Statutory consultation for a vulnerable customer safeguard tariff
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
- Publication date
- Closing date
- Industry sector
- Supply and Retail Market
- Decision
On 3 July 2017 we announced that we were launching work on measures to protect vulnerable consumers on high priced energy deals. The price difference between the average Standard Variable Tariff (SVT) default deal from the six largest suppliers and the cheapest tariff in the market recently reached over £300. Vulnerable consumers are more likely to find themselves on a SVT deal, and because of their circumstances, can suffer more harm as a result.
We want to ensure protection is in place for vulnerable consumers this winter, when energy bills are typically highest. To allow us to move quickly, we are proposing to extend the existing safeguard tariff in place for consumers on a prepayment meter. This safeguard tariff would apply to customers receiving the Warm Home Discount from a supplier who is required to participate in this government scheme.
We expect that the safeguard tariff will be in place by February 2018 and provide direct assistance to around one million households. This will provide some short term relief for vulnerable customers, ahead of government plans for an energy price cap being realised.
Responses to this statutory consultation should be sent to vulnerability@ofgem.gov.uk by 9am, 13 November 2017.