Changing from prepayment meter to Direct Debit

Switching from a prepayment meter to Direct Debit usually means cheaper unit rates, no more topping up, and access to a far wider choice of tariffs. The process starts with a call to your current supplier, may involve a credit check, and is possible even if you have some energy debt. Here is the step-by-step path, including how to handle debt, credit checks, and the meter exchange itself.

If you are looking to simplify your energy payments and gain more control over your usage after moving to a credit meter, Fuse Energy offers competitive tariffs and a modern, digital-first experience. You can switch to Fuse once you have a standard credit meter installed. Click here to get started.

Understanding prepayment meters and why change

What is a prepayment meter?

A prepayment meter, also known as a pay-as-you-go meter, requires you to pay for your energy before you use it. You typically top up a key or card at a local shop or Post Office, or sometimes online or via an app, and then insert it into your meter to add credit. These meters are common in rented properties or for customers who have previously struggled with energy debt.

The benefits of switching to Direct Debit

Moving to Direct Debit often brings several advantages. Prepayment meters are frequently associated with higher unit rates and standing charges compared to Direct Debit tariffs, meaning you could pay more for the same amount of energy. Direct Debit offers more flexibility, allowing you to spread your energy costs evenly throughout the year and avoid the hassle of topping up. It can also provide a clearer overview of your energy usage and spending, making budgeting simpler.

Credit meter vs prepayment meter: key differences

The fundamental difference lies in how you pay for your energy. With a prepayment meter, you pay upfront, and your supply stops if you run out of credit. A credit meter, on the other hand, allows you to use energy first and then pay for it later, usually monthly, via Direct Debit. Credit meters offer access to a wider range of tariffs, including potentially cheaper fixed-rate deals, and often come with smart meter functionality that provides real-time usage data.

Your step-by-step guide to switching

Checking your eligibility and credit score

Before you can switch to a credit meter and Direct Debit, energy suppliers typically perform a credit check. This helps them assess your ability to manage future payments. It is a good idea to check your credit score beforehand, as a stronger credit history can improve your chances of approval. If your score is not as high as you would like, there are steps you can take to improve it, such as ensuring you are on the electoral roll and paying other bills on time.

Contacting your current energy supplier

Your first port of call should be your current energy supplier. They are best placed to advise you on their specific criteria for switching from a prepayment meter to a credit meter and setting up a Direct Debit. Explain your desire to switch and ask about their process, including any eligibility requirements or fees.

Dealing with energy debt on your prepayment meter

Having energy debt on a prepayment meter does not necessarily prevent you from switching to a credit meter. Many suppliers will allow you to switch, often by agreeing to a debt repayment plan that is manageable for you. This plan might involve transferring a small portion of your debt to your new credit meter, which you would then pay back in instalments alongside your regular Direct Debit payments. Open communication with your supplier is key here.

Arranging your meter exchange

If you meet your supplier's criteria, they will arrange for a credit meter to be installed. This often involves upgrading to a smart meter, which can provide more accurate readings and help you monitor your energy use. It is worth noting that the Radio Teleswitch Service (RTS) for older, legacy meters is being phased out area by area, a process that began on 30 June 2025. If you have an RTS meter, your current supplier will need to replace it with a smart meter, usually at no cost to you, before you can switch to a Direct Debit tariff.

Common questions and concerns

What if I have a low credit score?

A low credit score can make switching to a Direct Debit tariff more challenging, but it is not always a complete barrier. Some suppliers may still offer you a credit meter, possibly with a higher security deposit or a more restrictive tariff. Alternatively, you might need to build up your credit score over time before reapplying. Citizens Advice can offer guidance if you are struggling to switch due to your credit history.

Can I switch if I am renting?

If you rent your home, you generally have the right to choose your energy supplier and payment method. However, it is always a good idea to inform your landlord or letting agent before making any changes to your meter, especially if it involves a physical exchange. While you do not usually need their permission to switch supplier or payment method, they might have preferences regarding meter types or access for installation.

How long does the switching process take?

The entire process, from initial contact with your supplier to the installation of a new meter and setting up Direct Debit, can vary. Once you have agreed to switch and passed any necessary checks, the meter exchange itself usually takes a few weeks to arrange. After the new meter is installed, setting up your Direct Debit is typically a quick process.

After the switch: what to expect

Understanding your new Direct Debit payments

Once you are on Direct Debit, your energy supplier will estimate your annual energy usage and divide it into equal monthly payments. They will periodically review your usage and adjust your Direct Debit amount to ensure you are paying the right amount. You will receive regular statements detailing your usage and payments, giving you a clear picture of your energy account.

Monitoring your energy usage

With a credit meter, especially a smart meter, you gain better insight into your energy consumption. Smart meters send automatic readings to your supplier, eliminating estimated bills and allowing you to track your usage in near real-time. This can empower you to identify areas where you can reduce consumption and manage your energy more effectively. The average UK home uses around 2,700 kWh of electricity per year, so understanding your own usage against this benchmark can be a useful starting point for monitoring.

Choosing your next energy supplier

What to look for in a new provider

After successfully transitioning to a credit meter and Direct Debit, you will have access to a wider market of energy tariffs. When choosing a new provider, consider factors like competitive unit rates and standing charges, customer service reputation, and the availability of smart meter features. Look for suppliers that offer transparent billing, easy-to-understand tariffs, and tools to help you manage your energy.

Making the most of your newfound flexibility

Moving off a prepayment meter is a significant step towards greater energy freedom and control. With a standard credit meter and Direct Debit, you are now in a position to choose a supplier that aligns with your values and offers a modern, digitally-enabled energy experience. While Fuse Energy does not currently support switching directly from a prepayment meter, once you have a standard credit meter, we can offer competitive tariffs and a superior experience, aligning with our goal of delivering the cheapest, cleanest energy possible.

Frequently asked questions

Is Direct Debit always cheaper?

Direct Debit tariffs are generally cheaper than prepayment tariffs due to lower unit rates and standing charges. Suppliers often offer more competitive deals to Direct Debit customers because it provides them with more predictable income and reduces administrative costs. However, specific savings depend on your individual usage, the tariffs available, and the supplier. Always compare tariffs to find the best deal for your needs.

What if my supplier refuses to switch my meter?

If your current supplier refuses to switch your meter from prepayment to credit, and you believe you meet their eligibility criteria, you have options. First, ask for a clear explanation of their decision. If you are not satisfied, you can complain to your supplier. If the issue remains unresolved after eight weeks, or you receive a 'deadlock letter', you can escalate your complaint to the Energy Ombudsman. Citizens Advice can also provide free, impartial advice and support throughout this process.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you are paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. If you do not have a smart meter, Fuse Energy can upgrade your non-smart meter free of charge. This can make it easier to track spending and make informed decisions about your energy use. Our 24/7 human support team is always on hand with fast response times of under 5 minutes whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.