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Selection of Pay-As-You-Go (PAYG) units is fraught with peril, often restricting available operators and/or increasing residents’ bills.

While the industry is moving towards predominantly ‘open’ PAYG systems, most manufacturers only offer access to a limited number of operators. Systems which have Open API offer the most flexibility. However, it may be the case that even when the manufacturer is willing to provide access, some operators will refuse to accept this as complications arise due to their own collaborations with competitors.

PAYG systems are useful for managing bad debt as they provide the facility to remotely shut off heat to a property.  This may benefit the metering and billing provider, but the brunt of the cost is borne by the customer adding up to £50 per year to the heat bill, or up to double that figure for more sophisticated units.  Where an in-home display is not required to operate the PAYG system, replacement costs can be reduced significantly.

Ultimately, once you commit to a preferred unit, it is difficult to switch and your choice of product may limit the operators available (and hence cost-control over that element). To get the best deal for your customers, it’s important to consider the PAYG product at the same time as who will operate the system.

Posted on October 22nd, 2020

Author: Carlyne Parillon