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UK: Ofgem caps energy prices millions on CMA recommendation

By  |  February 7, 2017

The energy regulator said the move, which comes into effect from April, would save typical prepayment customers around £80 a year, with many seeing a reduction in their gas bill of around 10-15%.

The cap is one of the Competition and Market Authority’s (CMA) remedies following a two-year investigation into the energy market.

The investigation found prepayment meter customers face “particularly high levels of detriment” as competition among suppliers is less developed than for those who pay by direct debit, cash or cheque.

This means there are fewer tariffs available to these customers and the tariffs that are available are generally more expensive.

Dermot Nolan, chief executive of Ofgem, 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.

Full Content: Financial Times

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