Energy price cap methodology: group correction factors
- Consultation status:
- Open
- Publication date:
- Closing date:
- Topic:
- Energy pricing rules
- Sub Topic:
- Energy price cap
- Industry sector:
- Supply and Retail Market
Related links
We are seeking views to make sure we continue to account for losses in the electricity system through the price cap accurately.
Consultation description
We are considering how best to ensure the treatment of electrical losses in the price cap continues to accurately reflect the relevant parameters used in settlement. This is because group correction factors have increased since the cap was introduced.
Group correction factors are used to correct residual discrepancies between energy entering the distribution system and energy allocated to suppliers. As a result of the increase, our existing assumptions no longer reflect actual system losses.
We are reviewing the assumptions behind these electrical loss factors and proposing a change to include an adjustment for group correction factors, so we can better account for this issue.
Who should respond
We would like views from people with an interest in the settlement process, including suppliers, and industry bodies.
How to respond
Submit your response by 26 September 2025 by emailing retailpriceregulation@ofgem.gov.uk.