Prepayment meters, good or bad?

coffeepaul

Hi all, im looking to get prepayment meters installed, think its easier to budget rather than get big bills, I appreciate that you pay slightly more for your energy but saves like I say big bills and easier to budget, has anyone got anything positive to say about prepayment and any positive experiences, not getting them in till the 21st, thanks, im with EDF.

Nada666

No, there is nothing positive to say about them.

If you like paying as you go you are entirely free to do that with a credit meter - take out a standard tariff and make payments as and when you like that correspond with how much you have used. You pay the same price but do not have the fear of cutting yourself off.

Prepayment meters just mean you continually have enormous bills - particularly in winter, each week or each fortnight. They increase the number not decrease them.

But if you want them you are free to use them if you like.

[Deleted User]

Prepay meters are not much good to people on a money saving forum. You re paying top dollar for the pleasure of giving the suppliers their money upfront. They dont make economic sense when approx 15% cheaper one yearly fix deals are available for direct debits. They are also inconvenient unless an online payment option is available.

HappyMJ

Direct debit is cheaper than a prepayment meter.. You still pay in advance but the payments are spread out over the year so you pay the same each month. You also get a discount for paying by direct debit.

If you are finding it difficult to manage monthly payments then set up a bank account just for this one direct debit and transfer an amount to the bank account from your weekly wages to cover your usage....and keep an eye on it. The supplier may try to increase the amount you pay and it's up to you to keep them informed of the meter readings and the monthly amount will be much more accurate. Personally I'd read the meter weekly and multiply it by your unit rate and add the weekly standing charge and transfer that into the account. I'd ignore the direct debit discount and use that as a bonus at the end of 12 months of paying on time to reward yourself.

Jaybob66

I've just registered for the opposite reason to you. I've been on prepayment for the last 6 years and I'm looking to move to DD.

PP is great this time of year, I hardly put anything in the gas and feel a bit cash rich for the summer.

But come winter that will change, the last 3 winters I've had to find £45 per week just for gas, electricity wasn't far behind. If either of them goes off you lose hot water! A trip to the 24/7 petrol station in -10c isn't any joy at 11:30pm

My plan is to switch to a fixed DD because I can't budget. I need to switch because I feel like i've been ripping myself off and having "energy bill stress" every week or so during winter. Better to read the meter regularly and update the provider so the DD stays accurate methinks.

Snakey

The only good thing to say about them is that you can see the cost of everything you are doing. I quite liked being able to see e.g. that the shower I just had cost me 14p or whatever.

Beyond that, they are just a royal pain in the backside. Good for people who are literally incapable of budgeting, because it is impossible to get yourself in debt (beyond emergency credit plus the daily standing charge), but that is all. The tariff is the worst you can get, and you have to pay in advance! And you have to put your shoes on and find your keys and go outside for the privilege of doing so!

I've no doubt people exist who do not even have the self-discipline necessary to put the coins that they would have spent on credit into a jar and leave them there, but unless that's you I'd suggest you do that instead, pay it into the bank each month, and benefit from the direct debit savings.

If you are determined to switch then summer is the best time to do it (assuming you're in credit at the moment), as you can benefit from the cash flow advantage of cheaper bills in the summer. Although be warned, it took them five or six weeks to get around here to swap mine out, so if it's the same the other way around then you might not get as much of that benefit as you'd hoped.

coffeepaul

thanks for the replys, one of the reasons is im hoping to let my house out and dont want any tenant having the option to run up energy bills at the address, Ive also read today in the paper about EDF bringing out a fixed rate promotion for prepayment, will have to look that up, thanks

Bluebirdman_of_Alcathays

coffeepaul wrote: »

thanks for the replys, one of the reasons is im hoping to let my house out and dont want any tenant having the option to run up energy bills at the address, Ive also read today in the paper about EDF bringing out a fixed rate promotion for prepayment, will have to look that up, thanks

What the tenant does or doesn't do with the bills is none of your concern. If I moved into a property and they had pre payment meters, the first thing I'd do is look at getting them removed!

ashtonwn4

I'm sorry but prepayment meters are not as bad as you seem. Yeah I'll admit they do carry a higher tariff but with would you rather have:

a) Being on prepayment and not being able to put the heating etc on as much as you'd like for a week or so, until you got paid

or

b) Being on normal meter, not being able to pay the bill and being cut off. No lighting, No TV, no cooker (Unless thats gas)..........

Don't get me wrong, I totally understand where you're coming from but there's two sides to every coin.


Ashton

Nada666

ashtonwn4 wrote: »

I'm sorry but prepayment meters are not as bad as you seem. Yeah I'll admit they do carry a higher tariff but with would you rather have:

a) Being on prepayment and not being able to put the heating etc on as much as you'd like for a week or so, until you got paid

or

b) Being on normal meter, not being able to pay the bill and being cut off. No lighting, No TV, no cooker (Unless thats gas)..........

Except the chances and number of times of you being cut off (even if prepayment meters were not available to suppliers) is far higher with prepayment and more likely to be self-imposed by the customer.

But I don't think we are discussing a total ban on prepayment meters as a last resort - it is customers electively choosing to adopt them from the off that is bizarre. Some personality types may prefer them and are happy with the inconvenience and extra cost.

No parents or elderly or disabled householder should ever choose them.

Joyful

I speak to elderly customers every day. Often they have a credit meter for gas and a prepayment for electric. Even though I tell them all the positives about changing to a credit meter they prefer the status quo. Many have both prepayment and say they feel better this way as no shock from bills.

Thousands of people want prepayment meters and do not want Direct debits. As a prepayment meter costs the same as a customer who pays cash when they get their bill you can see why they are comfortable with paying this way. We need to listen and stop shouting that they should all have credit meters. The opposite is the customers that are living in fear due to using more than they can afford and getting into debt.

If someone wants a PP meter the easiest way is to ask for their yearly consumption and split it monthly. That way they can budget and not pay extra in the winter. Of course this is better if you start this way early in the year, otherwise they should add more to the meters now in the summer to build a credit going into winter.

I speak to many people on benefits and advise above but they say summer is for spending on other things. I can understand this but I advise them if they paid with Direct debit the amount is fixed every month and many people on benefits are able to do this. They still prefer to be upset when the winter comes and they are putting 3 times their summer amounts into the meter but forget they barely put anything in during the other months.

It's all about educating the best way to use a PP meter. I remember speaking to a lady in the very cold winter a few years ago. She religiously put x into the meter every week from her benefits and for the first time in 15 years had gone into her emergency credit. She advised from that day on she would increase her weekly amount by £1 to stop it happening again. I do so wish more customers would do this.