Response to Ofgem Policy consultation for protecting energy consumers with prepayment meters
Date: 01st Jul 2020
It is imperative that prepayment meter (PPM) customers continue to receive protection. The CMA stated in its initial ruling of the energy market investigation that PPM customers have higher actual and perceived barriers to switching that arise from both lack of internet connectivity and the need to physically change meter to switch to a wider range of tariffs (and associated perceptions of the complexity of this). In addition, PPM customers are often likely to: have a poor credit history; be severely indebted or; be stranded on PPM due to the preferences of their landlords. The CMA believed that the best way to remedy this was to enforce a price cap for all prepayment metered customers which should be active until the smart meter rollout had been substantively completed for this customer set. NEA agrees and as the CMA set out in their mid-term review, the smart meter rollout has not reached a point where it would be acceptable to stop the prepayment cap. It is therefore clear that the prepayment cap must continue after its upcoming termination in the form of a CMA regulated cap.
Download our full response below.
Resources
Adapting the price cap methodology for resilience in volatile markets: NEA response to Ofgem consultation
14th Jan 2022
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...
Adapting the price cap methodology for resilience in volatile markets: NEA response to Ofgem consultation
14th Jan 2022
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...
Ofgem consultations on reviewing the Price Cap in winter 2021/22 - NEA response
15th Dec 2021
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...
Maximising the smart meter rollout for prepayment customers
29th Jun 2021
This research study has been completed with the support of Smart Energy GB to evaluate the potential benefits of smart prepayment, investigate remaining barriers that are preventing further uptake and consider a range of potential interventions to maximise the rollout...
NEA response to Ofgem’s Forward Work Plan 2021-23
16th Feb 2021
NEA’s Response to the Ofgem Consultation on their Forward Work Programme 2021/23 Gas Levy. NEA believes that Ofgem should provide clarity on the actions they will take in the next year of their consumer vulnerability strategy.
NEA response to Ofgem FPNES Governance Drafting Consultation
29th Jan 2021
NEA’s Response to the Ofgem FPNES Governance Drafting Consultation. NEA fully supports the Fuel Poverty Network Extension Scheme, and is pleased that it will continue until 2026. In order for the scheme to reach its full potential, Ofgem must require...
NEA response to Ofgem consultation on Reviewing the potential impact of COVID-19 on the Default Tariff Cap
21st Dec 2020
The alarming increase in Excess Winter Deaths last year was before the impact of Covid-19 struck. Covid-19 is likely to have left many households more exposed to the risks of living in a cold home than ever before
Response to Ofgem consultation 'Extending protections for domestic customers who may have prepayment meters installed under warrant
08th Dec 2020
Overall, NEA is pleased that Ofgem is seeking to extend protections for domestic customers who may have prepayment meters installed under warrant (Electricity and Gas Supply Standard Licence Condition 28B). We fully support this approach and it will be necessary...
NEA response to Ofgem’s RIIO 2 Sector Specific Consultation (ED2)
17th Oct 2020
NEA has extensively engaged with Ofgem the DNOs to help shape this price control, through stakeholder meetings, workshops, and through working with Ofgem in the RIIO 2 working groups. NEA is so far pleased with Ofgem’s approach in the ED2...
NEA response to Ofgem’s self-disconnection and self-rationing final proposals
23rd Aug 2020
NEA response to Ofgem’s self-disconnection and self-rationing final proposals
Response to Innovation funding and competition: further consultation on design and implementation
27th Jun 2020
NEA recognises that many low-income households experience affordability issues with their essential household bills, rarely struggling with one bill in isolation, and as a result is delivering a programme of work which seeks to support ‘People Living in Water Poverty...
NEA response to Ofgem’s Forward Work Programme 2020/22 Consultation
17th Jan 2020
Over the last year, NEA, alongside other consumer groups, worked with Ofgem to secure some key improvements in the treatment of domestic customers. In particular, we worked to ensure that low income and vulnerable customers had adequate protections in gas...
NEA response to Ofgem’s consultation “Proposals to improve outcomes for consumers who experience self-disconnection and self-rationing”
22nd Sep 2019
The proposals made in this consultation will undoubtedly have a material affect on the number of customers that self-disconnect and self-ration. They are broadly in line with a number of suggestions that NEA made within our response to the preceding...
NEA response to the Joint BEIS and Ofgem Consultation “Flexible and Responsive Energy Retail Markets”
22nd Sep 2019
NEA believes dramatically improving domestic energy efficiency levels remains the most enduring solution to addressing energy affordability, however, we also know other key actions are required in retail energy markets to safeguard vulnerable domestic customers, particularly those living on the...
© 2024 NEA all rights reserved.