Decision on protecting energy consumers with prepayment meters

Licence modification

The current PPM cap was designed by the CMA as part of the Energy Market Investigation Remedies and was implemented by Ofgem in April 2017. The CMA further reviewed the cap in 2019 and altered the methodology, largely aligning it with the default tariff cap.

On 31 December 2020, the PPM cap is due to expire. In May 2020, we issued a statutory consultation on protecting consumers with prepayment meters after the PPM cap expires. We have now considered stakeholders’ responses and are publishing our decision.

The decision sets out how we will protect PPM customers on default tariffs. We have also published:

  • a licence modification notice setting out our changes to SLC 28AD of the gas and electricity supplier licences;
  • a notice of Baseline Values and Initial value of the CHPIH Index;
  • a note on combined licence changes;
  • an updated model to calculate the level of the default tariff cap; and
  • an updated annex model (Annex 5) for calculating the Smart Metering Net Cost Change