Are prepayment meters still more expensive than standard variable tariffs?

pinkteapot

Moving to a rental property which currently has prepayment meters for gas and elec. Landlord happy for us to change them to standard meters (and we have good credit so supplier would be happy).

I last had prepayment meters 15 years ago at a different rental, which I had changed because everyone said the tariffs are massively more expensive.

Is that still the case today?

This rental will only be for 6-12 months so we'd been planning on going onto a standard variable tariff, rather than a fix, because we'll likely end up paying the early termination charge.

If prepayment will cost more than a standard tariff then we'll change the meters, but if things have changed in the last 15 years then we might not bother as it's short-term. I seem to remember some headlines about energy firms being told off for charging prepayment customers so much...

System

This is what the people at Which have to say:

Quote: You should watch out for... expensive prices. Prepayment is widely accepted to be one of the most expensive ways to pay for gas and electricity. Also, tariff options are more limited for prepayment customers. Which? Switch displays all the prepayment tariffs currently available on the market. Unquote

https://switch.which.co.uk/energy-advice/energy-tariffs-explained.html

pinkteapot

Ah, thanks. Should have Googled better!! We'll get them changed once we're moved in and sorted. We've put a little credit on so we don't have to worry immediately.

Carrot007

They are no more expensive with the big suppliers as they have been capped (no idea if that appleis to the small suppliers).


But you can probably find a better no exit fee tarrif with a standard meter. (and leaving the property generally does no incur termination charges unless something has changed (maybe with the smaller suppliers?).


Not that they should be, they cost a lot more to run and so are putting up the prices for everyone. Though fortunatly there is a simple solution. Only offer prepay on smart meters to cut down on the costs. (for example wanting an emergency top up in the middle of the night witha guaranteed 2 hour responce by claiming there is a baby in the house, only for the engineer to report that they saw no baby and it was a 'crack den' with undesirables so they topepd up rather than confront and left asap).

pinkteapot

Both gas and elec at this house are with Eon. Thanks for the tips - we'll look into tariff options once we're settled.

twhitehousescat

Carrot007 wrote: »

They are no more expensive with the big suppliers as they have been capped (no idea if that appleis to the small suppliers).


But you can probably find a better no exit fee tarrif with a standard meter. (and leaving the property generally does no incur termination charges unless something has changed (maybe with the smaller suppliers?).


Not that they should be, they cost a lot more to run and so are putting up the prices for everyone. Though fortunatly there is a simple solution. Only offer prepay on smart meters to cut down on the costs. (for example wanting an emergency top up in the middle of the night witha guaranteed 2 hour responce by claiming there is a baby in the house, only for the engineer to report that they saw no baby and it was a 'crack den' with undesirables so they topepd up rather than confront and left asap).

yes pre pay was capped , and it was increased to the maximum allowed , and every other prepay co followed suit

[Deleted User]

Carrot007 wrote: »

They are no more expensive with the big suppliers as they have been capped (no idea if that appleis to the small suppliers).


But you can probably find a better no exit fee tarrif with a standard meter. (and leaving the property generally does no incur termination charges unless something has changed (maybe with the smaller suppliers?).


Not that they should be, they cost a lot more to run and so are putting up the prices for everyone. Though fortunatly there is a simple solution. Only offer prepay on smart meters to cut down on the costs. (for example wanting an emergency top up in the middle of the night witha guaranteed 2 hour responce by claiming there is a baby in the house, only for the engineer to report that they saw no baby and it was a 'crack den' with undesirables so they topepd up rather than confront and left asap).

You must have excellent "insider " knowledge to know about these scams. My colleague is sick to death having to go out late on a saturday night because this new immigrant couple say they do not have transport to the Paypoint shop a mile away. As you say, rather than risk arguments he notes what he thinks is a scam on his computer and tops up and leaves.. Only problem is that anything we ever enter into the "notes " section never gets actioned upon so it just continues at great cost to the suppliers and ultimately the consumer.
As you so rightly point out this would nt happen with smart prepayment meters.. The old prepays are doubly subsidised to the extent they are cheaper than standard /variable rates

Carrot007

Houbara wrote: »

You must have excellent "insider " knowledge

I am fairly open that the utility industry is where I work, check my other posts if you like.


And yes, working in the meter operator in the non-easy stuff section I used to come across many such things. That is just one example.



I do not say who as since this is not official business it would be gross misconduct.


As per other posts though I have not worked in domestic for around 10 years, though I still talk to people there.


All I was saying it that prepayment is a bad idea and a poor mitigation of the problem at hand. Most other countries do not do it, they just cut you off if you do not pay. But I do see smart as a solution if the government would allow it. Though charging people more (hopefully short term) so companies can run a useful revenue protection department and setting targets for the department would hepl but would be hard to do. At least on the business side the company gets paid, even if very usually late!