Changes to prepayment meter standing charges and other debt costs
- Consultation status:
- Closed (with decision)
- Publication date:
- Closing date:
- Topic:
-
Energy pricing rules
- ➞ Standing charges
Metering- ➞ Prepayment meters
- Industry sector:
- Supply and Retail Market
Decision:
This statutory consultation sets out our updated proposals for levelisation, which is the process of adjusting costs between payment methods to make charges more equal or equitable but less cost-reflective. This follows a policy consultation in August 2023.
We are proposing to proceed with:
- A first phase of levelisation of Prepayment Meter (PPM) and Direct Debit (DD) standing charges from April 2024.
- Followed by a second phase of levelisation of debt related costs between Standard Credit (SC) and DD customers. This stage would be implemented no earlier than October 2024.
- Supporting both stages of levelisation with a reconciliation mechanism.
We are also consulting on our proposed Standard Licence Condition modifications and default tariff cap model changes to enable levelisation.
Respond name
Sabreena Juneja