HOW TO USE A SMART METER IN PREPAY MODE TO SAVE MONEY
Smart meters are the new generation of energy meters being rolled out in homes in England, Scotland and Wales. Smart meters come with an in-home display (IHD) which monitors and displays your energy use in near real-time, so you can see exactly how much you're using in pounds and pence.
WHAT IS A SMART METER IN PREPAY MODE?
There are two methods of paying for your energy with a smart meter: prepayment (also called pay-as-you-go) and credit. In credit mode, you pay for your energy after you've used it. With a prepayment method, you top up your gas and electricity credit and pay for energy as you go.
With traditional prepayment meters, you need to manually top up a card or key at PayPoints. But with smart meters in prepay mode the process is simpler: you can choose to top up anywhere and anytime online - no gas card or electricity key necessary.
Here, we're looking at the ways you can use your smart meter in prepay mode to help bring costs down:
- Adjusting your energy use
- Keeping track of what you've spent and what you have left
- Shopping around for the tariff that's right for you
- Additionally, if you're eligible, applying for grants and benefits that help with your energy costs
-
Smart meters are available for prepay customers.
They come with a handy in-home display that clearly shows you how much credit you’ve got left. Then simply top up, however, and wherever you like. You can do this online, by phone, text, or via an app. This may vary depending on your supplier. If you prefer, you can still top up in person at your local shop and credit will be added to your account automatically.
They could also help with household budgeting because you’ll be able to see in near-real time just how much energy you're using and how much it’s costing you. Of course, smart meters are set up to work for both prepay and credit customers. if you'd prefer to change between credit and prepay, your supplier can make this change without you needing a whole new meter.
How very smart indeed.
SO, DO SMART METERS IN PREPAY MODE SAVE MONEY?
With smart meters in credit or prepay mode, simply having one will not automatically save you money, but the near real-time energy usage data smart meters offer will help you to make various adjustments that can help cut household costs.
Smart meters are also helping Britain build a more flexible and resilient energy system fit for the 21st century. This could help Britain rely less on fossil fuels and be able to better meet the supply and demand needs for consumers.
HOW TO USE A SMART METER IN PREPAY MODE
The smart meter system comprises two main parts: the meter itself, and the accompanying in-home display (IHD). Your IHD is fed information securely by your smart meter to show you in near real-time exactly how much gas and electricity you're using, how much it's costing, and - in the case of a meter in prepay mode - how much credit you have left.
A smart meter in prepay mode also allows you to top up online, via your phone or on the smart meter or IHD itself.
HOW TO USE A SMART METER IN PREPAY MODE TO SAVE MONEY
1. Adjusting your energy use
The key benefit of all smart meters is that they can help us change our energy behaviours. The IHD in prepay mode tells you your balance in pounds and pence, so you can see your energy consumption at a glance.
You can use this information to work out which appliances, such as the kettle, the oven or the tumble dryer are using the most energy and, if you can, adjust accordingly - like, for example, turning appliances off standby. This way, you will identify new opportunities to save energy.
Not only will they help you save, but they can also give you a sense of control over your costs - if your heating is on you'll be able to see how much it is costing.
IHDs will also give out a low credit alert if they've fallen below a low threshold and enter emergency credit, which means you're less likely to be caught short.
2. Understanding your prepayment IHD's capabilities
Learning to read your prepayment IHD is an important part of understanding how much energy you use and what this equates to in pounds and pence. Contact your energy supplier for their IHD user guide to help you read and understand your IHD.
3. Easily keep track of energy credit
Use your smart meter's in-home display to easily keep track of your energy credit. With traditional meters in prepay mode, you may have found yourself caught out having used all your energy credit early in the month. Now, smart meters mean you can keep an eye on your spending as you go.
4. Shop around for the right tariff
Most energy suppliers offer different tariff options, but it can be hard to know which best suits you. Use the energy data your smart meter gives you to shop around for the best tariff for your energy needs, and look out for suppliers who offer prepay customers discounts.
5. Keep an eye out for any government financial assistance that you may be eligible for
You may be eligible for extra help with programmes and schemes like Winter Fuel Payment or Warm Home Discount. We've put together a list of these grants and schemes run by the government and energy suppliers (updated for autumn/winter 2022) or contact Citizens Advice for further assistance.
For information about smart meters in prepay mode in other formats and languages, see our guide to smart prepayment meters on our Resource Centre and choose from the available languages and accessible formats.
Want to know more?
For more information about smart meters in prepayment mode, why not check out some of our other pages:
- Benefits of smart meters for prepay customers
- Intro to smart prepay
- Who can get a smart meter?
- Guide to smart prepayment meters - in accessible formats and other languages.