prepayment

Customers on prepayment schemes - usually people on low incomes struggling to pay bills - used to pay a higher rate than others, but now they pay 3% less than the capped variable rate.

Those who pay their bills every three months by cash or cheque pay more, but those on prepayment meters pay a little less.

Tens of thousands of energy customers are set to receive payouts of up to £1,000 each, and could see debts written off, in response to the scandal over the forced fitting of prepayment meters.

Between April and June, households on prepayment meters are paying slightly less than those on direct debit, with a typical bill of £1,803, a rise of £113 from the previous quarter.

For example, a prepaid pass for five rides on a fixed route will offer a 5% discount, and a prepayment on 20 will come with a 20% discount.