Any reason someone would CHOOSE to be on prepayment meters?

What_time_is_it

I suspect that lots of people are on prepayment meters who don't actually have to be. Would it be good general advice to encourage everyone on prepayment to get onto standard meters now if they can? Or are there genuine reasons why prepayment might be a better choice for some people?

brewerdave

I suppose being on a prepay is the ultimate energy expenditure control mechanism - if you haven't got it ,you can't spend it !!!

Mstty

Maybe this will help from a very quick search

https://forums.moneysavingexpert.com/discussion/5011592/prepayment-meters-good-or-bad/p1

What_time_is_it

ioealshk said:

Takes away ALL the hassle of dealing with the estimated DDs and unhelpful supplier's customer services. I couldn't understand why would anyone choose non-pre-payment meter after moving out of the house with one.

For someone who has never dealt with companies and DDs it could be overwhelming. My bills after moving to a normal meter were all over the place, incorrect and estimated with no guidance on how one should manage them.

I got used to a normal meter now, but at a cost of a lot of nerves over the years.

The only problem was of course making sure you had enough cards over Christmas, but that's manageable.

Thanks for this. That's really illuminating. Hope your are getting on ok now. 
Btw, I had to re-read the bit at the end about Christmas cards!

KxMx

My Aunt and Cousin stick with pre payment because they "don't want to be presented with a big bill" 
Even though they know that pre payment is absolutely the most expensive way to pay for energy use. 

Me, I'm happy with quarterly bills and setting aside money once a month ready for said bills, I tend to put away a higher amount October - March to cover the winter. 

What_time_is_it

Are prepayment tariffs the same as the SVR? 

elsien

No,they tend to be more expensive. 

And obviously you can’t take advantage of cheaper online tariffs. Or those which are cheaper but require a direct debit.

macman

Given the huge rises overall, isn't the price differential between credit meters and PPM's relatively smaller now?
For many, it's not a matter of choice: at last count (2018) there were 2.1m people in the UK without a bank account, which obviously precludes you from having a credit meter.

Alnat1

@KxMx Are you saying you don't pay by DD, either Fixed or Variable? You simply pay the bill yourself when it's issued?

If this is the case you are probably paying higher rates for not using DD (average is 7% more) and this is probably more than your aunt and cousin, prepayment rates aren't much different to SVT these days.

KxMx

@Alnat1

I moved in June and the supplier only offered SVT or fixed direct debit. 
I feel DD payment levels can far exceed actual usage and usually better reflects what the supplier feels they can get away with, anyway I simply don't have the income for the amounts they generally ask for. 
Even with the benefit of building up credit for winter. 

My July electricity cost was £32, there is no way any supplier these days would allow me a fixed DD anywhere near that. 

I am however open to all options over the winter and am actively researching costs currently. 

Alnat1

You can with most suppliers choose VARIABLE DD. This mean you give a monthly meter reading, a bill is issued and around 14 days later the energy company claims the DD for the amount of the bill. As it's paid by DD you get the lower rates. The account doesn't build up debit/credit as it's always paid in full.

More common is a FIXED DD where you pay equal amounts each month that may or may not be around your annual costs. Some prefer this as it's a set amount they can budget for.