How to use a smart meter in prepay mode to save money

• What is a smart meter in prepay mode?

• Do smart meters in prepay mode save money?

• How to use a smart meter in prepay mode: Understanding your smart meter system

• How to use a smart meter in prepay mode to save money

• Can you top up smart meter online?

• FAQs

There are two main ways to pay for energy with a smart meter:

• Credit mode

• Prepayment mode

You may also see this described as smart meter prepayment mode, which simply means you add credit in advance and your balance reduces as you use energy.

Smart meter credit mode refers to paying for your energy after you’ve used it, usually by monthly bill or Direct Debit. This works differently from prepay because you pay for energy after you’ve used it.

With traditional prepayment meters, you need to manually top up a card or key at PayPoint locations. But with smart meters in prepay mode, the process is easier: you can choose to top up anywhere, anytime online - no gas card or electricity key necessary.

You can learn more in benefits of smart meters for prepay customers.

Next, 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

1. 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.

2. Adjusting your energy use

One of the main benefits of a prepay mode is the ability to monitor energy usage in pounds and pence throughout the day. The IHD in prepay mode displays 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, oven or tumble dryer, are using the most energy and, if you can, adjust accordingly - for example, by turning appliances off standby. This way, you can 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 a low-credit alert if your balance falls below a set threshold and allows you to enter emergency credit, which means you’re less likely to be caught short.

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.

Most pay as you go smart meter systems include emergency credit if your balance reaches zero. You can usually activate emergency credit directly through your meter or in-home display.

Emergency credit is designed to:

• Help avoid sudden disconnection

• Provide temporary energy access

• Give customers time to top up

Knowing how to use emergency credit on smart meter systems can help households avoid interruptions during evenings or weekends when topping up may be harder.

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 through 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.

Yes. Many suppliers allow customers to top up remotely using websites, apps, or phone services.

Common top-up methods include:

• Supplier mobile apps

• Online account portals

• Phone payments

• Selected PayPoint locations

Understanding how to top up a smart meter can help you avoid running low on energy credit unexpectedly. Most suppliers explain how to top up online, by phone or through their app.

If your meter is set to credit mode rather than prepay, you’ll usually want to know how to pay smart meter bill, which is typically paid by Direct Debit or monthly bill. This is different from prepay, where you add credit before using energy.

Customers can also learn more about billing in how to calculate your energy bill.

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.