- Publication date
- 24th February 2017
- Information types
- Policy areas
On 1 April 2017, the amount of money suppliers can charge a domestic prepayment meter (PPM) customer per unit of energy became subject to a safeguard tariff (or ‘price cap’). The cap was brought into effect by the Competition and Markets Authority’s (CMA) Energy Market Investigation (Prepayment Charge Restriction) Order 2016, available on the CMA’s website.
On the 2 February 2018, Ofgem extended this price protection to a further one million vulnerable customers receiving the Warm Home Discount. Please see below for further information for suppliers.
Under SLC 28A, suppliers must provide us with a report no more than five working days after the start of each Charge Restriction Period which demonstrates the compliance of each prepayment tariff that they offer. The required content of the report is specified in standard licence condition 28A.29; we have published the latest version of the reporting template that suppliers are asked to use to submit this information below (last updated in July 2017).
In addition, we have published a short document addressing some of the queries we have received regarding the cap since the initial levels of the benchmark maximum charges were published on our website (last updated February 2018). This document includes worked examples showing how a supplier can ensure that their prepayment tariffs are compliant with the cap.
Any questions on either of these documents should be sent to PPM.PriceCap@ofgem.gov.uk
Warm Home Discount reporting
Suppliers looking for the reporting template and guidance on how to use the latest safeguard tariff values to ensure that their tariffs comply with the cap for customers receiving the Warm Home Discount, should refer to the document on our page safeguard tariff (Warm Home Discount) - reporting template.