As a letting agent, it’s important to be able to address tenants’ concerns about utilities, especially with the rising costs of energy and growing concerns around sustainability.

One concern that tenants may have is around the use of prepayment meters, particularly if your tenants have never used them before. This guide aims to give you the necessary information to support your tenants effectively.

Understanding Prepayment Meters

Prepayment meters allow users to pay for electricity and gas before they use it, offering a straightforward pay-as-you-go approach. This method can be useful for budgeting and preventing utility bill debt accumulation. Here’s a breakdown of how these meters work and their relevance to your role as a letting agent:

How They Work

A prepayment meter requires users to add credit before they can consume energy. If the tenants are responsible for paying for their energy bills, they will be responsible for keeping the meter topped up. Tenants can top up their meters via several methods, such as purchasing a top-up card at local shops, using a key, or, if they have a smart meter, making online payments. 

Once the meter is topped up, the energy supply continues until the credit is exhausted, or topped up again. When the credit runs out on the meter,  it will need to be topped up to maintain energy supply to the property. 

Smart Prepayment Meters

So, what is a smart prepay meter? Unlike traditional meters, which can only be credit or prepayment, smart meters can operate in either credit or prepayment modes. One of the benefits of smart meters for tenants who prepay for their energy is the ability to top up their prepayment meter online, removing the need to go to the shops to top-up. Smart meters also come with an in-home-display, which allows tenants to track their balance and monitor their energy usage more easily. This can help to prevent unexpectedly running out of credit. 

Addressing Tenant Concerns

As letting agents, you may encounter tenants who are unfamiliar with prepayment meters and have concerns about using them. Here’s how you can support and reassure them:

• Explain How They Work: Provide clear instructions on how to top up and monitor their energy usage.

• Moving in: If tenants are moving into a property with a prepayment meter, make sure they know in advance, so they can contact their new energy suppliers. Encourage them to set up a new account with their energy supplier, and not to use any existing accounts or cards, so they don’t accidentally take on any previous tenants’ debts.

• Switching Modes: Some tenants might want to move from prepayment to credit. It might be helpful to let them know that smart meters can switch between credit and prepay modes remotely, offering greater flexibility.

Who Is Responsible for Meters?

Technically, energy meters belong to the energy suppliers or meter operators, not landlords or tenants. This means that decisions about the type of meter (smart or traditional, credit or prepayment) are between the person who pays the bills and their energy supplier. 

Therefore, if tenants pay the energy bills for the property, and want to get a smart meter – or change from credit to prepayment or vice versa, they should contact their energy supplier. Landlords should be made aware of any changes, but Ofgem specifies that they cannot prevent tenants from changing meters without good reason.

It’s Important To Stay Informed

The energy system in Great Britain is always changing, with many new technologies and tariffs being introduced every year. As letting agents, staying informed about these changes and being able to provide accurate information will not only support your tenants but also enhance your service quality. By understanding the workings and benefits of prepayment meters, you can better assist your tenants in managing their energy usage effectively, addressing their concerns, and promoting energy efficiency.