Pre-Paid Meters

MightyTache

I find it illogical that those that pay in advance for their energy, at zero risk to the provider, actually pay almost twice as much as those paying by monthly DD or in arrears.  
Those most at risk in our society pay more!  Surely paying for energy in advance via a pre-paid meter should be the cheapest way to buy energy!  

To help those most in need a campaign to address this would have the biggest impact.

GingerTim

As things stand, a number of pre-payment tariffs are actually slightly cheaper than paying by direct debit.

DullGreyGuy

See https://www.moneysavingexpert.com/utilities/switch-prepaid-gas-electricity/

The "twice as much" is not accurate and the article has comment on why it costs more

EssexHebridean

MightyTache said:

I find it illogical that those that pay in advance for their energy, at zero risk to the provider, actually pay almost twice as much as those paying by monthly DD or in arrears.  
Those most at risk in our society pay more!  Surely paying for energy in advance via a pre-paid meter should be the cheapest way to buy energy!  

To help those most in need a campaign to address this would have the biggest impact.

Could you provide some evidence for your claim that those on PP meters pay "almost twice as much" please? 

QrizB

Welcome to the forum.

MightyTache said:

I find it illogical that those that pay in advance for their energy, at zero risk to the provider, actually pay almost twice as much as those paying by monthly DD or in arrears. 

Fortunately, this is not the case. You can rest easy.

Astria

Deleted_User said:

My guess is that the NEED most people on DD because their business model relies on it. Which is why it's being kept quiet and made difficult for those of us trying to switch. 

There business model doesn't need it, but it's still the most convenient method for me at the time - I don't really want to remember to go down the local shop to top up my meter every week when it can all be handled automatically, plus my bank gives me a discount by paying by DD (4% for the last 2 months). It's incredibly easy to switch to pre-pay if you have a smart meter and can be done the same day as requested. They do warn however that switching back to a DD account afterwards may involve a credit search.

EssexHebridean

yes - the cashback from the bank is definitely an advantage to the DD payment method for those of us with the right account, isn't it!  

Ectophile

Deleted_User said:

The government has legislated to the point where it is impossible to stay alive without access to the national grid. Even cavemen had fire to keep warm and cook. We aren't allowed to burn green/scrap wood, coal etc.

That's because people want clean air that's fit to breathe.  We don't want to go back to the days of pea-soupers, just because a few selfish people want to burn any old rubbish in their fireplaces.

Astria

Ectophile said:

Deleted_User said:

The government has legislated to the point where it is impossible to stay alive without access to the national grid. Even cavemen had fire to keep warm and cook. We aren't allowed to burn green/scrap wood, coal etc.

That's because people want clean air that's fit to breathe.  We don't want to go back to the days of pea-soupers, just because a few selfish people want to burn any old rubbish in their fireplaces.

Well, we still have them, typically on the night of the 5th November 😁 I remember trying to drive home just after midnight and having to follow the side of the road because I couldn't see further than the end of my bonnet. It's nice not to have them regularly though, or walk down the street in the day and get a face full of burnt remains of scrap wood.

Jyana

Deleted_User said:

MightyTache said:

I find it illogical that those that pay in advance for their energy, at zero risk to the provider, actually pay almost twice as much as those paying by monthly DD or in arrears.  
Those most at risk in our society pay more!  Surely paying for energy in advance via a pre-paid meter should be the cheapest way to buy energy!  

To help those most in need a campaign to address this would have the biggest impact.

Someone has posted EDF tariffs elsewhere and they ARE correct. Prepayment tariffs are now cheaper - but only if you use a few kwh a day. 

Most people think DD is cheapest as that's what's been heavily pushed by Martin Lewis and the media. But somewhere along the line they've changed the tariffs without most people realizing. 

My guess is that the NEED most people on DD because their business model relies on it. Which is why it's being kept quiet and made difficult for those of us trying to switch. 

But in this case - it looks like they have done the right thing tariff wise re the people that they've switched due to debt problems.

https://metro.co.uk/2022/08/26/is-it-cheaper-to-pay-for-energy-by-prepayment-meter-or-direct-debit-17248854/

Once again, as pointed out to in that very thread by other people, you are getting the bolded piece information totally wrong. Is it on purpose, or do you skim everything you read so that the correct information doesn't actually stay in your head? Either way, it kind of explains a lot.

Jyana

Deleted_User said:

Jyana said:

Deleted_User said:

MightyTache said:

I find it illogical that those that pay in advance for their energy, at zero risk to the provider, actually pay almost twice as much as those paying by monthly DD or in arrears.  
Those most at risk in our society pay more!  Surely paying for energy in advance via a pre-paid meter should be the cheapest way to buy energy!  

To help those most in need a campaign to address this would have the biggest impact.

Someone has posted EDF tariffs elsewhere and they ARE correct. Prepayment tariffs are now cheaper - but only if you use a few kwh a day. 

Most people think DD is cheapest as that's what's been heavily pushed by Martin Lewis and the media. But somewhere along the line they've changed the tariffs without most people realizing. 

My guess is that the NEED most people on DD because their business model relies on it. Which is why it's being kept quiet and made difficult for those of us trying to switch. 

But in this case - it looks like they have done the right thing tariff wise re the people that they've switched due to debt problems.

https://metro.co.uk/2022/08/26/is-it-cheaper-to-pay-for-energy-by-prepayment-meter-or-direct-debit-17248854/

Once again, as pointed out to in that very thread by other people, you are getting the bolded piece information totally wrong. Is it on purpose, or do you skim everything you read so that the correct information doesn't actually stay in your head? Either way, it kind of explains a lot.

I'm not sure what you're on about? The standing charge is higher but the unit rate is cheaper. Therefore it is only a cheaper tariff if you use enough units.

Why not calmly say what you disagree with and explain why? Do you accept that a higher standing charge will negate the benefit of a cheaper unit rate if you don't use  much energy? Do you think I'm mistaken about the standing charge? Or do you think I haven't explained clearly enough what I mean?

Yes exactly, if you use enough units. Not a few - which is a small amount.