Price Cap - Decision on reflecting prepayment End User Categories in the default tariff cap
Decision
- Publication date
- Industry sector
- Supply and Retail Market
In November 2021, we consulted on our proposals to amend the licence conditions and our methodology to introduce the use of End User Categories (EUCs) specific to prepayment meter (PPM) customers. EUCs determine the demand attributed to customers paying by a certain payment method and allow for a more granular view of the costs associated with PPM customers. We have now considered stakeholders’ responses and are publishing our decisions.
We have decided to proceed with the proposed changes to the wholesale cost and network cost methodologies to account for the PPM EUCs. We are also amending licence condition 28AD to reflect these changes. In addition, we have decided to update the UIG (Unidentified Gas) allowance for both PPM and non-PPM payment types on a more frequent basis.