Prepayment meter cap level: 1 October 2020 to 31 March 2021
Decision
The document below sets out the prepayment meter cap level, which will apply for the period 1 October 2020 to 31 March 2021.
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.
Alongside the cap levels we have also published the updated versions of the models / annexes.
The levels of the cap are expressed in pounds, excluding VAT. They are described for two levels of consumption for a customer that:
- does not use any energy
- uses an assumed amount of energy ‘m’
We calculate the level of the cap for all other possible consumption levels using these two values. Note that the levels of consumption ‘m’ are the Benchmark Annual Consumption Levels as specified in Standard License Condition 28A.
Guidance for energy customers
If you are an energy customer trying 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.
Default tariff cap
The Default Tariff Cap came into effect on 1 January 2019, bringing further price protection for all customers on poor value standard variable and default tariffs. More information can be found on our industry page Default Tariff Cap.