How do pre-pay electricity meters change their rates?

[Mottie]

As above. The previous tenant of 9 years in my workshop, unbeknown to me, had the normal electricity meter changed for a prepayment one. I have a key that I put money on at the post office. I've been back in there since 2014 and never bothered changing it back to a regular meter. It's not a smart meter so how does it change the daily/weekly standing charge and kWh unit price?

I looked it up the other day and found out how to check the rates by pressing the blue button - apparently I am paying £1.95 per week standing charge and 20.42p per kWh. I've just looked up my supplier and on a monthly DD it would be more expensive - £2.30 per week standing charge and 39.59 per kWh.

So, does it mean that unless someone comes round to adjust the rate, it will remain as it is?

 

[big-all]

not sure but suspect the key will act like a memory stick and update the meter as they are matched and cant be used anywhere else as far as i know
this will happen next time you top it up
but purely a guess based on lives experiences

also they will claw back a percentage off every amount you buy as in top up £20 perhaps £5 goes to arrears and £15 in credit but again just a guess

 

[Old Salt]

Any arrears are loaded onto the key and then a percentage deducted each time the key is charged.
Prepayment is fine if it helps to manage your budget but always get a new key when a tenant/property is changed. If the previous tenant had debt then you are paying it off for them.
I suspect it is currently cheaper as the rates wont reflect new charges coming in. But it depends on your supplier as well.

 

[Mottie]

Any arrears are loaded onto the key and then a percentage deducted each time the key is charged.
Prepayment is fine if it helps to manage your budget but always get a new key when a tenant/property is changed. If the previous tenant had debt then you are paying it off for them.
I suspect it is currently cheaper as the rates wont reflect new charges coming in. But it depends on your supplier as well.

Yeah, when I moved back in and phoned them up because my old tenant didn't leave me the key, British Gas had to send me a new key.

 

[mattylad]

The rates etc. are all dealt with at the machine that puts the units on the key.
i.e. yonks ago you put £10 on and it gave you 100 units.
Now that same £10 only gives you 75 units.

(All values given in this example are just random numbers plucked from the multiverse for an example and are not exact, true, nor can I provide links or references. )

So if you have a pre payment meter, it's the old type and not a smart one and if you can afford to, top it up with as much as you can afford to get electrickery and current prices before it all goes up more.

 

[flameport]

I've just looked up my supplier and on a monthly DD it would be more expensive - £2.30 per week standing charge and 39.59 per kWh.

Other suppliers are available - that is hideously expensive even including recent price increases and those applicable from April.

Key meters are going away, they will be replaced by smart meters and for prepayment it's done online or via a smartphone app.

 

[SUNRAY]

Any arrears are loaded onto the key and then a percentage deducted each time the key is charged.
Prepayment is fine if it helps to manage your budget but always get a new key when a tenant/property is changed. If the previous tenant had debt then you are paying it off for them.
I suspect it is currently cheaper as the rates wont reflect new charges coming in. But it depends on your supplier as well.

Changing the key will make no difference after it has been inserted in the meter the first time.

I may (could) be completely wrong but I believe the current rate is negotiated with the supplier each time the key is recharged and the debt deduction is done within the meter.

I've had debt issues when a tenant moved out and long protracted negotiotions with supplier resulted in a replacement key being supplied containing either credit for or a reset for the meter. I had to put credit on it before it would do anything but all of that showed as a credit balance on the meter.

IME there is generally a debt when tenants move out but it's usually minimal and not worth the effort get it sorted out and I clear it myself.

 

[johnny2007]

I've got a prepayment meter in my workshop.
It updates the rate when you next top up, so before prices go crazy, top up as much as you can and all your credit will be on the tariff of when you topped up.
This is because you're prepaying at the price of that day.
Ofgem confirmed this not long ago.

 

[SUNRAY]

I've got a prepayment meter in my workshop.
It updates the rate when you next top up, so before prices go crazy, top up as much as you can and all your credit will be on the tariff of when you topped up.
This is because you're prepaying at the price of that day.
Ofgem confirmed this not long ago.

Agreed.

 

[Mottie]

I've got a prepayment meter in my workshop.
It updates the rate when you next top up, so before prices go crazy, top up as much as you can and all your credit will be on the tariff of when you topped up.
This is because you're prepaying at the price of that day.
Ofgem confirmed this not long ago.

That's interesting. I may stick a couple of hundred quid on it and save a few Bob.

 

[johnny2007]

That's interesting. I may stick a couple of hundred quid on it and save a few Bob.

That's what i'll do tomorrow.
Thanks for reminding me

 

[Mottie]

I've got a prepayment meter in my workshop.
It updates the rate when you next top up, so before prices go crazy, top up as much as you can and all your credit will be on the tariff of when you topped up.
This is because you're prepaying at the price of that day.
Ofgem confirmed this not long ago.

Apparently Ofgem got it wrong. Apparently it will definitely NOT work with Scottish Power and E.on pre pay meters but definitely WILL work with British Gas. All will be confirmed tomorrow.
https://www.moneysavingexpert.com/n...g-the--top-up-prepay-meters-before-april--tr/

 

[johnny2007]

Apparently Ofgem got it wrong. Apparently it will definitely NOT work with Scottish Power and E.on pre pay meters but definitely WILL work with British Gas. All will be confirmed tomorrow.
https://www.moneysavingexpert.com/n...g-the--top-up-prepay-meters-before-april--tr/

Seemed too good to be true.
I wonder, how do they update the tariff remotely?
Mine is an ancient meter and it can only update info when you insert the card, so I thought.

 

[Mottie]

That's interesting. I may stick a couple of hundred quid on it and save a few Bob.

Well I loaded a few bob on it back in March. Just ran out today. Before I loaded the key up again, I checked the rates on the meter. It was £1.94 per week standing charge and 20.42 pence per Kw. After I put the key in it showed £2.68 per week standing charge and 34.8 pence per Kw. I suppose I better load it right up before the next hike.

 

[Old Salt]

If you are using a key meter it is the generally the most expensive way to obtain energy.