Energy Guides

Consign your prepayment meter to history

Tuesday 04 January, 2011

By Dominic Welling dominic.welling@consumerchoices.co.uk

Found yourself lumbered with a prepayment meter paying over the odds for your energy? Here’s how to get back on a normal credit meter again.

Prepayment meters are usually installed by suppliers if they are concerned that you will be unable to keep up with your payments for whatever reason. Rather than wait for a regular bill, a prepayment meter means you have to pay for the energy to heat your home, before you use it.

For example you have got into arrears or debt in the past with your energy supplier or if it is simply not convinced you will be able to afford monthly payments then it will probably install a prepayment meter in your home.

In generally prepayment meter are used by lower income families, such as those on benefits, lone parents or those with no bank account.

However they can also be used by other customers as some believe this type of payment system helps with budgeting.

How to get rid of a prepayment meter

It can be very difficult to get a prepayment meter changed once one has been installed. This is usually because the supplier wants to make sure you will be able to keep up with your energy payments if it were to install a normal credit meter, so you will need to prove this first.

If you have just moved into a property and found that you already have a prepayment meter in your home through no fault of your own and you’d like to switch to a standard credit meter, then you should speak to your supplier.

There is normally a charge for the installation of a new meter however the savings you make with a cheaper tariff should soon pay for the installation.

So if you want your prepayment meter removed then your first step should be to contact your energy supplier.

Remember if you can fulfil their criteria then you can save money by changing to a credit meter and paying by direct debit. But you must be sure that this payment method is right for you or else you’ll be back where you started.

Below we look at the terms and conditions for getting your prepayment meter replaced, by each of the “big six” energy suppliers.

Scottish Power

Scottish Power will remove the prepayment meter and change your payment method if:

• you have been on the system with the supplier for a year
• you have paid any money you owe in full
• you agree to an alternative suitable payment method, usually direct debit.

However, it may still ask you for a cash deposit before it lets you change the way you pay. The amount will be refunded in full - plus interest and minus tax - after you have made all payments on time over a year.

You may also be required to pay the costs of the job to remove the prepayment meter.

E.ON

E.ON says that if you’ve lived at the property for longer than three months, and the meter was not fitted to recover a debt, it will exchange your prepayment meter if you agree to pay by direct debit. It may however require that you to contribute to the cost of changing the meter.

If you’ve moved into the property recently EON will exchange your prepayment meter if you satisfy its credit vetting procedures. There may be a charge for this of around £50.

The supplier will not remove the meter if it was fitted to recover a debt, unless it can agree an acceptable alternative payment method.

Npower

Npower will remove the prepayment meter provided:

• you have been supplied by Npower for more than one year
• if the meter was installed to recover a debt, it has been repaid in full.

If the meter has been installed for less than a year, Npower may charge you to remove it.

Before agreeing to a meter change Npower may check your credit history, and may require you to join one of its payment plans designed to help you with budgeting.

If you have moved into a property with a prepayment meter already installed and want to change to a credit meter, Npower will look at your payment history before making a decision on whether you can do this.

Scottish and Southern Energy (SSE)

If you’ve moved into a new home with a pay-as-you-go meter, SSE will expect you to keep that meter.

However if you wanted to remove it and were with SSE at your previous home with a credit meter, the supplier will consider your payment history before making a decision on whether to switch you.

If they do switch your meter it will charge you £52.

British Gas

British Gas will remove your prepayment and replace it with a credit meter free of charge if:

• you have cleared any outstanding debts

or

• you are a new customer moving into a property where a prepayment meter is fitted

In addition, you may be required to pay a security deposit subject to being credit vetted.

EDF

EDF would normally expect you to keep your prepayment meter for at least 12 months and to finish paying off any debts.

However, if you’ve paid your debt and a prepayment meter is no longer right for you, it will discuss other payment options with you.

It will not usually charge to take away the prepayment meter.