Why are you changing the price of my prepayment tariff?
Ofgem, the UK’s energy regulator, sets a price cap that limits how much suppliers can charge customers for each unit of energy they use. It's updated every three months and is based on Ofgem's calculations of the costs of getting energy into your home. This is why a specific price cap is set for prepayment meter accounts.
What are the new rates?
For the price cap period covering 1 January to 31 March 2024, the average UK household* with a prepayment meter pays £1,960 a year for their energy. For comparison, the same household on a flexible (standard variable) tariff pays £1,928.
When Ofgem's price cap changes on 1 April 2024, the average UK household* with a prepayment meter pays £1,643 a year for their energy. The equivalent household on a flexible (standard variable) tariff pays £1,690.
What can I do if I’m unhappy about my new rates?
If you’re unhappy with the new rates, you’re free to switch suppliers without charge. If you’re repaying a debt via your prepayment meter and the debt is £500 per fuel or less, your new supplier must accept the debt as part of the switch. If your debt is more than £500 per meter, the new supplier may agree to transfer the debt, but isn’t obliged to.
Can I move from my prepayment meter to a credit tariff?
You may be able to switch to a credit tariff, depending on your circumstances and the type of meter you have, and whether we can replace your meter with one that supports credit tariffs. If you’re using your prepayment meter to repay a debt, we can’t replace your meter, or offer you a credit tariff.
*The average annual cost figure is for illustrative purposes only and is based on Ofgem’s national average consumption rates of 2,700kWh of electricity and 11,500 kWh of gas. Your actual costs may differ based on the amount of energy consumed.