[vakeesan26]

Hi

Government scrapped the prepayment penalty from July 1st , which means prepayment customers cannot be charged more that DD rate

https://www.gov.uk/government/news/p...rgy-from-today

but Utilita still charging more for prepayment customers

https://utilita.co.uk/help/our-tariffs

can you please someone explain why ?


Thank you

[Rebecca]

@vakeesan26 Hi there!

Would you mind further elaborating on what you mean by 'penalty'?

Thanks 😊
Rebecca

[vakeesan26]

Hi @Rebecca

Based on the government announcement , the prepayment rate should not be higher than Direct Debit rate

please see link below
https://www.gov.uk/government/news/p...rgy-from-today

but Utilita still charging more than DD rate for prepayment customers

https://utilita.co.uk/help/our-tariffs

can you please explain it

Thank you

[vakeesan26]

Hi @Rebecca

any update please ?

Thanks

[Rebecca]

@vakeesan26 Hi there - let me take this away to our relevant department to examine.

I will update you accordingly.

Thanks,
Rebecca

[Rebecca]

@vakeesan26 Hi there! Please see official response:

In most instances, it will cheaper for customers to pay by prepayment. Utilita do not charge a standing charge and will have a first unit rate that covers the first 1- 2kWh’s of usage per day, depending on what tariff they are on and then after this a cheaper saver rate (2nd rate) will kick in. On our prepayment tariffs the first unit rate is slightly higher than a credit customer and the saver rate (2nd rate) is slightly cheaper than a credit customer, the reason the first rate is slightly higher is because in the price cap a standing charge for a prepayment customer is higher than a customer on DD. This will mean in some cases lower users on prepayment may end up paying more due to that but in most cases that would not be the case.