Work continues to end the prepayment premium as the statutory consultation opens

Energy consumers in the UK who use prepayment meters have historically been charged more for their energy than those who pay via direct debit. Following selection by Ofgem, we are developing systems and processes to levelise energy bills between prepayment meter and direct debit customers. Following a policy consultation in August, Ofgem have now opened their statutory consultation on changes to prepayment meter standing charges and other debt costs. Find out more below.

Ofgem have opened their statutory consultation

Ofgem opened their statutory consultation on the 23rd of November, which sets out their latest proposals for levelisation. The consultation is open until the 2nd of January 2024. They are proposing to proceed with:

  • A first phase of levelisation of Prepayment Meter (PPM) and Direct Debit (DD) standing charges from April 2024.
  • Followed by a second phase of levelisation of debt-related costs between Standard Credit (SC) and DD customers. This stage will be implemented no earlier than October 2024.
  • Supporting both stages of levelisation with a reconciliation mechanism.

We can confirm that we’re on track to deliver the proposed reconciliation mechanism from April 2024 and have raised the accompanying REC Change Proposal. You can read the proposal in full here.

Join our webinar

Following our initial webinar in October, we’re hosting a progress webinar on the 30th of November to confirm when the new levelisation system will be implemented, how the scheme will operate, the changes being made to REC legal text, the latest data reporting requirements, and to answer key questions from our stakeholders. Jonathan Windeatt, Industry, Operations and Commercial Expert (Retail Energy Policy) from Ofgem, will join us with subject matter experts and key project delivery personnel from RECCo.

You can still register here.

Latest Posts

accounting
Response to 'Affordability and debt in the domestic retail market - a call for input'
Inside RECCo (1200 × 400px) (1200 x 600 px) (19)
Join the Switching Advisory Forum as we plan for the potential transfer of the Central Registration Service
Careers Iimage New 01
Ofgem is consulting on the future of switching
Consultations Image New
Do you have experience with the Switching arrangements? We want to hear from you!
FeatImg11Asset 12
RECCo Budget Appeal Outcome: Authority Decision to dismiss the DCC's Appeal
About Us Image New
Enhancing Transparency: Our plans to improve RECCo’s Budget process
New year, (1200 × 1200px) (21)
Work continues to finalise our Third Party Intermediary Code of Practice
Whoi We Are IMage New
Board Highlights April 2024

Share this post

Scroll to Top