Saving money with a prepayment meter?

_Persephone

I'm currently with EON and seem to be paying a lot for electricity a month (£60 - 80) as I am on a prepayment meter.

I live in an all-electric property with Economy 7 storage heaters, and I am on an economy 7 tariff.

I have been living on my own for 3 years, and have always been with EON. Initially they wouldn't let me pay monthly as I had no customer history with them. There is also a £50 charge. When I last enquired about this, they told me that the laws have changed and prepayment customers pay exactly the same as billed customers.

Is this right? Any pointers?? I have had a look for guides on this site, but they all seem to be aimed at billed customers.

Airmike23

Based on application of unit rate costs and standing charges to meter readings (units used), that explanation is correct, you are charged no more than a customer with a credit meter - however, when on a credit meter you get discounts off the cost of the bill. If paying the bill 3 monthly by cash/cheque or credit/debit card you get a 3% discount, if pay by monthly direct debit, get a 6% discount (8% dual fuel) off the cost of electric, and if paying by dd and doing online billing upto 20% discount (varies depending on region of country you live in). But Based on Eon's Standard rate and the pence per unit rates charged you pay no more than a customer on the Eon Standard who pays cash or cheque. Also normal meters more than one pricing option, whereas ppm ther is the Eon Standard rate and Eon Age UK, noting else. Run a comparison, depending on total kWh consumption you'll probably find BG on a ppm meter is tyhe cheapest for you if you do not want to pay the £51.06 chareg with Eon for them to change to a credit meter so you can pay by dd and get a better tariff from them.

_Persephone

Thanks for your reply. I have just had a look on U-Switch and I can save £81 a year by going with British Gas

For some reason there weren't any plans coming up when I selected any of the pay monthly options - only prepayment. Am I being divvy? Does that mean everyone in my area has a key meter? Or could they not show me a plan because I am on prepayment?

Thank you!

KimYeovil

With some comparison sites you can only compare like with like. If you want to see what prices would be available with a credit meter run through a second time choosing monthly direct debit/credit meter as your current and future payment method.

Make sure to use the same annual kWh useage for both runs.

t0rt0ise

It would probably pay you to change to British Gas with the prepayment meter and then to ask them if they will change the meters to credit meters. They will run a credit check but if that's okay they are likely to change the meters for no charge and then you can change to one of the cheaper tariffs.

Former_E.ON_Company_Representative:_Malc

Hi Persephone

Airmike is spot on. Unit prices for standard credit and prepayment meters are virtually identical although you miss out on the discounts available.

As others have said, pop your usage in kWh on to the comparison sites and see what the best option is for you.

Another way of saving money is by cutting back on your consumption. We may be able to help with this.

Have a chat with our Energy Efficiency team. Give them a list of your appliances and they'll be happy to advise.

Ask for a copy of a booklet called '100 ways to save money by saving energy.' It's free and contains lots of useful tips.

Check out our website, too; particularly the Interactive House and Energy Fit campaign. More good ideas here.

Don't worry if you decide to change suppliers. This advice is still open to you.

Hope this helps Persephone. Give me a shout if you need any more info as will be happy to help.

Malc

Nimeth

t0rt0ise wrote: »

It would probably pay you to change to British Gas with the prepayment meter and then to ask them if they will change the meters to credit meters. They will run a credit check but if that's okay they are likely to change the meters for no charge and then you can change to one of the cheaper tariffs.

Really? When I moved to my current house, there were pre-payment meters installed from British Gas. When I asked to change to credit meters, they tried to charge £300 to do it! Or have they changed their tune on that?

OP, if you do decide to switch, have you checked out Southern Electric? Or do they come out more expensive?

eurmalian

Nimeth wrote: »

Really? When I moved to my current house, there were pre-payment meters installed from British Gas. When I asked to change to credit meters, they tried to charge £300 to do it! Or have they changed their tune on that?

OP, if you do decide to switch, have you checked out Southern Electric? Or do they come out more expensive?

For the last few years, British Gas charge you a security deposit if you fail the credit check with them. That usually is in the hundreds of pounds and will be kept for a year to guarantee payment, then refunded (if you paid your bills on time).

However, if you pass the credit check then you don't have to pay anything. It seems to me a fairly sensible precaution on their behalf and much better than just flat out charging everyone who wants to change the meters.

_Persephone

Thank you all for your replies. I went on U-Switch and I am waiting to change to British Gas. I also ordered one of those doo-dads from EON that switch your TV off by the mains when you put it on to standby, as that is the only thing I have on constantly, aside from the fridge.

My credit rating has taken a bit of a battering recently, so I will probably wait a little while before asking to change to monthly billing!

t0rt0ise

I just turn mine off at the socket when I've finished with the TV.