Decision on adjusting standing charges for prepayment customers
Decision
Publication date
Industry sector
Supply and Retail Market
This is our decision on adjusting (or ‘levelising’) standing charges for prepayment meter (PPM) and direct debit (DD) customers from April 2024, with an accompanying reconciliation mechanism. This will make payment methods more equal or equitable (but less cost-reflective).
We also signal our current intention to levelise debt-related costs across standard credit (SC) and DD customers following industry development and build of a volumetric reconciliation mechanism and in the context of our wider work on the Operating Costs Review and our forthcoming work on debt and affordability in the energy market.
Before the end of the first year, we will review the impact and operation of the levelisation of PPM and DD standing charges and consult on the levelisation of SC and debt-related costs, including a new methodology for Fixed Tariff Contracts (FTCs), for implementation from April 2025.