Energy price cap methodology: contracts for difference review
- Publication type:
- Call for input
- Publication date:
- Closed date:
- Status:
- Closed
- Topic:
- Energy pricing rules
- Subtopic:
- Energy price cap
We are seeking input on whether we should consider making changes to the contract for difference allowance methodology in the default tariff cap.
Details of outcome
We received 11 responses. The feedback we received, together with further technical engagement with the industry and our subsequent analysis, has informed our view in this area. We consider that there is a case for changes to the current methodology of the Contracts for Difference cost allowance in the default tariff cap.
We are consulting on our proposed changes to improve accuracy of the allowance. You can read our consultation at Energy price cap: proposed changes to the Contracts for Difference cost allowance.
Call for input responses
Original call for input
Call for input description
In this call for input, we outline our views on points raised by suppliers and other organisations from our recent engagement. We are seeking clear evidence on whether we should make changes to the methodology for setting the contracts for difference allowance in the default tariff cap. We set out some questions we would like views on but welcome any wider views too.
This review is part of our wider review of the wholesale cost allowance in the default tariff cap, as outlined in our 2025 and 2026 programme of work.
Who should respond
We would like views from people who have an interest in how we set the additional wholesale allowances in the energy price cap. This includes:
- energy suppliers
- energy industry bodies
- consumer groups
- charities