Are smart prepayment meters more expensive than STD smart meters?

warren_h_2

Hello

I have lived in a rented studio flat for a number of years and have had a prepayment token electric meter in the flat. I know prepayment meters are generally more expensive than a bill from the energy provider, but I have been happy with this arrangement.
Especially during summer as electric generally costs around £10 a week, and I just put £10 on the token every week at the Co-op.

However I may be moving into my Dad's house shortly. He has both gas and electric and pays £100 a month by direct debit to Octopus Energy. In summer he uses less than his allocated energy and builds up credits that he says he uses in the Winter when the heating's turned on more.

I do not like this arrangement and would like to 100% pay for what energy I use every month or week (as I did in my studio flat).

I'm thinking the best way to do this would be to get a prepayment smart meter installed. Then I can just top up by X amount every week.
However, will I have to pay a higher price for gas and electric by using a prepayment smart meter? As opposed to the cost of gas & electric with a STD smart meter?

I want to 100% pay for only the gas and electric I use each week or month. And don't want to be paying for energy in the summer that I'm not using. 
What do you guys suggest?

Also, with a STD smart meter is it possible to get a bill from the energy provider for the energy that is only used? Or do I have to get these set monthly tariffs?

Thanks     

    

ariarnia

i think at the moment under the cap pre payment smart meters are actually one of the cheapest (if not the cheapest) way to pay. but you might want to actually get some quotes from suppliers and you might need to pay for one to be installed.

the other option is variable direct debit (not offered by all suppliers) but that depends on WHY you prefer pre payment. if its because it sets you a budget and when you run out of your allocated £10 it disconnects and that reminds you about your usage then variable dd might not be right as you will be billed at the end of the month. if you are happy that you at the end of the month you might get a gas bill for £10 in summer and £100 in winter because you only use the water in summer but had the heating on that month in winter then it might be.  

really tho if your moving in to your dads house he's probably the account holder so can't he just give you a bill each month and keep paying by dd if he wants to?

400ixl

Many suppliers do variable direct Debit on a monthly basis. You get a bill for the amount used that month and the next DD is adjusted to pay that exact amount. Less in the Summer, more in the Winter.

The main difference is that you don't get to cap it as you could with a pre-pay meter, but do get a cheaper rate.

warren_h_2

Ariarnia, my Dad is very seriously ill. I will be inheriting the house at some point in the future. Bills will be sent to me.

400ixl said:

Many suppliers do variable direct Debit on a monthly basis. You get a bill for the amount used that month and the next DD is adjusted to pay that exact amount. Less in the Summer, more in the Winter.

The main difference is that you don't get to cap it as you could with a pre-pay meter, but do get a cheaper rate.

Are right I will probably get a standard smart meter installed and go with variable bills. That's as long as they are cheaper than prepayment smart meters (ariana says differently above). Nevertheless I will make some enquiries and look into this. 


This will be the first time I'll be paying for energy by direct debit and not through prepayment. Both my Mum and Dad currently pay by DB but have fixed tariff bills. They didn't mention variable bills to me.

Fixed tariff bills aren't really my thing.   

Thanks for the advice
 

ariarnia

warren_h_2 said:

Ariarnia, my Dad is very seriously ill. I will be inheriting the house at some point in the future. Bills will be sent to me.

400ixl said:

Many suppliers do variable direct Debit on a monthly basis. You get a bill for the amount used that month and the next DD is adjusted to pay that exact amount. Less in the Summer, more in the Winter.

The main difference is that you don't get to cap it as you could with a pre-pay meter, but do get a cheaper rate.

Are right I will probably get a standard smart meter installed and go with variable bills. That's as long as they are cheaper than prepayment smart meters (ariana says differently above). Nevertheless I will make some enquiries and look into this. 


This will be the first time I'll be paying for energy by direct debit and not through prepayment. Both my Mum and Dad currently pay by DB but have fixed tariff bills. They didn't mention variable bills to me.

Fixed tariff bills aren't really my thing.   

Thanks for the advice
 

i'm sorry to hear your dad is ill. remember to take some time to care of yourself as well as worrying about everything else thats going on

i didn't say they were cheaper. i said they were one of the cheapest (the most expensive i think is paying by cash on receipt of bill). the rates are very similar but they do vary a little between the diffent regions (tho those rates are only around until april). 

you can see the full list of diffent price caps and rates here (inc dd and prepay) and use the drop down to look for your region. 
https://www.moneysavingexpert.com/utilities/what-are-the-price-cap-unit-rates-/

but you might want to think about more than the cheapest tho. it could be once your in the house and have an idea of how it uses energy that a tarrif like agile (where the energy costs different amounts at diffent times of day) is cheapest. but that uncertainty might really not be for you if the reason you like prepayment is to budget 10 a week. 

same with variable. it lets you pay for what you use and you can't get into loads of debt easily but if you want to stick to a strict budget then variable might be a really bad idea as you get the bill at the end of the month and unless you keep really close track of your meter readings yourself then you could go over. 

one thing that might be good though is that i think someone was saying on another thread that you can switch a smart meter to pre pay without needing them to come and actually physically change the meter. not sure about that so someone might confirm but if so then if they fit a free smart meter now you could be able to switch free of charge at some point int he future if you change your mind. 

warren_h_2

Ariarnia thanks for your very helpful advice.

Once I move into the house I don't expect to be using much more energy than my studio flat. There will only be me here; me cooking, showering etc etc.
As long as I'm careful with how much energy I use a variable bill (at this moment) seems attractive.

Quote:
one thing that might be good though is that i think someone was saying on another thread that you can switch a smart meter to pre pay without needing them to come and actually physically change the meter. not sure about that so someone might confirm but if so then if they fit a free smart meter now you could be able to switch free of charge at some point int he future if you change your mind. 

Thanks, I will definitely get a smart meter installed in the future. I will ask the energy company if it's possible to get one that can be switched to prepayment.   

   

warren_h_2

Thanks for the concern for myself and my Dad too 

Spoonie_Turtle

You can see Octopus' rates here, so you will be able to work out whether prepayment or Direct Debit is cheaper (they do offer variable DD but it's not made very clear)  https://octopus.energy/blog/energy-price-cap-oct-2022/
Actually glancing at it myself, DD is definitely the cheaper method with them.

Sorry to hear about your Dad, I hope you both have all the support you need.

t0rt0ise

There's only one problem with your plan of getting a smart meter fitted and that is that you may have to wait a long time for the supplier to fit the meter, and I mean months or years.