If you're on a low income or the energy company is worried you may not keep up to date on bills, you may have a prepayment meter installed in your home. Nearly 6 million homes have a prepayment meter in the UK and householders top up their gas or electricity with a pay-as-you-go smartcard, key or token.

While meters may help with budgeting, the fact is these tariffs are generally more expensive than contracted gas and electricity. So you're likely to be able to lower your utility bills by moving to a standard payment plan.

However, there are a couple of points you'll need to consider before you definitely decide to switch:

1. Is your credit report up to scratch?
You are likely to be credit checked before a supplier will agree to move you from a prepay meter to a contract supply so it makes sense to check your credit report is in order before you apply.

Read this article to find out how to check your rating, and this article to find out how to improve it.

2. Are you able to commit to a monthly payment?
If you switch to contract gas or electricity it's likely that you'll have to pay a larger amount at roughly the same time each month (or quarter depending on which option you chose). You'll need to consider whether this is something you're happy to do. You'll also have a less transparent way to monitor your energy usage.

Ideas to help you budget for a monthly bill

• Put money aside in the same place when you get paid (perhaps a separate bill account). Arrange payment dates to coincide with your payday each month
• Arrange a direct debit so bill payments leave your account on a date that works for you but make sure you know when it's coming out so you can make sure you have sufficient money to cover it
• Be organised and get stamps and envelopes ready to post your payments by cheque
• Try to pay in cash on the same day each month at the post office, a newsagent or garage with a Payzone or Paypoint sign.

3. Are you happy to cover the cost of getting a new meter?
It's likely that you'll be asked by your new energy supplier to cover the cost of having a new meter installed - this is likely to be around £100 but will vary depending on the supplier. It's also worth noting that some suppliers require you to have been a customer for a certain period of time before they allow you to switch.

4. Would you be better off switching to a different prepay tariff?
If you aren't convinced that switching to contract energy is the right option for you it's still worth shopping around for a better deal as you should still be able to save.

Use a utilities comparison website to check the prepay energy tariffs available - you should get the following information to hand for when you start your search.

• Your postcode
• The name of your current gas and electricity supplier(s)
• Whether your gas is supplied via gas mains or by an IGT
• Your average monthly usage
• How much you pay now per kilowatt/hour
• How much you pay, on average, a month
• Whether you are on a dual fuel tariff, or have your gas and electricity with different suppliers