Credit meters and smart billing

A credit meter bills you for the energy you have already used, operating on a 'pay-after-use' model. This differs significantly from a prepayment meter, where you top up credit before consuming electricity or gas. While traditional credit meters can sometimes lead to estimated bills, modern smart credit meters offer greater accuracy and control over your energy usage.

Managing your credit meter and understanding your energy usage is simpler with Fuse Energy. We offer clear monthly billing and real-time insights to help you stay in control. Click here to switch to Fuse Energy today.

Understanding credit meters

What is a credit meter?

A credit meter is a device in your home that records the amount of electricity and/or gas you consume, allowing your supplier to bill you after you have used the energy. This "pay-after-use" model means you receive a bill, typically on a monthly basis, for your actual consumption. It is the standard meter type for most households, contrasting with prepayment meters that require you to pay in advance.

How credit meters measure energy

Credit meters measure electricity in kilowatt-hours (kWh) and gas in cubic metres (m³) or cubic feet (ft³). For gas, the volume reading is then converted into kWh for billing purposes. Traditional credit meters have a display that shows your total consumption, which you might need to read manually and submit to your supplier.

The 'pay-after-use' model

The "pay-after-use" model is straightforward: you consume energy throughout a billing period, and then your supplier sends you a bill for that usage. This allows for greater flexibility in managing your energy costs, as you are not constantly topping up. It also means you can benefit from consistent energy supply without interruption, provided your bills are paid.

Credit meter vs prepayment meter

Key differences

The fundamental difference between a credit meter and a prepayment meter lies in how you pay for your energy. With a credit meter, you pay for energy after you have used it, typically via Direct Debit. A prepayment meter, on the other hand, requires you to pay for your energy in advance by topping up a key or card. This means if you run out of credit, your supply will cut off until you top up again.

Benefits of a credit meter

Credit meters offer several advantages. They provide a continuous energy supply, removing the risk of self-disconnection if you forget to top up. They also typically offer access to a wider range of tariffs, often with more competitive rates than prepayment options. Managing your energy with a credit meter, especially a smart one, can also be more convenient, allowing for automatic readings and easier budgeting.

When a prepayment meter might be used

Prepayment meters are generally used in specific situations, such as when a household has a history of debt with an energy supplier or struggles to manage their energy budget. While they can help control spending by making you aware of your usage as you go, they often come with higher unit rates and standing charges.

Managing your credit meter and billing

Reading your traditional credit meter

If you have a traditional credit meter, you will need to take regular readings and submit them to your energy supplier. This ensures your bills are accurate and based on your actual usage, rather than estimates. Estimated bills can sometimes be too high or too low, leading to unexpected costs or large catch-up payments. For more details on how to read your meter, see our guide on how to read your meter.

Understanding your energy bill

Your energy bill will detail your consumption in kWh, the unit rate you are charged, and any standing charges. It will also show your payment history and any outstanding balance. The average UK home uses around 2,500 kWh of electricity per year, which can help you gauge your own consumption patterns. For a deeper dive into your energy statement, read our guide on understanding your energy bill.

Monthly billing with Fuse Energy

Fuse Energy simplifies billing by operating on a calendar-month basis. This means you receive a clear, predictable bill each month for the energy you used in the preceding month. This approach, combined with real-time usage data from smart meters, significantly reduces the need for estimated bills and provides greater transparency and control over your energy costs.

The future: smart credit meters

What is a smart credit meter?

A smart credit meter is a modern type of credit meter that automatically sends your energy readings directly to your supplier. This means you no longer need to submit manual readings, and your bills are typically accurate, based on your actual consumption. Smart meters also come with an in-home display that shows your energy usage in near real-time, helping you understand and manage your consumption.

Benefits of smart meters for control and transparency

Smart meters provide unprecedented control and transparency over your energy. They offer real-time data, allowing you to see how much energy you are using and what it is costing you. This insight can empower you to make informed decisions about your energy habits, potentially leading to savings. For example, Fuse's app integration with smart meters offers clear, real-time insights into energy usage, minimising estimated bills and increasing customer control over their consumption.

Upgrading to a smart meter

Upgrading to a smart meter is usually free and can be arranged through your energy supplier. It is a key step towards modernising your home energy management, aligning with a more efficient, data-driven energy system. Learn more about smart meter installation.

Switching from a prepayment meter

Eligibility for a credit meter

If you currently have a prepayment meter and wish to switch to a credit meter (and potentially change from prepayment to Direct Debit), your energy supplier will assess your eligibility. This typically involves a credit check to ensure you can manage a "pay-after-use" billing system. If you have a good payment history and no outstanding debt, you are more likely to be eligible. However, the Debt Assignment Protocol (DAP) allows prepayment customers with debt up to £500 per fuel to switch, with the debt transferred to the new supplier, though the new supplier is not obliged to accept it.

The process of changing meter types

The process for changing meter types usually starts with contacting your current energy supplier. They will guide you through the eligibility criteria and arrange for the meter exchange if you qualify. Once you have a credit meter installed, you can then explore different tariffs and payment methods, such as Direct Debit, which often offer better value.

What about radio Teleswitch Service (RTS) meters?

Radio Teleswitch Service (RTS) meters are an older type of meter that uses a longwave radio signal to switch between peak and off-peak rates. These meters are being phased out across the industry, with the switch-off beginning on 30 June 2025. If you have an RTS meter, your current supplier will replace it with a smart meter, usually at no cost to you. Once this upgrade is complete, you will be on a modern meter type, allowing you to access the benefits of smart metering and potentially switch to suppliers like Fuse Energy. Do not expect Fuse Energy to install or convert RTS meters; your current supplier handles this upgrade.

Fuse Energy positions the smart credit meter as the foundation for a modern, transparent, and empowering energy experience, enhanced by monthly billing and real-time app insights. Fuse ensures a smooth transition and ongoing assistance for customers managing their credit meter and understanding their billing. Take the stress out of managing your energy. With Fuse Energy, you get clear pricing, real-time usage data, and a modern energy experience designed around you. Signing up takes just a few minutes, so you can take control of your bills from day one. Click here to switch to Fuse Energy today and start saving.