Levelisation Phase 1 review: next steps
Call for input
- Open
- Closed
- Publication date
- Closing date
- Industry sector
- Supply and Retail Market
We are seeking views on our proposed scope and evaluation framework for reviewing Levelisation Phase 1 between prepayment meter and Direct Debit standing charges.
This includes feedback on our draft request for information to energy suppliers. We are proposing to gather information on levelisation administration costs, fixed tariffs, and supplier experiences of the reconciliation mechanism.
Who should respond
We would like views from energy suppliers and anyone who has an interest in consumer protections such as consumer groups and charities.
Background
In February 2024, we made the decision to adjust standing charges between prepayment meter and Direct Debit customers (levelisation). This reduced standing charges for prepayment meter customers and increased them for Direct Debit customers under the energy price cap. This was implemented from April 2024.
In the decision, we committed to reviewing the impact and operation of Levelisation Phase 1 in the first year of implementation.
Our proposals
We are reviewing Levelisation Phase 1 and considering whether our approach meets the best interests of consumers.
We are proposing to issue a Request for Information to suppliers to gather data on the impact of levelisation. This will help us understand cost and competition impacts of the policy within the first year of implementation.
Why your views matter
Your feedback will help us finalise our evaluation framework and Request for Information, and conduct the Levelisation Phase 1 review.
How to respond
This call for input closes at 5pm on 6 February 2025. Send your feedback by email to standingcharges@ofgem.gov.uk.