Competition and Markets Authority
Last June, following a two-year investigation into the energy market, the Competition and Markets Authority (CMA) decided to put in place a temporary price cap to protect some of the most vulnerable households in Britain.
The temporary cap is expected to reduce bills across Britain and will save the average household 80 a year. The CMA found that people using pre-payment meters had less choice and were paying disproportionately higher bills than customers paying by other means including direct debit.
The price cap will remain in place until the end of 2020 when the smart meter roll-out combined with other changes imposed on the industry by the CMA is expected to tackle issues that prevent such customers accessing the better deals available to others.
Andrea Coscelli, Acting Chief Executive of the CMA, said:
Households across the UK deserve to get a fair deal on their energy bills.
On top of a number of measures to get competition working better, the CMAs pre-payment meter price cap means that more than 4 million consumers, many of whom are vulnerable, and who cant easily shop around for a better deal, will see their bills cut by around 80 a year each, saving British customers a total of 320 million per year.