Ofgem has updated the level of the prepayment price cap, known as safeguard tariff, which promises to cut bills for around 3 million households by up to £19 a year based on average consumption. 

The change, which takes effect on 1 October, will reduce the level from about £1,067 to £1,048 for a dual fuel prepayment customer who uses a typical amount of energy.

This is part of Ofgem’s programme to deliver a juster, smarter and more competitive market for all consumers.

Ofgem has revealed previously that competition among suppliers for prepayment customers is less developed than for those who pay by direct debit, cash or cheque. This means that there are fewer tariffs available and they are generally more expensive. 

Learn more about what this changes means at https://www.ofgem.gov.uk/publications-and-updates/ofgem-cuts-prepayment-meter-safeguard-tariff