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 March 2020, we issued a policy consultation on protecting consumers with prepayment meters after the PPM cap expires. We have now considered stakeholders’ responses and are publishing a statutory consultation with our proposals.
This consultation sets out how we propose to protect PPM customers on default tariffs. Alongside the main consultation document, we have also published a draft notice for amending SLC 2AD of the gas and electricity supply licences and an updated model to calculate the level of the default tariff cap.
If you wish to respond to this consultation, please send your views to email@example.com by Friday 26 June 2020.