A local authority-owned energy company has accused other providers of acting against the spirit of Ofgem’s new prepayment price cap, which came into force on 1 April.
The managing director of Bristol Energy, Peter Haigh, said he was “disappointed” that many other suppliers have raised their prices to meet the cap, rather than giving customers the best possible deal.
The cap will vary for electricity and gas, by meter type and region.
It has been introduced following a two-year investigation of the energy market by the Competition and Market Authority.
In February, Ofgem claimed the cap, which will be in place until the end of 2020, will save prepayment customers an average of £80 a year.
“Prepayment meter customers have been unfairly penalised for too long, so I’m pleased that Ofgem has introduced a price cap,” said Haigh.
“But I’m disappointed that many suppliers have put their prices up to meet this cap, rather than choosing to give their customers the best possible deal, which is surely what the cap was brought in to encourage.
“Let’s make decisions for the benefit of our customers, not our balance sheet, particularly for customers who are more likely to be living in vulnerable circumstances,” he added.
Bristol City Council launched Bristol Energy in February 2016 to be a “force for social good”.
A spokesman for Ofgem said pre-pay households “can have peace of mind that the price they pay reflects the underlying costs of supplying their energy thanks to the price cap”.
“The cap will prevent suppliers pricing above the cap and we would hope that some suppliers price below it,” the spokesman added.
“The cap will deliver significant savings to pre-payment gas customers in particular – around £80 for those with typical consumption.”