There are distinct advantages to pay-as-you-go solutions for various services - whether it's a mobile phone you only use rarely, or an internet browsing service you only require for checking emails and accessing basic websites. In these situations, paying for services as you use them can be more cost-effective than signing up to a contract for a fixed term that offers more services than you actually need. The same applies to prepayment meters installed in many properties that allow households to pay for gas as and when they need it.

But while these units may give customers greater control over the amount they pay for their gas - by paying money at their local newsagent or other establishment to top up cards and other memory devices - they can also lead to frequent gas users paying significantly more for their fuel than customers on monthly or quarterly tariffs with energy suppliers. For example, some reports claim that metered users pay up to £195 more each year. The increase in gas prices due to supply shortages may also be more keenly felt by users of prepaid cards, as these may need to be topped up at incrementally shorter intervals than in previous months, even when a property's gas consumption remains relatively constant.

Prepayment meters have thus come under criticism from energy industry regulator Ofgem, who cite in particular the presence of these meters in many low income properties, such as those belonging to students, elderly people and the unemployed, where financially disadvantaged residents may be penalised more than households on higher incomes which are eligible to receive standard gas tariffs. On the other hand, many people in low income households who use these meters on a regular basis have gone on record to say they are well-suited to their situation, as they allow more effective budgeting and help to avoid the unwelcome surprise of large gas bills following the winter period, when gas fires and other appliances tend to run up greater charges.

Speaking to gas companies should inform you whether a prepayment meter will be the best option for you or if you could benefit more from a certain type of gas tariff suited to your situation and budget. Speaking to an independent advisor could help you to choose the most suitable gas company for your prepayment meter too, with some providers imposing additional charges that make the cost of receiving gas more expensive than it needs to be.

Fiona Roy writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.