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The Chancellor announced on 15 March 2023 that the Energy Price Guarantee (EPG) would be used to align costs for comparable prepayment meter (PPM) and direct debit customers, ensuring that those on PPMs no longer pay a premium for their energy costs.

Between July to September 2023, the PPM premium is removed by providing PPM customers a discount on unit rates.

From 1 October 2023 there will be a change in how the discount is paid. Instead of being delivered via a discount to unit rates, it will be delivered via a discount to the standing charge.

The PPM standing charge discount will generally not bring PPM standing charges into direct alignment with standing charges for those paying by Direct Debit. Under Ofgem鈥檚 price cap, PPM customers often receive a lower unit rate cap than direct debit customers. The Energy Price Guarantee standing charge discount is calculated to bring overall costs into alignment for a typical PPM customer who will save around 拢40 per year. A typical PPM customer鈥檚 usage is calculated based on Ofgem鈥檚 鈥榣ow鈥� level of energy use ().

Non-PPM households will continue not to receive an EPG discount on their gas and electricity bills from 1 October. This is because the Ofgem price cap is lower than the Energy Price Guarantee level, meaning households will pay the lower rate set by the price cap.

The tables below set out the maximum figures for tariffs subject to Ofgem鈥檚 price cap for October to December 2023. The EPG discount is incorporated into the PPM gas and electricity standing charge numbers.

Other payment method

Variable rate

Charge Restriction Region	Electricity: Single-Rate Metering Arrangement p/kwh ex VAT	Gas p/kwh ex VAT
North West	25.92	6.57
Northern	25.31	6.49
Yorkshire	25.26	6.50
Northern Scotland	25.96	6.52
Southern	26.20	6.66
Southern Scotland	25.60	6.52
N Wales and Mersey	26.91	6.60
London	27.07	6.57
South East	26.76	6.59
Eastern	26.60	6.46
East Midlands	25.49	6.44
Midlands	25.57	6.49
Southern Western	25.89	6.76
South Wales	26.14	6.71
GB Average	26.05	6.56

Standing charge

Charge Restriction Region	Electricity: Single-Rate Metering Arrangement p/day ex VAT	Gas p/day ex VAT
North West	49.3	28.2
Northern	54.7	28.2
Yorkshire	53.4	28.2
Northern Scotland	56.6	28.2
Southern	47.6	28.2
Southern Scotland	59.1	28.2
N Wales and Mersey	59.3	28.2
London	36.7	28.2
South East	45.3	28.2
Eastern	41.9	28.2
East Midlands	48.3	28.2
Midlands	51.8	28.2
Southern Western	55.9	28.2
South Wales	51.6	28.2
GB Average	50.8	28.2

Pre-payment meter

Variable rate

Charge Restriction Region	Electricity: Single-Rate Metering Arrangement p/kwh ex VAT	Gas p/kwh ex VAT
North West	25.50	6.34
Northern	24.90	6.29
Yorkshire	24.85	6.30
Northern Scotland	25.55	6.31
Southern	25.78	6.44
Southern Scotland	25.19	6.31
N Wales and Mersey	26.49	6.36
London	26.65	6.35
South East	26.34	6.37
Eastern	26.18	6.28
East Midlands	25.07	6.23
Midlands	25.16	6.26
Southern Western	25.48	6.60
South Wales	25.73	6.47
GB Average	25.63	6.35

Standing charge

Charge Restriction Region	Electricity: Single-Rate Metering Arrangement p/day ex VAT	Gas p/day ex VAT
North West	51.4	32.6
Northern	56.8	32.6
Yorkshire	55.4	32.6
Northern Scotland	58.6	32.6
Southern	49.7	32.6
Southern Scotland	61.2	32.6
N Wales and Mersey	61.3	32.6
London	38.8	32.6
South East	47.4	32.6
Eastern	44.0	32.6
East Midlands	50.4	32.6
Midlands	53.8	32.6
Southern Western	57.9	32.6
South Wales	53.7	32.6
GB Average	52.87302	32.57598