Types of meters

There are currently 5 different types of electricity meter in the UK:

• Standard meter (the most common and show energy use as kWh)
• Economy 7/ variable rate (like standard but show different readings for day and night usage – can have cheaper use for 7 hours at night)
• Prepayment (need to ‘top up’ before use)
• Economy 10 (like standard but can help you pay less if you energy at 10 hour’s worth of ‘off peak’ times)
• Smart (smart technology explaining how and when you have used energy). There are targets for energy providers to roll these out across all households within the next few years. After issues with SMET1, a new generation meter SMET2 has started to be rolled out.

There are currently 2 different types of gas meter in the UK:

• Credit meter
• Prepayment meter

Types of water meter

• Standard meter
• Smart meter

Advantages and Disadvantages for meter types

Prepayment meters

Advantages:

• A lot of people like being in control of how much and how often they top up.
• The meter stops working when it runs out of money, so it is harder to fall into debt. This could help individuals to remember patterns and notice fuel consumption habits.
• The meter screen tells households their remaining balance.
• Customers don’t get given bills as they pay in advance.
• Prepayment meters will have an ‘Emergency Credit’ facility so individuals can put a set amount of extra credit in just in case they run out of their pre-paid credit, so they have time to top-up the meter before losing supply.
• There may be a ‘friendly credit’ or ‘no-disconnect’ mode, meaning at certain times of the day/night where it may be really important to have energy individuals will not lose supply even if they have run out of money/friendly credit.
• Customers can use the prepayment meter to repay any outstanding money owed. Payments are spread over a time period that suits the customer and is something they have agreed. Payments are interest-free.

Disadvantages:

• Topping up at a local newsagent, petrol station or supermarket can be very inconvenient (especially when it’s cold/late and the services are closed).
• Prepayment meters are more expensive.
• If a consumer’s prepayment meter has run out of credit and their supply is off, to restore the supply they will need to access the meter directly which may be positioned in an inconvenient location.
• The supply will turn off if the prepayment meter runs out of credit outside of ‘friendly credit’ hours, and the ‘emergency credit’ has been used or has not been activated. It may not be possible to restore the supply until the meter is topped-up again and is in positive credit.
  • If a prepayment meter has run out of credit and the supply is off, the customer may need to repay any ‘emergency credit’, ‘friendly credit’ or any outstanding amount owed, before the supply will come back on. The customer may need to account for any debt repayment plan that has been agreed. This could mean needing to top-up a bit more than they usually would so this may affect budgeting.
  • Energy usage will almost certainly increase during winter months, meaning the weekly top-ups would also have to increase. When the customer ‘pays-as-you-go’ this may be even more noticeable and have a greater impact on their daily and weekly budgeting. It may help to spread out payments evenly over the year to build up credit during the summer months, ready for the winter.
• If the customer leaves home for several days, they must remember to charge their key or card, and to credit their meter. This is because credit is used to pay for a daily standing charge (on selected tariffs) and any debt repayments – so if customers don’t charge their meter enough before going away, appliances that they may want to have on all the time (for example, freezers) may switch off.

Some people are concerned about getting a standard meter as do not want a direct debit out of their bank account, which they cannot change/control if there is a drop in income. To counteract this, some energy providers offer a standing order service so that the individual can control the payments instead of the energy provider. (https://www.economyenergy.co.uk/customer-support/faqs/categories/general-information/general-faqs/what-are-the-advantages-and-disadvantages-of-prepayment-meters/)

Smart metres

Smart meters are recommended due to energy efficiency and advanced technology. They are being rolled out by all energy providers during the next couple of years

Advantages:

• No one has to come and read the meter
• It is accurate – no more estimates
• Individuals can use energy more efficiently and in time, from more renewable energy sources
• The Smart meter can help people to work out what they’re spending and adjust their habits in order to lower their electricity bills
• Reduces the number of blackouts and system-wide electricity failures due to improved technology
• Prevents the need to spend money building new power plants that produce greenhouse gases that substantially creates pollution that creates health risks and increases global warming
• Reduces pollution created by vehicles driven by meter readers

Disadvantages:

• It takes time to change the meters for all households and train people to develop them
• Some people don’t like change and energy companies knowing what they are spending on
• It takes away the job of those who read meters
• If there is poor wifi signal, the meter may not work. There were issues with the original SMET1 meter not working when switching providers, although the newer generation Smart meter SMET2 is believed to be more effective.
• Not all energy providers are providing Smart meters for all areas yet

How to choose a meter?

Checklist for determining the most appropriate payment method:

• Is a prepayment meter safe and reasonably practicable? It is not if disconnection has serious consequences e.g. rely on medical equipment that needs electricity, has an illness made worse by living in a cold home.
• Does the consumer owe a debt to their energy supplier? If so, what is the most appropriate method for them to repay this debt taking into account their ability to pay? If not, do they need a prepayment meter?
• Which payment method makes it easiest for the consumer to manage their money?
• Could the consumer access a cheaper tariff?

Citizen’s Advice Good Practise guide recommends that energy suppliers never install a prepayment meter to customers with a history of social phobia, agoraphobia or any other mental health condition where they may not be able to leave the house.