Prepayment meters to be charged at same rate as DD

Scot_39

You appear to have more faith in Ofgem's independence.

And I can bet you the energy firms - when consulted -  will all say - we're not going to absorb it - or even they cannot absorb it.

And £50 may not seem much in the face of a £2500 EPG total bill   but if - as I am sure I have read a few times from others posting here - the resellers operate on a 2% margin/profit ? - that would wipe that out completely for PP customers.  And more than wipe it out at £2100 if CI forecasts for July correct.

But I suspect many PP are lower users - but again - maybe not all.

pochase

The part that is not clear for me is that the plan from what I read seems to be that this will be done in July by adjusting the EPG, and Ofgem will be asked to look into it for the time after the EPG. Forgive me if that has cjhanegd, I am not follwoing these plans closely.

If nothing has changed I have no idea how they want to do it. If it works this way, and we have the decreasing energy cost like we hope from July, there will be no EPG payments where they can do adjustments. Or will they just pay the difference between prepayment and DD to the suppliers as an EPG payment?

Scot_39

pochase said:

The part that is not clear for me is that the plan from what I read seems to be that this will be done in July by adjusting the EPG, and Ofgem will be asked to look into it for the time after the EPG. Forgive me if that has cjhanegd, I am not follwoing these plans closely.

If nothing has changed I have no idea how they want to do it. If it works this way, and we have the decreasing energy cost like we hope from July, there will be no EPG payments where they can do adjustments. Or will they just pay the difference between prepayment and DD to the suppliers as an EPG payment?

That seemed to be the upshot of the article I read on BBC.

EPG to Mar 24.Ofgem to plan for post EPG operation - from April 24.

Just like EPG - there is no reason why it couldn't say be seen as a discount on SC line - just as the current 17p/31.84p etc has been shown as a discount on my electric usage bill (but i appreciate different companies are showing the EBSS and the EPG differently - some much more obscurely than my experience with EOn - who are at leat on EPG - pretty explicit).

But that seems overkill.

But it could easily be made user transparent - Ofgem nil kWh could be set the same PP and DD - and the suppliers compensated per PP customer.  I guess we will know nearer the time.

In the end the govt and the suppliers can sort out exactly how they get the money - just as they have at the moment for unit rates.  Just because one no longer applies - doesn't mean the meter version - cannot run in it's place.

The EPG system is not stopping for unit rates - it's just we all hope - as predicted at least for Q3/4 - going to be capped at 0p per kWh (as energy price below EPG rates) . But if say CI forecasts were wrong - it is possible we might again get discounted rates - between July and next Apr.

It's just a forecast - and they have been wrong in the past - very wrong re oil and gas prices well into subsequent year (if not years) in past crisis.

In the end it doesn't really matter to the user - as long as it works.

But the thing I really don't understand - is the differences in the treatment of gas and electric - between the payment methods.