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CHECK PAYG TARIFF PRICES TO SEE IF YOU COULD SAVE.
The only PAYG tariff that doesn’t charge you if you don’t use any energy, due to no standing charge. Instead, it provides a variable tariff that offers two unit rates - a cheaper Saver Rate automatically kicks in after you've used 2kWh of energy each day.
Pay as you go meters supply energy on a prepay basis, instead of paying by direct debit or on receipt of a bill.
PAYG energy has come a long way since the traditional ‘key card’ meters thanks to the smart meter rollout. You can choose to pay using the supplier’s app, website, over the phone, or at a physical PayPoint or Payzone point. Make sure you ask your supplier to install a smart meter to get the best prepay experience – all suppliers must install a smart meter if you ask for one.
To stay on supply, you’re responsible for topping up your credit.
Out of the three different ways to pay for energy (PAYG, Direct Debit, and paying when receiving a bill) PAYG and Direct Debit are usually equally the cheapest, based on the energy price cap.
Below are a few reasons why you might want to consider a prepayment meter for your home:
When you can see, you can save. Get improved visibility and control of your energy spend with a digital smart-display and app. Unlike a Direct Debit or estimated bill, you only pay for what you use and not a penny more.
If you find yourself with an energy debt to repay, one way to do it can be with a smart PAYG tariff. Each time you top-up, the supplier can take a small, pre-agreed amount to pay off your debt.
The flexibility of PAYG energy tariffs is often preferred by tenants. By prepaying, you don’t build up a debit or credit balance which makes life easier when it comes to moving in and out of properties. When leaving a property, any credit on a smart PAYG meter is paid back.
If you’re not always at home all day or you let a property that isn’t used all year - like student accommodation - choosing a Smart PAYG tariff with no standing charge could be sensible. If a tariff has a standing charge, you’ll pay a little amount each day even if you’re not using energy at the property.
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[1]Prepayment meter customers to pay less for energy from today, Gov.uk article. 1 July 2023