NEA response to Ofgem’s call for evidence on levelising payment method cost differentials

NEA response to Ofgem’s call for input on the allowance for debt-related costs (price cap)

One of the decisions is for Ofgem to calculate the price cap quarterly instead of every six months.

NEA argues that the proposed rules on financial resilience should only be implemented if they do not lead to an increase in the level of the price cap.

NEA argues that our clear preference is for the Enhanced Status Quo option.

NEA’s Response to the the Ofgem Statutory Consultation on short term changes to the price cap in April 2022.. NEA believes that the best option for fuel poor households is to “do nothing” and strongly disagrees with the proposals to allow suppliers to charge an exit fee for standard variable tariffs. NEA would support requiring suppliers to make all new tariffs available to existing customers.

NEA’s Response to the Ofgem Consultation on adapting the price cap methodology in the long term. NEA believes that Ofgem should investigate the viability of a parallel price cap for vulnerable households that has a lower cost base than the broader cap. We support the option to enhance the current price cap, but believe a move to fixed term standard variable tariffs would be an unacceptable option.

NEA believes that any changes to the price cap should not reduce the protections that are in place for fuel poor and vulnerable households during a significant increase in prices. Further protections could be put in place to provide deeper price protection for some; identify those with financial vulnerability; raise awareness of available support and directly address energy debt.