Background on prepayment meter safeguard tariff

Agendas, minutes and presentations

Publication date

Industry sector

Supply and Retail Market

From 1 April 2017, the amount suppliers can charge a domestic prepayment customer will be subject to a transitional cap – the prepayment price cap, or 'safeguard tariff'. The cap is 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 (opens another website).

The slides below, adapted from a presentation given at the time of the launch of the cap, provide an overview of why it was introduced, and how it is set. Further details are available in chapter 14 of the CMA’s final report, and in its explanatory note.