Ask Our Expert

How can I get cheaper deals on a prepay meter?

Our energy expert says...

A lot of people who use a prepayment meter end up feeling there is nothing they can do to keep down their bills.

However, you are not a hostage of fortune and there are plenty of steps to take to help you cut your bills.

Competition in the prepayment energy market is low, but customers can still switch between providers to find the cheapest deal.

The energy companies claim many people prefer to be on prepayment meters so they can budget more easily. Landlords often like prepayment meters because it ensures tenants don’t disappear leaving unpaid bills.

The first step to take is to see if you can move onto a standard meter. With one of these your bills should drop as your bill won’t be pushed up by the extra costs the energy firms face from running prepayment meters.

Cheaper social tariffs…

If you cannot, or do not want to, move from the prepayment meter, there are a few more steps beyond switching energy providers.

Depending on your situation, you could move to a cheaper social tariff.

Scottish Power has the Fresh Start tariff. (www.scottishpower.co.uk/Fresh_Start)

To qualify for the tariff you must be over 60 or receiving one of a number of benefits, including council tax benefit, housing benefit or working tax credits, where household incomes are under £15,592.

At Scottish Power, those on prepayment meters receive a rebate by cheque the equivalent to the difference between the standard rate and the cheaper Fresh Start rate.

You might also like to check social tariffs with other suppliers.

It is also worth double checking if you are on an Economy Seven tariff, as storage heaters work by banking heat at night when energy is cheaper.

Energy efficiency…

The next step is to make your home as energy-efficient as possible.

A fifth of a home’s heat is lost through the loft and a third is lost via walls.

It is very much worth checking out the Energy Saving Trust’s grants and discounts database to find out what help is on offer from the energy companies, central government, devolved authorities or local councils.(www.energysavingtrust.org.uk)

If you are receiving benefits, you may be eligible to free insulation work. There are also options for discounted packages, that can pay off in low heating bills in just a year.

Grants are also available that could upgrade heating systems.

If you are renting, you will need permission from the landlord. Landlords paying for improvements can also claim back some of the cost of work on their tax bill.

See our guides to Warm Front and Insulation Grants.

In Scotland, the Energy Assistance Package works to provide help with insulation. (www.energysavingtrust.org.uk/Energy-Assistance-Package)

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If you have an energy query please email ourexpert@energychoices.co.uk