Prepayment price cap: 1 October 2017 to 31 March 2018
Decision
Publication date
Industry sector
Supply and Retail Market
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The document below sets out the level of the prepayment price cap, or safeguard tariff, that will apply for the period 1 October 2017 to 31 March 2018. Also provided are two spreadsheets showing how the network charge component of the cap has been calculated, and how this and other inputs have been used to derive the final level of the cap.
These spreadsheets are updated versions of the illustrative price cap model and network cost calculations spreadsheet published previously by the CMA.
The levels of the cap are expressed in pounds, excluding VAT. They are described for two levels of consumption: a customer that does not use any energy, and a customer that uses a pre-set amount of energy ‘m’. The level of the cap for all other possible consumption levels is then derived using these two values. Note that the levels of consumption ‘m’ are not the same as the current typical domestic consumption values which are commonly used for calculating a typical annual bill.
Suppliers looking for additional guidance on how to use these values to ensure that their prepayment tariffs are compliant with the cap should refer to the document on this page, where we answer some frequently asked questions, and provide a worked example.