The Prepayment Meter Price Cap came into force on 1 April 2017 and will expire on 31 December 2020.
In August 2020, Ofgem announced that the Default Tariff Cap would continue to protect default prepayment meter customers after the CMA Prepayment Meter Price Cap expires at the end of 2020.
The Default Tariff Cap for the period 1 October 2020 to 31 March 2021 includes a new prepayment cap level, which will protect PPM customers with default tariffs once the CMA Prepayment Meter Price Cap expires on 31 December 2020. Suppliers can price to the prepayment meter cap level or below it, but cannot charge more.
When is the prepayment meter cap level updated?
Ofgem adjusts the level of the cap twice a year – in February and August to apply in April and October respectively – to reflect the estimated costs of supplying electricity and gas to homes in the next six-month summer or winter period.
The next price cap period begins on 1 October.
When will the Prepayment Meter Cap end?
In August 2020, Ofgem announced that the Default Tariff Cap would continue to protect default prepayment meter customers after the CMA Prepayment Meter Price Cap expires at the end of 2020. Ofgem will continue to monitor the energy market closely while the Default Tariff Cap is in place and produce an annual report on the competitiveness of the energy market. The government will decide whether to extend the cap beyond this, up to a maximum of 2023.
Implementation of the CMA remedies. Information on the Competition and Markets Authority (CMA) investigation into the energy market and recommendations for Ofgem to act, including those relating to prepayment meters.
Further publications and outputs relating to the prepayment meter price cap can be found in the publications feed at the foot of this page.
If you have technical or policy questions about the cap, please contact us at Retailpriceregulation@ofgem.gov.uk.
If you are an energy customer looking to find out your capped tariff price, please contact your energy supplier. You can find their contact information on an energy bill, or see Who is my energy supplier? You can also find answers to frequently asked questions on our consumer FAQ page, or see our energy price caps guide.