Pre-Payment meters vs Direct Debit

MarieMc

Whenever I mention to anyone that I have a British Gas Pre-Payment meter for my gas and electricity, they look at me like I'm crazy.
Either that or they assume I'm a complete tramp who struggles to scrape together £10 to put in the meter.:mad:
Even worse when I go to the local shop and ask them to put £50 on each card, and they keep asking "are you sure?!", yet people who pay their direct debit don't get this treatment.

British Gas told me that changing my meters and paying by direct debit would not decrease my bills as both types of meter have the same charges.

A lot of people seem to think that prepayments are more expensive, is this the case for some suppliers?

I love my pre-payment meter, it makes me more aware of my use/costs.

gemmabe

PLEASE do a price comparison. I went on and on at my Aunt over the exact same thing and she is now paying hundreds less per year.

Would recommend Energyhelpline.com for price comparisons. Just enter the current amount you spend and how you would wish to pay in future (monthly direct debit normally cheapest) and see the difference. That should be telling Before you sign up, though, make sure you clear your cookies then go through a price comparison to place the actual order.

It may be worth asking British Gas to remove the meters and THEN switch - my Aunt did this and got the meters changed for free - now she is on a much cheaper post-pay tariff.

viv0147

Pre-Payment meters are a total rip-off

Joyful

British Gas charge the same as a standard credit rate for Elec PP and £32 a year more for gas. From our Prepayment customers about 75% have no debt. Many choose this for their lifestyle to stay in control so you are not alone.

To save you more money you can sign up for PAYG Click on line as you have 2 PP meters. Are you also aware you can now top up your Gas and Electric online with Home top up?

I speak to customers often who have large credits on the meters as they pay all through the summer when using less and add winter fuel allowances onto the meter too. As we usually only hear about people getting meters for debt this gives a false impression of the huge amount of people who choose them so just tell people you are happy.

Of course a direct debit would save you money( don't quote me but I think about £8 per quarter) but click will save about £70 a year too.

cons

yes it doesnt save you much money compared to there standard tarriff

but when you look at something like Websaver 5 thats 6% cheaper than standard, then you have Direct debit discounts, then dual fuel discounts

KimYeovil

viv0147 wrote: »

Pre-Payment meters are a total rip-off

No they are not - at least not to the customers who use them. They are somewhat subsidised by the rest of the customer base - who may well feel 'ripped off' at the hundreds and thousands of pounds being given away interest-free.

sequence

KimYeovil wrote: »

No they are not - at least not to the customers who use them. They are somewhat subsidised by the rest of the customer base - who may well feel 'ripped off' at the hundreds and thousands of pounds being given away interest-free.

What do you mean by the bold ? Is there any proof of this ?

factoryworker

I detest prepayment meters(PM) and someone will ALWAYS pay more than they have to even with the same supplier; it is now true that PM charges are not at a premium to standard rates (and i can think of one supplier whose standard rates are dearer than PM rtes)-but therin the crux-anyone on standard rates is overpaying; ALL suppliers (except Ebico) have tarifs that are better than standard without tie-ins/exit fees/onerous restrictions, but you can't access any of these tarifs without a credit meter.

Yes, the image of PM tarifs is people on low incomes, and they are often energy companies first response to debt. Whilst i support your valid view that it lets you monitor (control) your usage, you could do this by taking monthly meter readings on a jotter, but one has to accept a LOT of people like them, and that is (the) consumer choice. As long as the consumer is aware of this, there should be no stigma attached, unfortuately there is.

If you like payig cash at the Post office, fine, get your meters exchanged and pay on a payment card; you can read your meters once a month and pay £45 (maximum) against the £50 your currently paying; so for the same control your saving.

I would reiterate advice that generally best to get meters changed with current suppliers; meter exchange costs vary widely from company to company, but even if you current one is one of the dearest, they are often waived for loyal customers/those with children/disabilities/elderly etc; do remember that even at £50 per meter for the cheapest companies, you will recoup this cost in less than ayear unless your a very low user.

In summary, don't feel stimatised, but YOU are paying more than you need to, but don't feel you have to change; if your happy with what its costing you, its irrelevant if you can get it cheaper..

wornoutmumoftwo

I love my prepayment meter. I'm an avid electric obseessive, and used to sit there and try and work out what my quarterly bill would come out at but lo and behold every quarter I'd have this massive bill, whereas now I pop £20 on each week and that's it. In the summer I use as little as £10 a week.

I think it's great for budgeting, and I know I could get a better deal on a credit meter with a different tarif/company but it's peace of mind. I know exactely where I am and no longer dread the prospect of a huge bill.

Premier_2

factoryworker wrote: »

...someone will ALWAYS pay more than they have to even with the same supplier; ...

Hows that then? I'm with Ebico.

factoryworker

Premier wrote: »

Hows that then? I'm with Ebico.

'ALL suppliers (except Ebico) have tarifs that are better than standard'

apologies but the implication within that post was Ebico didn't have a cheaper tarif than there standard rate, purely because there stndard rate is generally cheaper than all other main suppliers standard (and discounted standard non fee/condition tarifs)-i should have made that clear

I am more than happy to clarify/corect, indeed be corrected, and more than happy to endorse Ebico as a fair and equitable energy provider, and indeeed promote their clear pricing strcture as an example of best practice to th rest of th suppliers. I believe strongly that simpler/clearer billing is a must and Ebico lead the field in this regard,,