How much do you pay for electric on smart meter

WiserMiser

Heedtheadvice said:

Nevertheless pay as you go is probably the most expensive way of paying for what you use. If you can get on to Direct Debit but that is not easy once on PAYG particularly if that has been forced on you owing to payment problems.

I think Ofgem changed that not so long ago, so pre-payment is now slightly cheaper than DD, although obviously less convenient for most people.

Chrysalis

I pay for what I use, sorry if the answer seems stupid, but the question isnt a good one.

Ultimately you pay the same on a smart meter as a dumb meter, if you on the same tariff, using the same amount.

But some tariffs are exclusive to smart meters, so you have more options open to you which increases your chance of saving money.

You also have the benefit of having automated up to date usage data.

Heedtheadvice

Ayr_Rage said:

Heedtheadvice said:

⁷

Nevertheless pay as you go is probably the most expensive way of paying for what you use. 

I think the recent changes have turned that on its head for those on the SV tariff.

• For standard variable tariffs: Under the current energy price cap, prepayment rates are slightly cheaper than direct debit rates. This is due to a government-led change that removed the "prepayment premium". 

A fix would likely be cheaper if available to the OP.

Thanks for that. I learn something everyday...I hope!

Scot_39

Ayr_Rage said:

Heedtheadvice said:

Nevertheless pay as you go is probably the most expensive way of paying for what you use. 

I think the recent changes have turned that on its head for those on the SV tariff.

• For standard variable tariffs: Under the current energy price cap, prepayment rates are slightly cheaper than direct debit rates. This is due to a government-led change that removed the "prepayment premium". 

A fix would likely be cheaper if available to the OP.

A govt led change that moved the prepay premium onto other payment methds - via the levelisation allowance - positive on DD and -VE on prepay.

Just yet another one of the many ways - the govt uses energy bills as a taxation proxy - like the policy costs - up £58 / 36% in last 18 months.

Bendo

Scot_39 said:

Ayr_Rage said:

Heedtheadvice said:

Nevertheless pay as you go is probably the most expensive way of paying for what you use. 

I think the recent changes have turned that on its head for those on the SV tariff.

• For standard variable tariffs: Under the current energy price cap, prepayment rates are slightly cheaper than direct debit rates. This is due to a government-led change that removed the "prepayment premium". 

A fix would likely be cheaper if available to the OP.

A govt led change that moved the prepay premium onto other payment methds - via the levelisation allowance - positive on DD and -VE on prepay.

Just yet another one of the many ways - the govt uses energy bills as a taxation proxy - like the policy costs - up £58 / 36% in last 18 months.

I thought it was a good example of the govt addressing the inherent unfairness of the less well off effectively being forced to pay more than those more well off, but what do I know. 

mmmmikey

Bendo said:

Scot_39 said:

Ayr_Rage said:

Heedtheadvice said:

Nevertheless pay as you go is probably the most expensive way of paying for what you use. 

I think the recent changes have turned that on its head for those on the SV tariff.

• For standard variable tariffs: Under the current energy price cap, prepayment rates are slightly cheaper than direct debit rates. This is due to a government-led change that removed the "prepayment premium". 

A fix would likely be cheaper if available to the OP.

A govt led change that moved the prepay premium onto other payment methds - via the levelisation allowance - positive on DD and -VE on prepay.

Just yet another one of the many ways - the govt uses energy bills as a taxation proxy - like the policy costs - up £58 / 36% in last 18 months.

I thought it was a good example of the govt addressing the inherent unfairness of the less well off effectively being forced to pay more than those more well off, but what do I know. 

Well yes, but every silver lining has a cloud and every policy is an opportunity to bash someone, you just have to be prepared to look for it. Personally, I prefer to spend my time looking for ways to save money (like you, I think?) which seems appropriate given that this is a moneysavingexpert site. But each to their own....

Ildhund

Bendo said:
... the inherent unfairness of the less well off effectively being forced to pay more than those more well off ...

Before 'levelization' was invented, it was a common perception that anyone with a prepayment meter must be poor and pitiful, hounded by heartless suppliers. Some of them probably were, but nowadays there are undoubtedly many smart-metered customers who embrace the savings offered by PAYG tariffs. It's so easy to set up a standing order to take the hassle out of topping up that I wonder if people fight shy of a switch to prepayment solely because of the taint @Bendo hints at. 

Scot_39

Bendo said:

Scot_39 said:

Ayr_Rage said:

Heedtheadvice said:

Nevertheless pay as you go is probably the most expensive way of paying for what you use. 

