable – such as being elderly, disabled, or having young children – your supplier may be prevented from installing a prepayment meter against your wishes. For more details about these protections and the latest industry rules, see Ofgem.
Situations Where Your Agreement Is Needed
If you are not in debt to your supplier or you are managing your payments, your energy company cannot force you to have a prepayment meter. In these cases, your supplier must have your clear agreement before installing one. Even if you do owe money, you can discuss alternative repayment options with your supplier – such as setting up a payment plan – rather than moving to prepayment.
If you are worried about affording your energy bills, you may be able to get help with your energy bills, which could prevent the need for a prepayment meter altogether.
Legal Limits and Supplier Obligations
Suppliers are legally required to follow the Energy Supply Regulations 2010 and industry codes of practice. Before installing a prepayment meter, your supplier must:
Make reasonable attempts to contact you and discuss your situation.
Carry out an assessment to see if a prepayment meter is safe and practical for your household.
Consider any vulnerabilities in your home, such as health conditions or young children.
Offer you a chance to pay what you owe through a repayment plan or other methods.
If your supplier does not follow these steps or ignores your circumstances, you can challenge their decision and seek support.
What Your Supplier Must Tell You
Your supplier must give you clear, written notice before installing a prepayment meter. This notice should explain:
Why they are installing the meter
The date they plan to fit it
Your rights to object or appeal the decision
Where to get independent advice and support
If you receive a notice and are unsure what to do, contact your supplier as soon as possible to discuss your options. You can also seek advice from organisations that specialise in energy issues.
For more detailed information on your rights and the latest rules about prepayment meters, visit Ofgem.
Understanding when and how your supplier can install a prepayment meter helps you protect your rights and make informed decisions about your energy supply. If you are struggling to pay your bills or worried about forced installation, explore your options for help with your energy bills and seek support as early as possible.
How to Stop or Challenge the Installation of a Prepayment Meter
If your energy supplier contacts you about installing a prepayment meter and you do not want one, it’s important to act quickly and assert your rights. Here’s what you should do to challenge or stop the installation:
1. Contact Your Supplier Immediately
As soon as you receive notice about a prepayment meter, get in touch with your energy supplier. Explain clearly that you do not agree to the installation and provide your reasons. Common grounds for objecting include:
The installation would cause you financial hardship.
You have a vulnerable person in your household (such as young children, elderly, or those with medical conditions).
You have not fallen behind on payments, or you are actively working to repay any debt.
Suppliers are required by Ofgem rules to take your circumstances into account before forcing a prepayment meter on you.
2. Formally Object in Writing
It’s a good idea to put your objection in writing. This creates a record of your complaint and makes your position clear. If the service was arranged online, over the phone, or by mail order without your full agreement, you can use a letter to cancel a service arranged online, over the phone, or by mail order as a template. Make sure to include:
Your account details.
The date you were contacted about the prepayment meter.
The reasons why you are objecting.
Any evidence to support your case (for example, medical notes or proof of financial difficulty).
Send this letter by recorded delivery or email, and keep a copy for your records.
3. Know Your Rights
Energy suppliers must follow strict rules before installing a prepayment meter against your wishes. They should only consider this if you have unpaid bills and have not agreed to a repayment plan. They must not install a prepayment meter if:
It would be unsafe or impractical (for example, due to disability or illness).
You rely on electricity for medical equipment.
You are unable to reach or use the meter.
Suppliers must give you at least seven days’ notice for electricity and seven days for gas before installing a prepayment meter.
4. If a Prepayment Meter Is Installed Without Your Consent
If your supplier installs a prepayment meter without your agreement and without following the correct process, you have the right to complain. Contact your supplier and refer to your earlier objections. Ask them to review the installation and, if necessary, remove the meter or offer an alternative solution.
If your complaint is not resolved, you can escalate it to the Energy Ombudsman.
