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Ofgem cuts electricity prepayment tariff for 3 million UK households

Staff Writer | August 7, 2017
Ofgem said it has reduced the prepayment meter safeguard tariff to cut bills for around 3.0 million UK households by up to GBP19 a year.
Britain   The UK energy regulator
The UK energy regulator said from October 1 the safeguard tariff will fall to GBP1,067 from GBP1,048 for a dual fuel repayment customer based on typical consumption.

The price cap will fall for electricity customers with prepayment meters by around GBP19 a year, but customers with economy meters "may see smaller reductions".

Meanwhile, the prepayment price cap for gas customers will remain "broadly unchanged".

Ofgem introduced the temporary safeguard tariff in April and said it would update it every six months by taking the benchmark calculated by the anti-trust regulator, the UK Competition & Markets Authority, and update it using a number of different indices to reflect broad trends in costs, such as wholesale prices, forecasts of environmental levies and inflation.