Prepay electricity lets you pay for power before you use it, similar to a pay-as-you-go mobile phone. But is it cheaper than traditional bill pay? In most cases, no—prepay typically costs more. Here's a detailed comparison to help you decide which option suits your situation.
How Prepay Electricity Works
With prepay (also called PAYG or pay-as-you-go), you top up credit before using electricity. When your credit runs out, your power can be reduced or cut off until you top up again.
Topping up: You add credit at shops (Payzone, Post Office), online, or through apps
Meter display: A special meter or in-home display shows your remaining credit
Usage: Credit depletes as you use electricity
Emergency credit: Most providers offer €5-€10 emergency credit when you run low
How Bill Pay Electricity Works
With bill pay (the traditional model), you use electricity first and receive a bill afterwards—typically every two months.
Usage: Use electricity freely
Billing: Receive a bill based on meter readings or estimates
Payment: Pay by direct debit, card, or bank transfer
No interruption: Power continues even if you're late paying (though you'll be chased for payment)
Cost Comparison: Prepay vs Bill Pay
Here's the reality: prepay electricity typically costs 10-20% more than bill pay.
Why Prepay Costs More
Higher unit rates: Prepay tariffs usually have slightly higher per-kWh rates
Prepayment service charge: An additional daily fee (typically €0.10-€0.20/day) on top of the standard standing charge
Fewer discounts: Prepay customers rarely access the introductory discounts available to bill pay customers
No cashback offers: Welcome bonuses and cashback deals are almost exclusively for bill pay
Example Annual Cost Comparison
For a household using 4,200 kWh per year:
| Payment Type | Unit Rate | Standing Charges | Service Fees | Total |
|---|---|---|---|---|
| Bill pay (best deal) | €1,260 | €200 | - | €1,460 |
| Bill pay (average) | €1,344 | €210 | - | €1,554 |
| Prepay | €1,386 | €210 | €55 | €1,651 |
Figures are illustrative. Actual costs vary by supplier and tariff.
In this example, prepay costs approximately €100-€190 more per year than bill pay options.
Prepay Electricity Providers in Ireland
The main prepay electricity suppliers are:
| Provider | Network | Notes |
|---|---|---|
| PrePayPower | Various | Largest prepay provider |
| Pinergy | Various | Prepay and smart options |
| Electric Ireland | Electric Ireland | Offers prepay option |
| SSE Airtricity | SSE Airtricity | Prepay available |
PrePayPower is the dominant prepay provider, specialising in pay-as-you-go energy.
Advantages of Prepay Electricity
Despite higher costs, prepay offers genuine benefits for some households:
Budget Control
You can never build up a debt you can't pay. You spend exactly what you top up, making it easier to budget week by week.
No Bills or Debt
No surprise bills arriving that you can't afford. If money is tight one week, you simply use less electricity.
No Credit Check
Prepay accounts don't require credit checks. If you have poor credit history or are new to Ireland, prepay may be easier to access.
Visibility of Usage
The in-home display shows your credit depleting in real-time. This makes you more aware of how much different appliances cost to run.
No Deposit Required
Bill pay suppliers may require a deposit from customers with poor credit. Prepay avoids this.
Disadvantages of Prepay Electricity
Higher Overall Cost
As shown above, prepay typically costs €100-€200 more per year than bill pay.
Top-Up Hassle
You need to remember to top up regularly. Running out of credit at inconvenient times (late at night, during holidays) is frustrating.
Power Reduction Risk
If you forget to top up and exhaust emergency credit, your power may be reduced to essential circuits only.
Fewer Supplier Options
The prepay market is smaller, with fewer competitive options compared to bill pay.
No Access to Best Deals
The cheapest electricity deals—with introductory discounts and cashback—are exclusively for bill pay customers.
Smart Meter Complications
Traditional prepay meters are being phased out. Smart prepay is replacing them, which may change terms and conditions.
Who Should Consider Prepay?
Prepay electricity makes sense for:
Those struggling with budgeting: If you find it hard to save for bi-monthly bills, prepay's weekly top-up model may suit better.
People with poor credit: If you can't pass a credit check for bill pay, prepay provides access to electricity.
Tenants in properties with prepay meters: If your rental already has a prepay meter, switching to bill pay requires landlord involvement and meter changes.
Those who've had problems with energy debt: Prepay prevents you from building up new debt.
Who Should Avoid Prepay?
If you can manage bill pay, you probably should:
Cost-conscious households: Bill pay is almost always cheaper.
Anyone who can pass a credit check: You'll access better deals.
Those with stable income: Regular bills are manageable if income is predictable.
Households seeking the best rates: Comparison switching only works properly with bill pay.
Switching from Prepay to Bill Pay
You can switch from prepay to bill pay, though the process is slightly more involved:
- Choose a bill pay supplier using a comparison site
- Apply for a bill pay account (may require credit check)
- Request meter change if needed (smart meters can support both)
- Complete the switch (typically 21 days)
Some suppliers may request a deposit (refunded after 12 months of good payment history) if you have poor credit or a history of energy debt.
Will I Need a New Meter?
With smart meters, the same meter can support both prepay and bill pay. The meter's mode is switched remotely.
With older prepay meters, a physical meter change may be required.
Switching from Bill Pay to Prepay
This is straightforward:
- Contact a prepay supplier (PrePayPower, Pinergy, etc.)
- Arrange installation of a prepay meter (or switch smart meter to prepay mode)
- Pay any outstanding balance to your old supplier
- Start topping up with your new provider
Be aware that any outstanding balance with your old supplier must still be paid.
Prepay for Gas
Everything above applies to gas as well. Prepay gas follows the same model—top up credit, use gas, credit depletes.
PrePayPower and other suppliers offer dual fuel prepay (gas and electricity together).
The cost differential is similar: prepay gas typically costs more than bill pay gas.
Making Prepay More Affordable
If you're on prepay and can't switch to bill pay, here's how to reduce costs:
Top up in larger amounts: Some providers offer better rates for larger top-ups.
Compare prepay providers: Even within prepay, rates vary. Use comparison tools.
Monitor your usage: Use the in-home display to identify wasteful usage patterns.
Use less electricity: Energy efficiency is even more important when you're paying premium rates.
Consider smart prepay: Some smart prepay options offer time-of-use rates with cheaper night electricity.
Common Questions
Can I switch prepay suppliers?
Yes. You can switch between prepay providers just like bill pay. The process is similar.
What happens if I run out of credit?
Most providers offer €5-€10 emergency credit. Once that's exhausted, power may be reduced to essential circuits (some lights, fridge) rather than cut entirely. Smart meters handle this differently than older prepay meters.
Can I have prepay electricity but bill pay gas?
Yes. Your electricity and gas accounts are separate. You can choose different payment methods for each.
Why can't I get bill pay?
Suppliers may refuse bill pay if you have:
- County Court Judgments (CCJs) or poor credit history
- Outstanding energy debts
- No credit history (new to Ireland)
- Failed identity verification
Will prepay improve my credit score?
No. Prepay accounts don't typically report to credit agencies, so they won't help build credit history.
Summary
Prepay electricity costs more than bill pay—typically €100-€200 per year for an average household. However, it offers genuine benefits for those who struggle with budgeting or can't access bill pay accounts.
If you can manage bill pay, it's almost always the cheaper option. The best savings come from switching between bill pay suppliers regularly to access new customer deals.
If you're currently on prepay and want to switch to bill pay, compare electricity suppliers to find the best deal.
Last updated: January 2026