Energy meter payments explained

Managing household energy bills in the UK can often feel complicated, with various meter types and payment methods to understand. Knowing how your energy meter works and the payment options available is crucial for controlling your costs and ensuring a consistent energy supply.

Understanding your energy meter and payment options is key to managing your household bills. Fuse Energy offers a straightforward, digital-first experience for credit meter customers, making it easier to track your usage and payments. Click here to see how simple energy management can be.

Understanding your energy meter

Your energy meter is the device that measures how much gas and electricity your home uses. In the UK, there are two primary types: credit meters and prepayment meters.

Credit meters explained

Credit meters, also known as standard or Post-payment meters, allow you to use energy first and pay for it afterwards. You typically receive a bill monthly or quarterly, based on your consumption. This payment method often offers more flexibility, such as setting up a Direct Debit, and can provide access to a wider range of energy tariffs, which may be more competitive.

Prepayment meters explained

Prepayment meters, or pay-as-you-go meters, require you to pay for your energy before you use it. You top up your meter with credit, and your supply continues until that credit runs out. While they can help with budgeting by preventing debt, prepayment meters can sometimes have higher unit rates and carry the risk of self-disconnection if you run out of credit. Ofgem, the energy regulator, sets rules for suppliers regarding prepayment meters, including provisions for emergency credit and friendly hours to protect consumers.

Smart meters and their benefits

Smart meters are the modern generation of energy meters. They can operate as either credit or prepayment meters and offer several advantages. Smart meters automatically send your meter readings to your energy supplier, removing the need for manual readings and ensuring more accurate bills. They also come with an in-home display (IHD) that shows your energy usage in near real-time, helping you understand and manage your consumption more effectively. This transparency can empower you to make informed decisions about your energy use.

How to pay for your energy

The way you pay for your energy depends on the type of meter you have.

Direct Debit and online payments

For credit meter customers, Direct Debit is a common and often preferred payment method. It involves setting up an automatic payment from your bank account to your energy supplier, usually on a fixed date each month. Many suppliers also offer online payment portals or mobile apps where you can make one-off payments, view your bills, and manage your account. These methods provide convenience and can often unlock access to more competitive tariffs.

Topping up your prepayment meter

If you have a prepayment meter, you will need to actively top it up to maintain your energy supply. Common methods include:

• Online or via app: Many suppliers now allow you to top up your smart prepayment meter through their website or a dedicated mobile app. You will typically need your meter number or a top-up card/key number.
• In-store: You can top up at PayPoint or Post Office locations using a top-up card or key provided by your supplier. These locations are widespread across the UK.
• Phone: Some suppliers offer a phone service for topping up, where you can pay using a debit or credit card.

Emergency credit and friendly hours

Prepayment meters come with built-in safeguards. Emergency credit is a small amount of credit your supplier provides that you can activate if your balance runs low, giving you time to top up before your supply cuts off. You will need to repay this credit with your next top-up. Friendly hours (or non-disconnection hours) are specific periods, typically overnight, weekends, and public holidays, during which your supply will not cut off even if your credit runs out. This ensures you are not left without energy at inconvenient times.

Managing your prepayment meter

Effective management of a prepayment meter can help avoid unexpected disconnections.

Finding top-up locations and methods

To find your nearest top-up point, check your energy supplier's website or app, which usually has a locator tool. PayPoint and Post Office websites also offer store locators. Keep your top-up card or key safe, as you will need it for in-store top-ups. For online or app top-ups, ensure you have your account details handy.

What to do if you run out of credit

If your prepayment meter runs out of credit, your energy supply will stop.

1. Activate emergency credit: If available, activate your emergency credit immediately.
2. Top up: Get to a top-up point or use an online method as soon as possible.
3. Contact your supplier: If you are struggling to top up or are in a vulnerable situation, contact your energy supplier. They have a duty to help and may offer additional support credit or advice.

Legacy meters: the RTS phase-out

Some older electricity meters, particularly those with multi-rate tariffs like Economy 7 or Economy 10, rely on the Radio Teleswitch Service (RTS) to switch between peak and off-peak rates. This service is being phased out, with the signal switched off from 30 June 2025. If you have an RTS meter, your energy supplier will need to replace it with a smart meter or an alternative solution. It is crucial to arrange this replacement with your current supplier to avoid disruption to your heating and hot water supply.

Switching from a prepayment to a credit meter

Moving from a prepayment meter to a credit meter can offer greater flexibility and potentially lower costs.

Eligibility and process for switching

To switch from a prepayment meter to a credit meter, you will typically need to:

1. Clear any debt: You usually need to be debt-free with your current supplier. If you have debt, discuss a repayment plan with them.
2. Pass a credit check: Your supplier may conduct a credit check to ensure you can manage credit payments.
3. Contact your supplier: Request the switch. Your current supplier is responsible for assessing your eligibility and arranging the meter exchange. They cannot unreasonably refuse your request, especially if your circumstances make a prepayment meter unsuitable.

Benefits of a credit meter

Switching to a credit meter can bring several advantages:

• More payment flexibility: Pay by Direct Debit, online, or by bank transfer.
• Wider tariff choice: Access to a broader range of tariffs, including potentially cheaper fixed-rate deals.
• No need to top up: Eliminates the risk of running out of credit and self-disconnection.
• Easier budgeting: Predictable monthly payments can simplify financial planning.

Choosing a new energy supplier

Once you are on a credit meter, you have more options for choosing an energy supplier that suits your needs. Modern, app-managed energy suppliers offer transparency and control over your energy usage and payments. For instance, Fuse Energy provides a digital-first experience for credit meter customers, allowing you to manage your account, view usage, and understand your bills through a user-friendly app. Fuse Energy supports smart prepayment meters for switching, converting them to credit mode upon switch-in. However, legacy (non-smart) prepayment meters are not supported for switching.

Frequently asked questions about meter payments

What if my smart meter is not working?

If your smart meter or its in-home display is not working correctly (e.g., not sending readings, blank screen), first try basic troubleshooting steps like restarting the in-home display. If the problem persists, contact your energy supplier. They are responsible for maintaining your meter and can diagnose issues or arrange for a repair or replacement.

Can I get help with my energy bills?

Yes, if you are struggling to pay your energy bills or top up your prepayment meter, there is support available.

• Contact your supplier: They can offer advice, payment plans, or access to hardship funds.
• Citizens Advice: Offers free, independent advice on energy problems, grants, and benefits1.
• Government schemes: Look into schemes like the Warm Home Discount, which provides a one-off £150 discount on your electricity bill for eligible households for winter 2026 to 2027. Payments are typically applied between November 2026 and 31 March 2027.
• Fuel vouchers: Your local council or Citizens Advice may be able to help you get fuel vouchers if you cannot afford to top up your prepayment meter.