5. Communicate Clearly and Keep Records
Throughout the process, communicate with your supplier in writing whenever possible. Keep copies of all letters, emails, and notes from phone calls. This documentation will be important if you need to make a formal complaint or seek further help.
6. Cancelling or Disputing Arrangements Made Without Your Consent
If you believe a prepayment meter has been arranged without your full agreement – especially if the arrangement was made online, by phone, or by mail – you have specific rights to cancel. Use a letter to cancel a service arranged online, over the phone, or by mail order to formally dispute the installation and request that your supplier halt any further action.
By following these steps, you can assert your rights and challenge the installation of a prepayment meter. Remember, your supplier must consider your personal circumstances and cannot force a prepayment meter on you without following the correct legal procedures. If you need further help, keep detailed records and consider seeking independent advice.
If a Prepayment Meter Causes You Financial Difficulty
If a Prepayment Meter Causes You Financial Difficulty
Prepayment meters can sometimes make managing your energy bills harder, especially if you’re already struggling financially. With a prepayment meter, you pay for your gas or electricity before you use it – usually by topping up with a card or key. This system can mean higher tariffs, standing charges even when you’re not using energy, and the risk of running out of credit, which could leave you without power. If you’re finding it difficult to keep up with top-ups or the costs are adding extra pressure, it’s important to know your rights and what help is available.
How Prepayment Meters Can Increase Financial Strain
Unlike standard credit meters, prepayment meters often come with higher rates. You might also find it challenging to budget if your income is irregular or if you have unexpected expenses. If you can’t afford to top up, you could be left without heating, lighting, or the ability to cook, which can impact your health and wellbeing. For more advice on what to do if you can’t afford to top up your prepayment meter, there are steps you can take to avoid self-disconnection.
What Support You Can Ask From Your Energy Supplier
Energy suppliers have a duty to support customers in vulnerable situations. Under the Energy Act 2013, new rules mean suppliers must take extra care before installing a prepayment meter, especially if it could cause you significant hardship. If you’re struggling, contact your supplier to explain your situation. You can ask for:
A review of your payment plan or debt repayments
Emergency credit if you’re unable to top up
Additional support if you are disabled, elderly, or have young children at home
Find out more about getting extra support from your energy supplier and what schemes or protections might apply to you.
Requesting a Switch Back to a Credit Meter
If you believe a prepayment meter is making your financial situation worse, you can ask your supplier to switch you back to a standard credit meter. Suppliers are expected to consider your request, particularly if you’re classed as vulnerable or if the prepayment meter is causing you hardship. You may need to clear any outstanding debt before a switch is approved, but in some cases, suppliers can offer repayment plans or alternative solutions. Be clear about your circumstances and provide evidence if you can.
Exploring Grants, Benefits, and Extra Support
There are various sources of financial help available if you’re struggling with your energy bills. You might be eligible for grants and benefits to help you pay your energy bills, such as the Warm Home Discount, Winter Fuel Payment, or specific hardship grants from your supplier. It’s worth checking what you qualify for, as this extra support can make a significant difference.
Remember, your energy supplier must follow strict rules before installing a prepayment meter against your wishes, especially if it would put your health or finances at risk. If you feel that your supplier hasn’t considered your situation properly or you need more advice, don’t hesitate to get in touch with a local advice service or explore the links above for more guidance.
What to Do If You Have Problems with Your Prepayment Meter
What to Do If You Have Problems with Your Prepayment Meter
Prepayment meters can be convenient for managing your energy costs, but they sometimes cause problems that are stressful or difficult to resolve. If you’re having trouble with your prepayment meter, it’s important to know your rights, what steps you can take, and who to contact for support.
Common Problems with Prepayment Meters
Some of the most frequent issues people face with prepayment meters include:
Faulty meters: Your meter might stop working, display incorrect readings, or fail to accept your top-up card or key.
Problems topping up: You may have problems getting to or topping up your prepayment meter, such as difficulties accessing the meter or finding a local shop that can add credit.
