The Future Of Pay As You Go (PAYG) Energy
Before I bought this house, it had been tenanted and because of the letters I’ve received since, I reckon that quite a few tenants skipped owing money to energy suppliers. Because of this, the house had a PAYG gas meter that used a key. I never used it for more than aa day or so, as the energy company I chose, replaced it with a normal one.
Using PAYG must be a nightmare for a family with problems, either monetary or organisational. So when I saw OVO Energy had brought in a PAYG system that worked on-line, I started following reports of the system.
Today I’ve picked up this comprehensive article from the Yorkshire Post. This is the first couple of paragraphs.
Thousands of Yorkshire customers who have been paying over the odds for their gas and electricity may be in for some relief – so long as they have a computer, email address and bank account.
British company Ovo Energy has just launched the UK’s first full-service, smart, pay-as-you-go (PAYG) energy platform, Smart PAYG+, which offers the cheapest pre-payment tariff in the country.
Eventually, this is how people with a computer, e-mail address and bank account will pay for PAYG energy.
OVO’s Smart PAYG+ system seems to be a very good design and will have applications outside of where the current key meters are used. OVO says this.
If you’re a prepayment energy customer, or even if you’re not, why not switch to OVO Smart PAYG energy? It takes away the hassle of paying for your gas and electricity. OVO gives you a choice of two ways to Pay As You Go.
I think that this technology will be used in some surprising places. I doubt I’ll be changing, but my energy use is rather erratic and sometimes I’m deep in credit with my energy supplier, who is OVO. PAYG would allow me to have a minimum credit at all times.
The Anonymous Widower 
Sounds a good idea for tenants of greedy landlords – we used to live in a rented flat wither a PAYG meter, over 30 years ago, and when we moved out into a house with a normal meter we were amazed at how much less electricity we used despite the size and number of appliances we now had.
Comment by nosnikrapzil | April 11, 2015 |
I have seen comments where people are going to use this system for a second home, that stays unoccupied for the winter.
It’s not just for tenants and I could see low energy using this type of system.
Comment by AnonW | April 11, 2015 |
I agree, it has lots of uses. It would be useful for small charitable and NFPs who need premises but use them infrequently as well.
Comment by nosnikrapzil | April 11, 2015 |
Due to the Government’s tariff simplification policy nearly all suppliers took the opportunity to make standing charges compulsory.
The result is much higher bills for low users.
“we used to live in a rented flat with a PAYG meter, over 30 years ago” those were coin-fed meters with tariffs set by owners. They were subject to theft and abuse causing losses to landlords. They were outlawed in the 1990s when energy costs started to rise as the unit fee was variable. The current PAYG meters are prepaid key cards topped up at Paypoint outlets at supplier tariffs.
“I could see low energy using this type of system” Prepaid is NOT suitable since the bulk of the cost is a standing charge. There is no longer a unit based option from any supplier.
“premises but use them infrequently” or “unoccupied for the winter”
There are now two options. Permanently disconnect the gas supply which is no longer a cheap by-product from North Sea oil and rely instead on Eco7 electric. That would save one set of standing charges.
Alternately with a credit meter switch to EbiCo who still offer a unit based tariff. With them if you use nothing you pay nothing.
There is confusion here about PAYG and prepayment.
The smart meter allows you to pay a monthly amount that varies with actual usage without needing to submit readings.
You were always able to pay actual usage typically quarterly by submitting readings.
People switched to monthly regular budgeting for convenience and it was cheaper all round.
The OVO system allows you to to up a key online without trekking to a paypoint. They also charge the same unit fee as credit meters so no premium.
PAYG variable monthly charges are not suitable for those who do not want their largest energy bills at Christmas.
PAYG is popular as energy companies have accumulated vast credit balances from their customers. The monthly budget payment is at the discretion of the customer. You do not have to accept an increase and you can demand a reduction with reimbursement at any time.
Comment by Aleks2cv | December 23, 2017 |