Does it cost to switch from prepayment to credit meter?

The bigger obstacles are conditions rather than fees. A supplier will likely want the account debt-free and may ask for a credit check³. If you owe more than £500 for gas or £500 for electricity to your current supplier, switching is blocked until that is dealt with⁴. Renters need the landlord's permission because the meter is a physical change to the property³.

What changes is the payment model. A prepayment meter requires you to pay for energy before you use it, typically by key, card, online or phone¹. A credit meter bills you after use, which opens up the wider range of deals that standard credit customers can choose from¹.

Switching from prepayment to credit: what it costs

The direct answer is that the change of payment method is normally free. Independent guidance states plainly that none of the bigger suppliers charge to change prepayment meters over to credit meters¹. That covers the administrative switch and, on a smart meter, the remote change of mode.

Costs appear in three places. First, a non-smart credit meter: if you want a prepayment meter replaced with a non-smart credit meter rather than a smart one, the supplier might ask you to pay for it². Second, an early switch charge: a supplier might charge if you move to a new supplier within 12 months of the meter being fitted, even where it was fitted for free². Third, the meter move itself in a rented property, where the tenant is almost certainly expected to pay the cost unless the landlord wants the move as part of a renovation or improvement¹⁴.

There is also a running-cost dimension that sits behind the question. Prepayment customers have historically paid more: a Welsh Government statement records that those reliant on pre-payment meters pay a more expensive tariff compared to standard credit meters¹⁵, and independent guidance says prepayment is usually more expensive than paying by monthly direct debit¹⁶. One guide notes that as of April 2024 those on prepayment meters would pay slightly less for their energy than those on credit meters, a reversal driven by the prepayment price cap³. The direction of the price difference has moved between periods, so the standing charge and unit rate on the specific tariff matter more than the payment label.

For a household's energy independence, the switch changes who carries the timing risk. Prepay means the household funds energy before use and can be cut off by an empty meter; credit means the supplier carries the cost until the bill arrives, in exchange for a credit relationship and the possibility of debt. Neither removes dependence on the grid or a supplier.

How a smart meter changes the switch

A smart meter turns the prepayment to credit change into a software event. Smart Energy GB states that with a smart meter you can switch from prepayment to credit without needing a new meter installed¹². The same source notes that suppliers can switch consumers from credit to prepayment mode without the cost of a new meter being added to existing debt¹².

The mechanism is that smart meters work in both credit and prepay modes¹⁷. All smart meters can be switched between prepay and credit mode, so anyone eligible for a smart meter is eligible for a prepay meter¹⁸. Independent guidance describes the practical effect: if you have a smart prepayment meter, it is usually possible to change how you pay without getting a new meter, and the change is done remotely¹⁹. Smart DCC, which runs the national network, describes switching from an existing gas or electricity prepay meter to a smart credit meter as straightforward for customers who pay their supplier directly⁴.

In prepayment mode a smart meter can add credit automatically or without a visit to a shop²⁰. That matters for the independence picture: a smart prepay meter reduces the dependence on a physical top-up point, but it does not remove the dependence on the supplier's systems, the communications network or the app or in-home display used to check balance. A credit mode smart meter removes the top-up step entirely but keeps the meter, the supplier and the network in the loop.

How to apply to your supplier

The application goes to the supplier that bills you. Smart DCC describes the route from an existing gas or electricity prepay meter to a smart credit meter as straightforward for customers who pay their supplier directly⁴. The supplier decides what evidence it needs: independent guidance says it may require proof of address and/or a credit check²¹.

A practical sequence:

1. Check the account balance and any debt owed to the current supplier.
2. Contact the supplier and ask for the change from prepayment to credit.
3. Provide whatever the supplier asks for, which may include proof of address or a credit check²¹.
4. If the meter is smart, the supplier changes the mode remotely¹².
5. If the meter is not smart, the supplier arranges a meter change, which may be free or chargeable depending on the meter type².

Where it is not safe and practical for a household to remain on prepayment, independent guidance says the supplier should move the customer to paying by credit, meaning payment after use²². That is a safety and practicality route rather than a commercial one, and it sits alongside the ordinary application process.

The reverse direction is regulated. Suppliers can install a prepayment meter under warrant or remotely switch an existing smart meter to prepayment mode⁹. Ofgem rules require £30 credit per meter on all warrant installations and remote switches⁹, and compensation of £1,000 applies for inappropriate installation, switch or use of a prepayment meter¹¹. A code of practice on involuntary prepayment installations sets out the protections²³. For heat network customers, official guidance requires that where a supplier switches an existing supply meter to prepayment mode without consent, the consumer receives prepayment meter credit unless that is technically infeasible or outside the supplier's control²⁵.

Renters and landlord permission

For renters the meter is part of the property, so permission comes first. Independent guidance states that renters need the landlord's permission to change the meter³. A separate guide on moving a meter puts it more broadly: in most cases you need the landlord's permission to move a meter, and you will almost certainly be expected to pay the cost unless the landlord wants the move as part of a renovation or improvement¹⁴.

Permission and payment rights are separate things. Tenants who are responsible for paying the bills have the right to change payment method, and being on a prepayment meter does not prevent switching tariff or supplier⁷. Independent guidance on switching as a tenant covers the same ground²⁶. So a renter who pays the supplier directly can pursue the change, but should settle the property question with the landlord before asking the supplier to book work.

Where a supplier wants to install prepayment in a tenanted property, it might install a smart meter in prepayment mode, or switch an existing smart meter to prepayment mode²⁶. The involuntary installation rules and the £30 credit per meter apply here too⁹.

For the household's independence, renting adds a layer of dependence that no meter choice removes: the landlord's consent, and in many cases the tenant's liability for the cost of the change. A smart meter softens this because the mode can be changed without new hardware, which also means the meter does not have to be swapped between tenancies¹⁷.

What a credit meter means for how you pay

A prepayment meter is defined by paying before use. Independent guidance describes it as a meter that requires you to pre-pay for your energy before you use it¹, and as paying on a pay-as-you-go basis, usually with a key, smart card, online or over the phone⁷. Ofgem's own description is payment in advance rather than after use⁸, and one guide notes the key card that has to be topped up with credit⁶.

A credit meter reverses that: energy is used first and billed afterwards. The practical consequences are:

• More choice of deals. Those on standard credit meters will likely have more choice in terms of deals to switch to than those on prepayment meters¹.
• No top-up step, so no risk of self-disconnection from an empty meter.
• A credit relationship with the supplier, which is why a credit check may be required³.
• Debt can build, and debt from a credit meter account may be transferred onto a prepayment meter by the energy company, with automatic repayments taken each time you top up²⁷.

That last point is the trade-off in plain terms. Moving to credit removes the top-up discipline and the immediate cut-off risk, but it creates the possibility of arrears, and arrears can later be recovered through a prepayment meter with automatic deductions. Once debt on the account is settled, the supplier may be able to change the prepayment meter to a credit meter¹⁹.

For energy independence, a credit meter is a shift in who holds the risk, not a step off the grid. The household still depends on the supplier for billing, on the meter for measurement and, where the meter is smart, on the communications network and any app or in-home display used to track use. What the household gains is optionality: a wider set of tariffs, including time-of-use products that reward shifting load, and no dependence on a top-up channel. What it gives up is the hard budget ceiling that prepayment enforces.