Is Prepayment Energy Still More Expensive in 2026?
Not always — but many households still overpay.
Prepayment energy (also called PAYG – Pay As You Go) used to be significantly more expensive than standard credit tariffs. Thanks to Ofgem reforms and tighter regulation, that gap has narrowed.
However, the cheapest energy for prepayment meters still depends on:
Regional pricing variations affect prepayment tariffs differently.
How much energy you use determines which tariff structure is cheapest.
Smart vs traditional meters access different tariff options.
Households that actively compare prepayment tariffs can still save £150–£300 per year.
What Is the Cheapest Energy for Prepayment Meters?
There is no single cheapest prepayment tariff for everyone.
The cheapest option is the tariff with the lowest total annual cost for your home, including:
Unit rates (p/kWh)
Price per kilowatt-hour of energy used.
Standing charges
Daily fixed costs regardless of usage.
Regional network costs
Vary by location and distribution network.
Suppliers price prepayment energy differently across the UK, which is why postcode-based comparison is essential.
👉 The cheapest PAYG deal in London may not be the cheapest in Manchester, Birmingham, or Leeds.
Smart Prepayment vs Traditional PAYG: Which Is Cheaper?
- App-based or online top-ups
- Easier tariff access
- Better usage visibility
- Often more competitive pricing
- Fewer tariff options
- Physical top-ups required
- Still protected by the PAYG price cap
Upgrading to a smart meter can sometimes unlock cheaper PAYG tariffs — but it's not required to save money.
Cheapest Prepayment Electricity Tariffs
Electricity costs make up the largest share of PAYG bills.
To find the cheapest prepayment electricity tariff, compare:
Unit rate (p/kWh)
The price per kilowatt-hour of electricity used.
Standing charge (daily cost)
Fixed daily charge regardless of usage.
Emergency credit availability
Buffer for when you run out of credit.
Smart prepayment meters often unlock better tariff access with online and app-based top-ups.
Prepayment Energy and the Price Cap
Prepayment energy tariffs are protected by a separate PAYG energy price cap, set by Ofgem.
Cap Protection
The cap limits unit rates and standing charges.
Not Total Bill
It does not cap your total bill.
Regional Variation
Prices still vary by region.
Some credit meter fixed tariffs are cheaper than PAYG deals — but PAYG customers still benefit significantly from comparing.
How to Find the Cheapest Prepayment Energy Deal
Enter your postcode
Select prepayment meter
Choose gas, electricity, or dual fuel
Enter estimated usage (if available)
Compare total annual costs
Switch if savings are available
UtilityKing ranks tariffs by real annual cost, not headline rates.
Common Myths About Cheap Prepayment Energy
→ False. Comparison can uncover cheaper tariffs.
→ You usually can.
→ Smart meters support both credit and PAYG tariffs.
There is no universal cheapest PAYG tariff — but there is a cheapest option for your home.
Find Your Cheapest Prepayment Deal
In 2026, prepayment customers who compare avoid overpaying, gain better control of costs, and often reduce bills significantly.
Contact UsOfgem Protected • No Supply Interruption • Prepayment Specialists