Fair By Design responds to Ofgem's call for evidence on prepayment meter rules

Fair By Design, an independent organisation, said on 13 February 2023 that it had responded to Ofgem's call for evidence on prepayment meter rules and protections for domestic consumers¹. The response was submitted to the energy regulator's consultation and published on the organisation's website¹.

The organisation said its response set out several positions on how energy costs and protections should work for low-income households¹. It called for more targeted bill support, stating: "We emphasis the need for more targeted bill support, a social tariff."¹ On standing charges, it said: "We support reforming standing charges but urge Ofgem to ensure changes genuinely benefit low-income households."¹ It also said it supported expanding the Warm Home Discount and urged further action to reach more households in need¹.

On Ofgem's role, Fair By Design said: "Ofgem's primary duty should be protecting consumers, this should take priority over other objectives."¹ It added: "The way people pay for their energy should not lead to an increase in costs."¹ The organisation also said it welcomed Ofgem's proposal for a debt relief scheme, and that its response focused on the positive impact of the ban on acquisition tariffs¹.

The response was published under the organisation's consultation responses and energy categories¹. Fair By Design said it responds to consultations in line with its goal of eliminating poverty premiums¹. It urged Government and Ofgem to implement measures that make energy affordable for low-income households¹.

The call for evidence concerned prepayment meter rules and protections for domestic consumers¹. Ofgem has not published the outcome of that call for evidence, and no date has been reported for any decision or rule change arising from it¹.

Why it matters for households

Prepayment meters are a way households pay for gas and electricity, and the rules around them, and the protections attached to them, affect what people on prepayment pay and what happens if they fall behind¹. Fair By Design's response argues that how people pay should not raise their costs, and that support should be targeted at low-income households through a social tariff¹. It also raises standing charges, the fixed daily amounts added to bills regardless of use, and says reform should genuinely benefit low-income households¹. The Warm Home Discount, a scheme that reduces bills for eligible households, is another area where the organisation says expansion should go further¹. The response also backs a debt relief scheme proposed by Ofgem¹. The practical effect of the call for evidence depends on what Ofgem decides; no changes to prepayment meter rules or protections have been reported as resulting from it¹.

What happens next

No next steps, timetable or decision date have been reported¹. Ofgem's call for evidence on prepayment meter rules and protections for domestic consumers is a matter for the regulator, and the outcome has not been published¹.