Introduction
The main difference between prepayment (often called PAYG — Pay-As-You-Go) and credit invoicing is when and how you pay for your energy use.
With prepayment, you add money to an account balance (sometimes described as buying credit). As you use energy, that balance goes down to reflect the cost of what you have used. Depending on your setup, you may top up online, and your supplier may use metering data to keep your balance up to date.
With credit invoicing, you typically receive an invoice after a period (for example monthly or quarterly), based on actual or estimated consumption. You then pay that invoice in full or according to a payment plan your supplier offers.
Prepayment can suit people who prefer smaller, regular payments and want to see a live balance. Credit invoicing can suit people who prefer one predictable bill per period and are comfortable paying after the fact.
Pricing and terms depend on your supplier and contract. Some suppliers’ prepayment terms may differ from their credit-billing terms; always refer to your own tariff and conditions.
How this works in Zero Friction
In Zero Friction, each contract (and related service location) can be set up for either credit invoicing or prepayment (PAYG). The platform records consumption in both cases; what changes is mainly how payments and balances are handled and what you see as a customer or as supplier staff.
What you’ll typically do on prepayment (PAYG)
As a resident or customer
Check your balance (for example in the customer portal, where your supplier enables it).
Top up when your balance is low.
If your supplier enables it, use automatic top-up so a payment is triggered when the balance drops below a limit.
As supplier staff
Register move-in and move-out for sites on PAYG.
Configure top-up and, where used, automatic top-up.
Handle exceptions (for example corrections or one-off credits), according to your organisation’s process.
Core processes for PAYG
These are the main building blocks suppliers use to run PAYG alongside metering and billing in Zero Friction:
Process | In plain terms |
Move-in | Start prepayment for someone at a service location: the customer gets a PAYG balance and the rules your organisation has configured. |
Move-out | End prepayment for that location: any final balance or amounts owed are handled according to your supplier’s process (for example closing settlement). |
Top-up | The customer (or your team, if you do it on their behalf) adds money to the prepayment balance. |
Auto top-up | When enabled, the system tops up automatically when the balance falls below a threshold you set. |
Change of mode | Switch a customer from credit invoicing to PAYG or the other way around. This may involve settling or transferring balances; exactly what happens depends on your configuration and process. |
Usage and balance | As consumption is recorded, the cost of energy used reduces the available balance (unless your supplier has enabled other rules—see below). |
Optional rules your supplier may enable (PAYG)
Not every organisation uses these; they only apply when turned on in configuration.
Emergency credit — A limited amount of extra usage may be allowed after the balance reaches zero, so supply is not interrupted immediately. Any such credit is usually recovered from later top-ups, up to the limit your supplier sets.
Friendly credit — In certain time windows (for example weekends or holidays, depending on setup), usage may be treated more favourably so the customer is not pushed into general debt as quickly.
Starting or one-off credit — Your supplier may credit a starting balance or a one-off amount so the customer does not fund the entire opening balance themselves.
If you are unsure what applies to you, ask your supplier; these options are not universal.
Paying down debt from a top-up (simple explanation)
If your balance shows that you owe money (for example you used more than you had prepaid, or emergency credit was used), your supplier may set rules so that part of your next top-up pays that off first, and only the remainder increases your usable balance. That helps clear arrears in a controlled way.
Frequently asked questions
Do I still get invoices on prepayment?
Usually the main flow is balance and top-ups, not periodic consumption invoices—but your supplier may still send other documents (for example fees or closing statements). Check with them.
Can one address be on credit and another on PAYG?
Yes, if your supplier sets it up that way: billing mode is tied to how each contract or site is configured.
What if I don’t top up?
Your balance can reach zero; depending on rules, supply or service may be limited or stopped, or emergency credit may apply briefly. Your supplier’s terms apply.
Who sets prices and payment methods?
Your supplier and contract determine tariffs, payment options (e.g. card payments where enabled), and whether auto top-up is available.
Something wrong with your balance or payment?
Problem | What to try |
Top-up succeeded but balance unchanged | Wait a few minutes; refresh the portal. If it persists, contact your supplier with the payment time and amount. |
Balance drops faster than expected | Check recent consumption and any fees your supplier applies; cold weather and higher use also increase charges. |
Mode changed from credit to PAYG (or reverse) and amounts look unclear | Ask your supplier how opening balance, transferred debt, or final invoice were handled for your account. |