Prepayment
Standard credit
Which is cheaper?
Check the quote assumptions
Monthly Direct Debit
With Direct Debit, the supplier normally collects a regular amount from your bank account. The payment may be smoothed across the year, so the amount collected each month can differ from that month’s actual energy usage. Keep an eye on account credit and debit balances.
Prepayment
Prepayment customers pay for energy before using it, usually through a smart prepayment meter or by topping up. Tariff structures and price-cap rates can differ from Direct Debit. If you are considering a switch, make sure the new supplier supports your meter and preferred payment arrangement.
Standard credit
Standard credit generally means paying after receiving a bill rather than by automatic Direct Debit. Ofgem publishes separate cap rates by payment method, so a headline quote based on Direct Debit may not represent the cost if you intend to pay by standard credit.
Which is cheaper?
There is no single answer that applies to every tariff and household. Compare the actual rates offered for the same postcode, fuel and meter type. Also consider budgeting preference and convenience, not just the unit rate.
Check the quote assumptions
Supplier calculators may default to Direct Debit. Before accepting a quote, verify the payment method shown in the tariff summary. A fair comparison needs the same assumptions on both your current and proposed tariff.
Practical household checks
If cash flow is important, look beyond the annual estimate. Direct Debit may smooth payments through the year, while prepayment requires credit before use. Check emergency credit rules, top-up access, debt repayment settings and whether changing payment method affects the tariff you were quoted.
Why payment method changes comparisons
Suppliers may price Direct Debit, standard credit and prepayment differently because the collection costs and regulatory treatment differ. Compare like with like: a Direct Debit quote should not be judged against a prepayment figure without accounting for the payment-method difference.
Supplier tariffs, price-cap rates and referral campaigns can change. Check live official information before making a switching decision.
