OFGEM ADVISED TO EXTEND ENERGY PRICE CAP FOR PREPAYMENT CUSTOMERS BEYOND 2020

摘要

OFGEM HAS BEEN ADVISED to extend beyond 2020 the cap on energy prices for people who pay for their energy upfront.The cap will also be raised,according to The Independent.The Competition and Markets Authority(CMA) introduced the cap on gas and electricity prices in 2016 to protect customers on prepayment meters as they are not able to switch suppliers as easily as other customers.The cap was due to be lifted at the end of 2020,as the CMA expected that by then the rollout of smart meters,replacing prepayment meters,would be complete and increased competition would lead to lower prices.But following a review,the CMA said:”It now recommends that Ofgem should continue to protect prepayment customers once the CMAs cap expires,given that the full rollout of smart meters will not have completed by 2020.”The regulator did not say how long the extension should be.