Ofgem Roundtable Report - Payment Differentials

Publication date
26th March 2015
Information type
Policy area

Dual fuel prepayment and standard credit customers pay on average £80 more per annum for their energy than those using direct debit. While not all PPM or SC customers are on low incomes, they are more likely to be in fuel poverty than DD customers. Concerns have therefore been raised about the impact of this difference in cost on consumers on low incomes and in vulnerable situations. There have been calls for price differentials to be removed or regulated.

In May 2014 we completed a review of price differentials and published our results. We found no evidence of overcharging. We hosted a roundtable to discuss prepayment and standard credit payment differentials and the potential action that could be taken to support low income and vulnerable consumers who use these payment methods.