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

Ofgem is looking to understand whether it is desirable to levelise the payment cost differentials in the price cap, to reduce/remove the premium that prepayment and standard credit users face in the energy market. NEA believes that within this work there are three areas that require significant consideration from the point of view of fuel poor and vulnerable households. Firstly, that price differentials create unfairness in the market that have a significant impact on vulnerable customers. Secondly, that Ofgem should look to be ambitious in its work to reduce the premiums, but pragmatic options exist to make significant improvements to the current market. And third, that the application of price differential reduction should be universal in nature to avoid vulnerable households from missing out.