Some experts have said Ofgem’s plans are a good idea while others believe it will be a detriment to household finances.
Tony Jordan of energy consultants Auxilione said: “This is all part of Ofgem’s plan to level out the price cap so that direct debit and prepayment customers pay the same amount for their energy.
“Whilst prepayment customers are typically on these plans to help them manage household budgets and avoid getting into debt, there are plenty of direct debit customers that now have similar issues in managing debt levels.
“Therefore it is a fair way to ensure the market as a whole is kept stable, irrespective of how a customer pays for their energy.”
However, others have called for a total ban on the price cap.
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