There’s good news and there’s bad news for those with a prepayment meter in their homes. The good news is that in April 2017, a price cap was set to prevent people from being charged extortionate fees, and this cap will save the average person around £80 a year. The bad news is that these price caps are still way above what you’d be paying on a normal tariff.
On this page we will look at who is the cheapest prepayment energy supplier, listing the best options that are currently available.
Firstly, what is prepayment energy?
As we’ve discussed in other resources, prepayment meters, which are sometimes referred to as key meters or card meters, are fixtures that allow you to pay for your gas and electricity on a pay-as-you-go plan. Many people who use these meters do so because they were not able to manage their monthly bills. Others prefer them, as it allows them to directly see their energy usage as it happens, and budget accordingly. More than four million UK homes are fitted with these meters, a large percentage of which are in rented properties, allowing landlords to step away from utility management. Some people even argue that not being tied into long term contracts makes them feel less stressed, as they can budget better – this is a common reason for low income earners and students to opt for prepayment meters.
Who is the cheapest prepayment energy supplier?
How much you pay, your cap and which suppliers are on offer to you depends on several factors, including your region, which means there’s no single cheapest supplier. For those on a prepayment meter, our advice will always be to switch to a credit meter and get regular bills, as you will pay a lot less for your energy, but this requires a credit check, no fuel debts and good money and energy management. It is possible that your energy supplier may force a prepayment meter on you if you have built large fuel arrears and owe them money.
Financial advice website money.co.uk recently revealed the 10 businesses that they felt competed for the title of ‘cheapest prepayment energy supplier’, based on their price, the associated savings and exit fees.
1. E 1 Year Fixed Price 2017 Smart.
Rate type: Fixed for 12 months
Average annual cost: £986
2. Spark Energy Spark Protected
Rate type: Fixed until June 2018
Average annual cost: £1000
3. Bristol Energy Standard Variable Tariff Paper Billing
Rate type: Variable
Average annual cost: £1010
4. EDF Energy Blue+Fixed Prepay
Rate type: Fixed until June 2018
Average annual cost: £1011
5. British Gas Standard
Rate type: Variable
Average annual cost: £1018
6. E 1 Year Fixed Price 2017
Rate type: Fixed for 12 months
Average annual cost: £1023
7. Ebico Energy Ebico Prepay
Rate type: Variable
Average annual cost: £1027
8. Robin Hood Energy Evergreen
Rate type: Variable
Average annual cost: £1027
9. Robin Hood Energy Evergreen Paper Bill
Rate type: Variable
Average annual cost: £1027
10. TOTO Energy TOTO PAYG Discount Variable Saver
Rate type: Fixed for 12 months
Average annual cost: £1037
From these ten cheapest prepayment energy supplier deals, the important thing to note when trying to save money is the ‘rate type’. With a fixed tariff, you pay the same rate every time, meaning the price per unit of your energy doesn’t change. With a variable tariff, if the price of energy drops, you save money, but if it rises, you must pay more per unit, so this option is riskier, but can pay dividends.
Now you know who is the cheapest prepayment energy supplier, want to know more about prepayment meters? Check out this guide.