Pay as you go price cap
We’ve been telling Ofgem, the energy industry regulator, for a long time that Pay As You Go customers are being overcharged by other energy companies – equal pricing for all, that’s the way we think it should be.
Ofgem and the Competition Markets Authority have now introduced a price cap that will ensure PAYG customers are not overcharged – although it doesn’t guarantee that they will get access to the best deals with other energy companies.
What is the PAYG price cap?
As a result of serial over-charging of PAYG customers by many energy companies across the industry, the Competition Markets Authority and Ofgem have imposed a cap on how much energy companies can charge those customers.
Ofgem will review prices across the industry every six months. That means every April and October there could be small changes to PAYG energy prices for every supplier across the country.
The cap is temporary, and should expire by the end of 2020 when the Smart meter rollout is complete.
You can find all the detail you need about the cap on the Ofgem website.
Does that mean I will receive a price reduction?
After Ofgem’s latest review, we were happy to reduce our PAYG prices from 1 October.
However, because of this change, and because it generally costs us more to manage PAYG energy accounts than other energy accounts, we’re planning to remove the annual £15 dual fuel discount for all dual fuel PAYG customers from 2 December.
Despite the discount removal, many dual fuel customers will still be paying less for their energy because of the October reduction – but we have written to all customers to explain exactly how the discount removal affects them.
Last updated: 30 October 2017