Prepayment Gas Meters in London Rental Properties: Landlord Obligations

What Is a Prepayment Gas Meter and Where Are They Found in London?

A prepayment gas meter, sometimes called a pay-as-you-go meter, is a gas meter that requires the householder to credit the meter in advance of use by inserting a topped-up key or card. When the credit runs out, the gas supply is interrupted until the meter is topped up again. Prepayment meters are more common in London rental properties than in owner-occupied homes, particularly in areas with historically higher rates of fuel poverty and in lower-cost rental stock. They were originally installed in properties where debt had accumulated on a credit meter, and were sometimes fitted by energy suppliers as a condition of reconnection after a supply disconnection for non-payment.

The presence of a prepayment meter in a London rental property is a material factor that affects the property desirability and the profile of prospective tenants. Some London tenants specifically seek out prepayment meter properties because they prefer the budgeting control that a pay-as-you-go meter provides. Others actively avoid prepayment meters due to the higher unit rates typically charged on prepayment tariffs compared to credit tariffs, the inconvenience of topping up the meter, and the risk of self-disconnection if the meter runs out at an inconvenient time.

Landlord Responsibility for the Prepayment Meter Condition

A landlord is not responsible for the commercial terms of a prepayment meter tariff, which are set by the energy supplier. However, the landlord is responsible for ensuring that the meter is in a safe and accessible condition, that the emergency credit facility is functioning, and that the meter is located somewhere that the tenant can access it at all times. A prepayment meter that is in a locked cupboard to which the tenant does not have a key, or that is in a communal area to which access is restricted, may give rise to a complaint or enforcement action by the local authority housing team or Ofgem.

The landlord is also responsible for ensuring that the gas installation into which the prepayment meter supplies gas is maintained in a safe condition and has a current Gas Safety Record. This obligation applies regardless of whether the meter is a credit meter or a prepayment meter. Prestige Engineers carry out annual gas safety checks and produce Gas Safety Records for London rental properties with prepayment meters, and can advise on any installation issues identified during the check.

Dealing with Prepayment Meter Debt on Change of Tenancy

When a tenancy ends in a London property with a prepayment meter, the landlord should check whether there is any remaining debt registered on the meter. Where a previous tenant accrued a debt on a credit meter that was subsequently converted to a prepayment meter, a portion of the standing debt is collected by the meter from each top-up. If this debt has not been fully cleared by the end of the tenancy, the landlord must notify the energy supplier of the change of tenancy and ensure that the incoming tenant is not burdened with a debt accrued by the previous occupant.

Ofgem rules prohibit energy suppliers from passing a debt from one tenancy to another. A landlord who is aware of a debt on the prepayment meter at the end of a tenancy should contact the energy supplier to arrange for the meter to be reset or the debt cleared before the new tenant takes up occupancy. Failure to do so may result in a complaint against the landlord by the new tenant if they discover that their top-up credit is being used to service a previous occupant debt.

Switching from a Prepayment Meter to a Smart or Credit Meter in a London Rental

A landlord who wishes to upgrade a prepayment meter in a London rental property to a smart credit meter should contact the energy supplier to arrange this. The supplier will normally agree to fit a smart meter at no charge to the landlord as part of the national smart meter rollout. The tenant will need to be informed in advance of the meter change and their consent obtained where they are the bill payer. Where the landlord is the bill payer, the landlord can arrange the meter change directly with the supplier without requiring tenant consent, although informing the tenant in advance is good practice and avoids unnecessary confusion when the installation appointment is arranged.