Pay as you go or monthly ?

Strange as it may seem, currently PAYG can be cheaper that pay monthly, even cheaper than monthly direct debit.

It's because of current Ofgem rules about PAYG tariffs.

Of course PAYG comes with it's own problems with keeping on top of the topping up.

You can check the OVO rates yourself by putting your postcode in here and then using the filters to change between PAYG/Pay on demand/Pay by Direct Debit.

https://plans.ovoenergy.com/

Remember that the figures there are before VAT, which doesn't currently affect electricity, but you need to add 5% to gas.

You may also want to look at the 1-year and 2-year fixed tariffs, energy prices are forecast upwards for a while yet and so a fix is often the best way to keep your energy budget under control.for the next few years.

(I've just taken a 2-year fix with Eon.Next so I know my energy tariff is not going to change for the next two years whatever happens to variable prices)..

Hey ​@Tenkar 

I’m glad to see Nukecad has already stopped by with some really helpful advice on this one already.

Pricing for PAYG and Pay Monthly are very similar at the moment, unlike previously when Pay Monthly was often somewhat cheaper. 

I hope you find Nukecad’s advice helpful.

If you do think about changing over, the following topic may be helpful:

​@Nukecad wrote: 

PAYG can be cheaper that pay monthly, even cheaper than monthly direct debit. It's because of current Ofgem rules about PAYG tariffs.

This changed after the outcry a few years ago about defaulters having prepayment meters (PPM) forcibly installed. There were many quick to point out that prepayment was significantly more expensive than, say. paying by Direct Debit (DD), so eventually Ofgem was compelled to introduce a ‘levelization’ charge which those not on PPM have to pay to remove the differential PPM customers would otherwise be subjected to. You can see the relative figures for the typical household here: Summary of changes to energy price cap 1 October to 31 December 2026. Note that the cap for PPM is £1678, as opposed to £1723 for the DD customer.