Energy watchdog to go ahead with pre-payment meters price cap

Ofgem is to press ahead with proposals to introduce a price cap on pre-payment meters, the energy industry regulator has announced.

The watchdog's response follows a report published by the Competition and Markets Authority (CMA) in June - which set out ways in which the market could be improved for customers.

On Wednesday, Ofgem said it will work closely with suppliers to help "disengaged customers" who remain on expensive tariffs.

Chief executive Dermot Nolan said: "The CMA's final report is a watershed moment for industry and consumers and points the way to a fairer and more competitive future. I call on energy companies and consumer groups to seize this opportunity."

Ofgem has said the cap will aim to help the "most vulnerable and least likely to switch" and will save them around £75 a year from next April.

Next year the energy regulator said it will also pilot a database service - allowing rival suppliers to offer those on standard variable rates for three years or more better value deals.

The Big Six currently supply energy to just under 90% of the domestic customers in the UK and generate about 70% of total electricity output in Great Britain.

An E.ON spokesman said: "As with the publication of the CMA report, we will now review Ofgem's proposals in detail to fully understand the implications for our customers."