In the latest update from Ofgem, the price difference between the cheapest prepayment tariff and the cheapest standard credit tariff has grown to £357.
Traditionally, direct debit customers have been offered the most affordable tariffs, followed by standard credit customers and those using prepayment meters.
The Energy Price Guarantee (EPG), which was implemented in October 2022, played a role in influencing the adjustments to the cheapest tariffs among the large suppliers.
Between April and June 2023, the EPG set an average limit of £2,545 for prepayment customers and £2,702 for standard credit customers.
But from 1st July 2023, a new lower price cap level came into effect, replacing the EPG and bringing about changes to the tariffs.
During June 2023, the overall cheapest tariff for direct debit customers decreased to £1,975, thanks to a new fixed tariff offered by Utility Warehouse bundled with other services.
Meanwhile, the cheapest prepayment tariff remained steady at £2,475 during the same period.
As a result of Utility Warehouse’s new offer, the cheapest standard credit tariff also saw a decrease, reaching £2,118.
