Letter to the Competition and Markets Authority responding to its invitation to comment on whether it should review the prepayment meter energy price cap.
In 2016, the Competition and Markets Authority introduced a cap on the prices that consumers with prepayment meters pay for their electricity and gas. It envisaged that this would last until 2020, at which point it thought that the roll-out of smart meters would render the cap redundant. But it recognised that smart meters might be rolled out more quickly or slowly than it expected, and suggested that it should review the situation in January 2019. In December 2018 it invited people to comment on whether the January 2019 review is still needed. This is our response [ 290 kb], in which we argue that it is.