Unexpected disconnections: If your meter runs out of credit, you could lose your gas or electricity supply, which can be especially serious for vulnerable households.
Incorrect charges or debt: Sometimes, meters are set up incorrectly, leading to overcharging or unexpected deductions for debt.
If you’re experiencing any of these issues, it’s worth reading more about issues with your energy meter to understand the causes and possible solutions.
Who to Contact for Help
If you have a problem with your prepayment meter, your first step should be to contact your energy supplier. They are responsible for making sure your meter works properly and that you can access and top it up as needed. Explain the problem clearly and keep a record of your communication.
If your supplier doesn’t resolve the issue promptly, you can escalate your complaint by following their complaints process. If you’re still not satisfied, you have the right to take your complaint to the Energy Ombudsman, who can investigate and help resolve disputes.
For further advice, you can also contact Ofgem, the energy regulator. Ofgem has set out new rules for installing involuntary prepayment meters, which give extra protection to customers who are vulnerable or facing financial hardship.
Getting Advice and Resolving Disputes
If you’re struggling to resolve a problem with your prepayment meter, you can seek independent advice. There are organisations that provide free, confidential support on energy issues, including how to challenge your supplier and what to do if you’re at risk of disconnection.
You may also want to read more about problems getting to or topping up your prepayment meter, as this can help you understand your rights and the support available.
If You Rent Your Home
If you’re a tenant, your landlord has certain responsibilities when it comes to your energy supply and the condition of your meter. Generally, landlords are responsible for ensuring that the property has a safe and working supply of gas and electricity, which includes making sure the meter is accessible and in good repair.
If your meter is faulty or hard to access, check what your landlord is responsible for by reading what your landlord has to repair. If your landlord fails to carry out necessary repairs or improvements, you may be able to take further action.
If you’re facing ongoing problems with your prepayment meter, don’t hesitate to reach out for help. Knowing your rights and the steps to take can make a significant difference in resolving issues and ensuring your energy supply is secure.
Additional Resources and Related Topics
If you’re facing issues with a prepayment meter or worried about your energy bills, there are several other resources and topics you may find helpful. Taking control of your energy costs and understanding the support available can make a big difference, especially if you’re experiencing financial difficulty or unexpected changes to your energy supply.
Explore more ways to manage your energy bills:
Get practical advice on reducing your bills: Discover expert strategies to lower your energy costs, including information about grants and government support schemes, by visiting our guide on how to cut your UK energy bills. This resource covers everything from switching suppliers to accessing insulation grants and understanding your tariff options.
Support if you use alternative fuels: If you rely on oil, LPG, coal, or other alternative fuels rather than mains gas or electricity, you may be eligible for specific financial help. Find out more about help with bills if you use alternative fuels, including government payments and schemes designed for households in rural or off-grid locations.
Help if you’re struggling to pay: If you’re finding it hard to keep up with your energy bills, don’t wait until you fall behind. There’s advice and support available for those struggling to pay your energy bills, including options for setting up payment plans, accessing hardship funds, and getting protection from disconnection.
Assistance with heat network bills: Some homes are connected to a heat network rather than having their own boiler or electric heating. If you’re struggling to pay your heat network bills, you can find guidance on what to do, your rights, and who to contact for help.
Reduce your usage with energy management tips: Simple changes in your daily routine and home setup can have a big impact on your energy consumption. Check out our energy management tips for practical ways to make your home more efficient and save money over time.
Legal protections and your rights
Remember, your energy supplier must follow strict rules set by Ofgem and the government before installing a prepayment meter, especially if you haven’t agreed to it or if it could cause you significant hardship. Suppliers are required to assess your circumstances and consider any vulnerabilities, such as age, disability, or financial difficulty, before taking action. If you believe your rights have been breached or you need further support, the resources above can help you understand your options and next steps.
Exploring these related topics can empower you to make informed decisions, access support, and reduce the impact of rising energy costs. If you need further advice, don’t hesitate to reach out using the links provided.
