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Practical tips to help you improve your credit rating and avoid expensive high interest loans

8 Ways to Avoid the Pre-Pay Energy Meter Trap

An Image of a Row of Council Houses

An image of an electricity meterPeople on pre-payment gas and electricity meters pay on average £226 more than the cheapest direct debit tariff according to the Citizens Advice Bureau.

Many people with pre-payment meters are already struggling with debt and tend to be low-income households.

In the worst case, Co-Operative Energy had a gap of £405 between those paying by direct debit and those with pre-payment meters (although they say they are now cutting their rates to reduce this!)

For more on this please check out – Prepay meters hit the poorest hardest – Citizens Advice


So to avoid the pre-pay energy meter trap consider the following energy-saving tips so that you can afford to pay direct debit and enjoy cheaper energy:

An Image of a home energy meter

1. Save energy – turn electrical items off when they are not being used;  TVs on standby use a surprising amount of power.

2. Benefits – Make sure you are receiving all the benefits you are entitled to.  You might, for example, be eligible for a cold weather payment at certain times of the year.

3. Compare energy prices – try comparison websites to make sure you’re getting the best possible deal. It is worth the time to save some money

4. Apply for a grant – you could be eligible for an energy efficiency grant to help with home insulation etc.

5. Loft insulation – if you don’t have loft insulation you are literally sending your money out through the roof.

An image of a pre-pay energy meter6. Energy monitor – if your bills seem to be growing to try investing in an energy monitor to see where you might be able to reduce your energy use.

7. Energy efficient appliances – if you’re buying new appliances try to choose ones with a better energy rating.  Items including washing machines, fridges and freezers are all rated now.


Direct Debit – If you can, pay your bills by direct debit, most suppliers will give you a discount for this.  You might also be able to use a flexible payments scheme.  Contact your supplier for more information.


Top Tip – reduce the temperature of your thermostat by just one degree can reduce your bills by 10%.  If you are at home for most of the day it’s better to put a jumper on that turn the heating up.


If you are experiencing short-term financial difficulties try our 7 Tips to avoid switching to a pre-pay energy meter.


What We Do

You have probably seen that we are online guarantor loans compare website.

We have written this post as we passionately believe that saving money should be the answer rather than borrowing more, but in reality, realise there are times when this is not possible.

So we specialise in guarantor loans, generally the least expensive loan option if you have a poor credit rating. To find out more see our FAQs.



Clare McDonald
Clare McDonald
As a mother of two, Clare knows the importance of being careful with money, so writes posts from personal experience.Clare also loves to find great deals, so shares her finding here.

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