NEA response to Ofgem’s Final Price Cap decision
Today, Ofgem have released their final determination on the default tariff price cap. Within this determination, Ofgem say that customers who receive the warm homes discount and who do not have a prepayment meter will be moved away from the safeguard tariff and onto the new default price cap. Peter Smith Director of Policy and Research at NEA said:
“The price cap will give some protection for around 11m people who do not shop around and are on the worst deals. But, at the same time, Ofgem have pushed those on the safeguard tariff into the new broader cap. This lessens the focus on the most vulnerable and could expose them to higher costs when the cap moves. Fuel poor households need a strong and focused vulnerable price cap, based on expanded WHD eligibility, and part of a strong package of measures for the most vulnerable.
“In order to adequately protect the most vulnerable customers, Ofgem should take action to put them first when resetting the level of the price cap in March and the subsequent 6-month review periods. They should, with BEIS, also take on board our proposals set out last week on how to ensure that energy costs are kept low for vulnerable and fuel poor customers. This would include extending the Warm Homes Discount automatic rebate to more customers, investigating standing charges for prepayment customers and looking at extending the prepayment tariff cap.”