Ofgem publishes price cap decisions ahead of update

5 Aug 2020 10:51 AM

Ofgem has today published three decisions relating to the price protection provided to default tariff and prepayment customers following its statutory consultations published in May.

Firstly, Ofgem has decided to roll the prepayment meter cap into the default tariff price cap (known as the “price cap”).

This price protection for prepayment meter customers will continue as long as the price cap is in place. The existing prepayment meter cap expires at the end of 2020.

Ofgem has also updated values for the smart meter net cost allowance and added an adjustment allowance for the cost of wholesale energy in the first cap period.

Ofgem will set out the total impact on customers when it updates the price cap level for the October 2020 - March 2021 period on August 7.

Ofgem has a statutory requirement to publish these decisions no later than today to allow 56 days’ notice before they take effect for October 1.

The price cap ensures that customers pay a fairer price for their energy.

Further information

For investors, contact:

Aidan Stringfellow

Aidan.Stringfellow@ofgem.gov.uk

07387 049 764

For media, contact:

Tim Webb

Tim.Webb@ofgem.gov.uk

0792 882 9894

About Ofgem

Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.

For facts, figures and information about Ofgem’s work, see Energy facts and figures or visit the Ofgem Data Portal.

For energy insights and updates straight to your inbox from Ofgem, please subscribe.