I think the recent changes have turned that on its head for those on the SV tariff.

• For standard variable tariffs: Under the current energy price cap, prepayment rates are slightly cheaper than direct debit rates. This is due to a government-led change that removed the "prepayment premium". 

A fix would likely be cheaper if available to the OP.

A govt led change that moved the prepay premium onto other payment methds - via the levelisation allowance - positive on DD and -VE on prepay.

Just yet another one of the many ways - the govt uses energy bills as a taxation proxy - like the policy costs - up £58 / 36% in last 18 months.

I thought it was a good example of the govt addressing the inherent unfairness of the less well off effectively being forced to pay more than those more well off, but what do I know. 

And that again - helping the poor - is a social policy decision - and more suited to taxation - not others energy bills - regardless of the bill payers income or ability to pay.

And the costs of running traditional prepay meters - cards / keys / shop terminals etc - have traditionally been higher - so reflected in the costs.

Less so for smart prepay meters - and iirc one of the big 6 - used to have two different prepay rates on offer - smart and non smart to reflect those costs.

And no - not absolutely everyone on prepay is poor.  Some users here actually posted they had switched from DD to prepay - to get the cheaper rates - by choice.

So for instance - their could be folk out their getting WHD £150 of their DD bills - but still paying towards the PP rates - for someone choosing the discounted prepay tariff - at least cheaper in many regions initially - post levelisation.  IIRC the regional average Prepay cap is still £48 cheaper than the average DD cap - and the levelisation allowance on prepay increased by another £10 in Oct 25 - to -£56 to keep it their.

£48 difference - cheaper - isnt level - that would be the same price.  

And it is about time it returned to just that - LEVEL not cheaper - and the govts and regulators like Ofgem stopped bending things to the demands of liberal left elites and populist crusaders like ML.

Which was the initial target iirc when EPG was kept for PP to roughly match DD total costs if not exact rates - as iirc calcs done at TDCV - for first 9 months.

PS

If the poor on benefits cannot afford their bills - increase benefits - or better yet stop loading bills for everyone -- including the poor in the first place - with literally £100s of pounds of social (now £215), debt costs (was £50) and rapidly rising net zero costs - forecast to hit an extra £150 by 2030 - largely on electric - per domestic consumer - in todays / yesterday's press and of course tax in the form of VAT.

Have a look at the cap breakdown - and see just how some of those not directly related costs are adding to our bills. It's woeful.

https://www.ofgem.gov.uk/sites/default/files/2025-08/summary-of-changes-to-energy-price-cap-1-october-to-31-december-2025.pdf

Scot_39

mmmmikey said:

Bendo said:

Scot_39 said:

Ayr_Rage said:

Heedtheadvice said:

Nevertheless pay as you go is probably the most expensive way of paying for what you use. 

I think the recent changes have turned that on its head for those on the SV tariff.

• For standard variable tariffs: Under the current energy price cap, prepayment rates are slightly cheaper than direct debit rates. This is due to a government-led change that removed the "prepayment premium". 

A fix would likely be cheaper if available to the OP.

A govt led change that moved the prepay premium onto other payment methds - via the levelisation allowance - positive on DD and -VE on prepay.

Just yet another one of the many ways - the govt uses energy bills as a taxation proxy - like the policy costs - up £58 / 36% in last 18 months.

I thought it was a good example of the govt addressing the inherent unfairness of the less well off effectively being forced to pay more than those more well off, but what do I know. 

Well yes, but every silver lining has a cloud and every policy is an opportunity to bash someone, you just have to be prepared to look for it. Personally, I prefer to spend my time looking for ways to save money (like you, I think?) which seems appropriate given that this is a moneysavingexpert site. But each to their own....

Prepay levilsation on DD cap increased by £2 in October to £10 - no doubt to pay for the £10 additional reduction to -£56 on the much higher operating costs estimates under prepay.

So it isnt saving the majority - who pay by DD - anything right now.

Scrap levelisation - the DD cap drops that £10.

Small compared to all the other non energy costs - like policy, debt etc - but all these small things add up over time.  So like the core policy costs - up £58 / 36% in 18 months - like the special debt allowance £28 now hidden - continue to add to bills and so now are significant.

Edit - and with the new JAN 26 cap up another £21 - so thats £79 - 50% in 21 months

And far from levelling bills - it amongst other differentials - makes the prepay cheaper - £48 cheaper - at cap TDCVs.

So why is it being maintained ?

Qyburn

1993j said:

What do you pay? We are in a 3 bed house and there is 2 of us 

Last monthly bill came to 10.8p/kWh