What Are Prepayment Energy Tariffs?
Prepayment energy tariffs (also known as PAYG – Pay As You Go) require you to pay for gas and electricity before you use it. You top up your meter using:
Traditional prepayment method using physical keys or cards at local top-up points.
Modern digital top-up through smartphone apps or online portals.
Wide network of local shops and convenience stores for top-ups.
Prepayment tariffs are common among renters, students, and households managing tight budgets.
Are Prepayment Energy Tariffs More Expensive?
They used to be — but that has changed.
Since reforms and Ofgem intervention:
- Prepayment tariffs are now protected by a separate energy price cap
- The gap between prepayment and credit tariffs has narrowed significantly
- Some prepayment deals are now competitive with standard tariffs
However, not all prepayment tariffs are priced the same, which is why comparison still matters.
Why You Should Compare Prepayment Energy Tariffs
Many households on prepayment meters are still:
- On default supplier tariffs
- Paying higher standing charges than necessary
- Missing out on cheaper PAYG deals
By comparing prepayment energy tariffs in 2026, households can often save £150–£300 per year without changing meters.
Compare Prepayment Electricity Tariffs UK
When comparing prepayment electricity tariffs, look at:
Unit rate (p/kWh)
The price per kilowatt-hour of electricity used.
Standing charge
Daily fixed cost regardless of usage.
Emergency credit allowance
Buffer for when you run out of credit.
Smart prepayment meters often offer:
- Lower hassle
- App-based top-ups
- More competitive pricing
Smart Prepayment Meters vs Traditional PAYG
- Top up online or via app
- Better usage tracking
- Easier switching
- Often better tariff access
- Physical top-ups required
- Fewer tariff options
- Still widely supported
In many cases, switching supplier or requesting a meter upgrade can reduce costs.
Can You Switch Prepayment Energy Supplier?
Yes.
You can switch prepayment supplier if:
- You don't owe debt to your current supplier (or it's below transfer limits)
- Your meter is compatible
- You pass basic eligibility checks
Switching is safe and does not interrupt supply.
Prepayment Tariffs and the Energy Price Cap
Prepayment tariffs are protected by a specific PAYG price cap, separate from standard variable tariffs.
The cap limits unit rates and standing charges
It does not cap your total spend
Prices still vary by region
Many competitive fixed tariffs (credit meters) are cheaper than PAYG — but PAYG users still benefit from comparison.
How to Compare Prepayment Energy Tariffs with UtilityKing
Enter your postcode
Select prepayment meter
Choose gas, electricity, or dual fuel
Enter estimated usage (if known)
Compare total annual cost
Switch if savings are available
You'll see only prepayment-compatible tariffs, ranked by price.
Common Myths About Prepayment Energy
→ Not anymore — comparison makes a big difference.
→ You can, in most cases.
→ Smart meters support both credit and prepayment modes.
Prepayment energy customers are no longer stuck with expensive deals — but only if they compare.
Find Your Best Prepayment Deal
In 2026, the cheapest PAYG tariffs depend on postcode, usage, and meter type. Compare now to see if you can pay less without changing how you pay.
Contact UsOfgem Protected • No Supply Interruption • Secure Switching