Prepayment Meters: Rules, Smart Swaps, and Emergency Credit

Prepayment meters (also known as pay-as-you-go meters) require you to pay for your gas or electricity *before* you use it. You top up your balance using a physical key, smart card, or an app if you have a smart prepayment meter.

While prepayment meters make it virtually impossible to fall further into debt, they are historically more expensive per unit of energy than standard credit meters, and you run the real risk of 'self-disconnection' (going without light or heat) if you run out of money to top up.

If your balance drops to zero and you cannot afford to top up immediately, all prepayment meters feature an built-in buffer called **Emergency Credit** (usually £10 to £20). You must manually activate this on your meter or app. Note that the next time you top up, the full amount of emergency credit used will be deducted from your payment.

Most suppliers also offer **Friendly Credit hours** (typically overnight, on weekends, and on bank holidays). During these specified windows, your supply will not cut off even if your balance runs out completely, giving you a safety buffer until shops open or you can access funds.

Under Ofgem regulations, suppliers face incredibly strict legal boundaries regarding when they can force a customer onto a prepayment meter to recover debts. A supplier **cannot** forcibly install a prepayment meter (or remotely switch a smart meter into prepayment mode) if it would be unsafe or impractical for the household.

Forced installations are strictly forbidden if the household includes:

• Anyone reliant on continuous, electronically powered medical equipment (such as an oxygen concentrator).
• An individual with severe mental health conditions, cognitive impairments, or advanced dementia.
• Elderly residents over the age of 75 without alternative support in the home.
• Children under the age of 2 (voluntary caps often extend this to under 5s).

If you no longer want a prepayment meter, you have the right to ask your supplier to switch you to a standard credit meter (where you pay via direct debit or monthly bill).

Most major suppliers will execute this swap for **free**, provided you do not have outstanding energy debt on your account. If you do carry debt, they will usually require you to clear the balance or agree to an alternative repayment method before they will swap the physical hardware or adjust your smart meter settings.