Levelisation of payment method cost differentials: a call for evidence
In January 2023, we flagged concerns relating to Prepayment Meter (PPM) practices and whether PPM customers are being treated fairly. To help inform this, we are asking for evidence on whether PPM and Standard Credit (SC) customers should continue to pay different amounts for their energy compared to Direct Debit (DD) customers, particularly where vulnerable customers may account for a higher proportion of consumers on PPM and SC compared to DD.
As part of this Call for Evidence (CfE), we are interested in views on the process of adjustment of payment charges between payment types by consumers, which we have termed as ‘levelisation’. In particular, we are seeking views on how we could levelise (eg unit rates and/or standing charges and full or partial levelisation). We also present our initial analysis on consumer impacts by payment type using illustrative examples, as well as the potential mechanisms through which reconciliation between suppliers may be undertaken to support levelisation.
We are requesting responses by 18 May 2023.