Prepayment meters: what are your rights, and can a supplier force one on you?

A supplier can only move you to prepayment without your agreement as a last resort for debt, and never in some households, such as those with a child under 2. If you're on prepayment, you're entitled to emergency credit, and you can ask to switch back to credit once any debt is paid.

These rules apply in England, Scotland and Wales and are part of every supplier's licence, so breaking them can lead to Ofgem enforcement and fines.

Can a supplier fit a prepayment meter without your consent?

Yes, but only in limited cases. An "involuntary" prepayment meter means one fitted under a warrant, or a smart meter switched to prepayment mode remotely, to recover a debt without your agreement. Ofgem's rules say this should be a last resort.

Since 8 November 2023, Ofgem's Code of Practice on involuntary prepayment has been a licence condition for all suppliers and their contractors. Before fitting a meter or switching yours remotely, a supplier must:

• make at least 10 attempts to contact you
• carry out a site welfare visit to check whether prepayment is safe for your household
• have the lead representative wear an audio or body camera at warrant installations and welfare visits, so the visit can be checked later
• give £30 of credit per meter (or an equivalent period without disconnection) when it installs under warrant or switches a meter remotely

Who can never be moved to prepayment without agreeing?

Ofgem's rules say there must be no involuntary installation in these households:

• anyone who needs a continuous supply for health reasons, including people who depend on powered medical equipment
• homes where everyone is 75 or over and there's no other support in the house (this was lowered from 85)
• homes with a child under 2
• anyone with a severe health condition, including terminal illness or a medical need for a warm home
• homes where nobody can top up the meter because of a physical or mental condition

If any of these applies to you, tell your supplier in writing and ask to join its Priority Services Register. Citizens Advice says that in these situations your supplier should move you off prepayment.

Does prepayment cost more than paying by Direct Debit?

Not under the current price cap. For 1 October to 31 December 2026, Ofgem's typical yearly bill for a home using 2,500 kWh of electricity and 9,500 kWh of gas is:

That makes prepayment about £45 a year cheaper than Direct Debit at typical use. Your own cost depends on how much you use, where you live and your meter. The price cap covers prepayment customers on default tariffs, and the 0% VAT on electricity until 31 March 2027 applies to prepayment too. Our price cap guide has the rates, and the estimator gives a figure for a home like yours.

The bigger risk with prepayment isn't the price. It's running out of credit and going without heat or light.

What help must you get if your credit runs out?

Since 15 December 2020, suppliers must offer prepayment customers:

• Emergency credit: a fixed amount that kicks in when your meter runs low or empty, so your supply carries on.
• Friendly hours credit: credit that keeps you supplied overnight, at weekends and on public holidays, when you may not be able to top up.
• Additional support credit: extra credit for people in vulnerable circumstances who have used the other options, to give time to arrange a top-up. It covers people who can't get out to top up.

You normally repay this credit at your next top-up. If that's a struggle, Ofgem says your supplier should look at what you can afford and agree a repayment rate you can manage. Suppliers must also watch for customers who are cutting themselves off ("self-disconnecting") or rationing energy, and offer help.

If you're running out of credit regularly, call your supplier before it happens. Ask about emergency credit, a lower debt repayment rate, and any hardship fund. Our guide to standing charges explains why your meter keeps taking money even when you're using little.

How do you switch from prepayment back to credit?

Ask your supplier. Citizens Advice explains how it works:

• A smart meter in prepayment mode can be switched to credit mode remotely, without a visit.
• An older prepayment meter can be replaced with a smart meter. You shouldn't have to pay for the installation. If you don't want a smart meter, ask your supplier what else it can offer.
• You may face a credit check or be asked for a deposit. Citizens Advice says a deposit should be reasonable, based on about three months' use for a home like yours, which is usually £150 to £300. You can ask to pay a deposit instead of a credit check.
• Suppliers usually won't move you to credit while you owe them money. Once the debt is cleared, they must switch you to credit or, if you'd rather stay on prepayment, reset the meter so you aren't overpaying.

Before the change, note your remaining credit (or any emergency credit you owe), take a final meter reading and photograph the meter. If you rent and pay the supplier directly, you don't need your landlord's permission, but tell them.

What if you were moved to prepayment wrongly?

Complain to your supplier in writing and say which rule you think was broken, for example that a child under 2 lives with you or no welfare visit took place. Ask for the meter to be switched back to credit and for compensation. Citizens Advice says people wrongly moved to prepayment between January 2022 and January 2023 may be owed compensation, and suppliers should write to those who are eligible.

If the supplier doesn't sort it out, you can take the complaint to the free Energy Ombudsman. Our energy rights guide explains how. Watch out for scams too: a genuine supplier won't ask for your PIN or password, so check any call using the contact details on the supplier's own website.

This is general information, not legal or financial advice.

What to do next

• Check whether anyone in your home fits a protected group, and tell your supplier in writing if so
• Ask to join your supplier's Priority Services Register if you or someone you live with is vulnerable
• Find out how emergency and friendly hours credit work on your meter before you need them
• If repayments are too high, ask your supplier for an affordable rate based on your budget
• Once any debt is cleared, ask to switch to credit mode (or have your meter reset)
• Take a meter reading and a photo before any change of meter or mode
• Complain in writing if you think a meter was fitted or switched wrongly, and go to the Energy Ombudsman if it isn't resolved
• Use the estimator to check what your energy should cost a year