MORE than four million people with a prepayment meter need to complete a vital check before they turn their heating off.
As the weather improves many of us will have decided now is the time to switch off our central heating for the warmer months.
But those with a prepayment meter need to be careful as they could find themselves in debt when they come to turn their heating on again.
This is because you still need to pay a daily standing charge, which is a fee for being connected to the grid.
You have to pay it even if you are not currently using any gas or electricity.
The amount of standing charge you must pay depends on where you live, what tariff you are on and supplier you have.
On average, prepayment meter customers pay an electricity standing charge of 26p per kWh and a gas charge of 6.78p per kWh.
But if you do not have any credit on your meter then you will have to pay back all the standing charges you owe when you next top up.
This could mean you do not have enough money on your meter to pay for the electricity and gas you want to use.
For example, if you owe £15 in standing charges but top up your meter by £20 then the meter would take what you owe and you would be left with just £5.
This could mean you are forced to top up again the next day.
Or if you have not put enough money in your account then it is possible that as a last resort your supply could be disconnected.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”Standing charges continue to rise DESPITE gas and electricity costs falling – what it means for you and how to soften the blow” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6349879919112″ video_ids=”” width=”640px”]Alex Belsham-Harris, Head of Energy Policy at Citizens Advice, said it’s important to keep your meter topped up, even in the summer.
He said: “When you’re on a prepayment meter, this charge builds up as debt if you don’t have credit to pay it.
“We recommend keeping your prepayment meter topped up even when not using your heating, like during warmer months, as this avoids building up a large standing charge debt, which you may struggle to pay back when you next top up your meter.”
How do I top up my prepayment meter?
With a prepayment meter you pay for the energy you want to use in advance, which can help you keep on top of your spending.
Your meter will tell you how much credit you have on your account.
This balance will fall when you use the energy you have paid for.
Your meter will warn you when your balance is low, which should give you time to top it up before its balance falls to zero.
Your supplier should have given you a card or key which can be used to top up your energy meter when it was installed.
Take the card or key to a Payzone, PayPoint or Post Office outlet.
Simply give them the key, along with the money you want to top up.
The minimum payment is £1 and you have to top up in full pounds.
Once the credit is applied to your card or key you simply insert it into your meter and add the credit.
What should I do if I am struggling to top up?
If you have a prepayment meter and are struggling to keep on top of your payments then there is plenty of help out there.
Ben Gallizzi, energy expert at Uswitch explains: “To avoid falling into debt, try to get into the habit of topping up regularly with enough money to cover your average monthly bill.
“If you’re struggling to pay your energy bill, get in touch with your suppliers as soon as possible, and they should be able to offer you advice and support.”
Several energy firms have grant schemes available to customers who are struggling to cover their bills.
The criteria varies depending on your supplier and the amount you can get depends on your financial circumstances.
For example, British Gas customers struggling to pay their energy bills can get grants worth up to £1,500.
EDF, E.ON and Octopus Energy also offer grants to struggling customers.
If you are with any of these energy firms, then speak to their customer service team or check their websites for more information.