E.On is trialling a “smart” pay as you go tariff. It will cover just 30,000 customers who are currently on prepayment meters or pay on receipt of their bill. The tariff will be not be offered to other existing and new customers until next year.

Customers will pay the same tariff as direct debit customers. E.On claimed dual fuel customers on the trial could save up to £104 compared to standard tariffs – and said its tariff would be £67 cheaper than Ovo’s pay as you go tariff, launched earlier this year. Responding to the launch, Citizen’s Advice said it wanted the Ovo initiative to “kick-start competition” in pre-pay, where customers “pay more money for a second rate service”.

Customers have to qualify to join the E.On trial and will receive a smart meter. They will not, however, be able to pay in cash (assuming there is mobile phone coverage). Those who currently pay on receipt of bill will be paying in advance instead of in arrears.

E.On will be contacting eligible customers about the trial, or customers can register here, to see whether they are eligible

Subscribers: for more on pre-pay, log in to the subscriber area at www.newpower.info to see our interviews with Ovo CFO Chris Houghton and Utilita MD Bill Bullen, available in the archive.