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Pay as you go gas and electric
Hi! We’ve recently moved into our first house, and it has pay as you go gas and electric meters.
The previous owner told us it was cheaper that way, but we’re pretty sure it isn’t… although now with all the price changes, does it actually make much of a difference?
The PAYG meters are with British Gas, and we’re planning on having a smart meter installed by them (unless the consensus here is that’s a bad idea!)
The PAYG meters are with British Gas, and we’re planning on having a smart meter installed by them (unless the consensus here is that’s a bad idea!)
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PAYG is more expensive.1
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Hi,maybe suited previous owners to help them budget, or maybe meters installed because they were in debt.Did you take meter readings when you moved in and notify BG?Do not use old key as you might be paying off a debt.0
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PAYG has slightly higher standing charges, about 10p for gas and 5p for electricity per day. The unit rates are similar, in some regions even slightly cheaper than credit meters on direct debit.
There is no disadvantage in having a smart meter, even so some people will tell you some wild theories why you should avoid them. Worst case scenario would be that they don't connect and you still need to use them as manual meters.
Probably it will not be possible to switch immediately to a credit meter as this is your first property and will depend on your credit history.
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Just one thing to check as you are with BG - you aren't on Economy 7 for electricity for any reason are you? If so, it IS a reason to be cautious around getting a smart meter as BG currently seem to have issues combining the two things. It's unlikely that you will be as you have gas, but there are a small number of households where that is the situation, hence checking.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
I guess the only possible reason to stay pay as you go is if you can load up credit before October 1st and British Gas are one of the companies that honour your credit purchased at the pre 1st October rate.
You could save yourself quite a bit this way if British Gas allow this.0 -
As things stand, there is not a significant difference between PAYG and direct debit charges. If things ever get back to the good old days, then there would be a significant difference.
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