Changes to prepayment meter standing charges and other debt costs

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.