Home Business NewsBusiness Ofgem cap set to save prepayment customers £80 a year

Ofgem cap set to save prepayment customers £80 a year

7th Feb 17 9:58 am

Will you benefit from the saving?

Anyone on prepayment energy meters are expected to see savings of £80 a year, this is due to a price cap which has been announced by energy regulator Ofgem. A total of 4 million customers will see the saving.

The temporary price cap comes into effect in April, it’s one of the measures recommended by the Competition and Market Authority after it completed a two-year investigation into the energy market.

The level of the cap does vary depending on gas and electricity meter type, the region you are living in will also effect it.

It will be updated every six months and is expected to stay until 2020.

Ofgem chief executive Dermot Nolan said: “We want all consumers to enjoy the benefits of a more competitive energy market, regardless of their circumstances.”

“Customers who prepay for their energy are denied the best deals on the market available to those using other payment methods.”

“They are also more likely to be in vulnerable circumstances, including fuel poverty. This temporary cap will protect these households as we work to deliver a more competitive, fairer and smarter market for all consumers.”

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