Energy price cap: proposed changes to the Contracts for Difference cost allowance
- Publication type:
- Consultation
- Publication date:
- Closing date:
- 10 September 2026
- Status:
- Open
- Topic:
- Electricity supply,
- Energy pricing rules
- Subtopic:
- Energy price cap
We are seeking views on our proposal adjust the Contracts for Difference allowance in the energy price cap, to account for differences between forecast and actual CfD generation volumes.
Consultation description
We are seeking views on our proposal to change to the methodology of the Contracts for Difference (CfD) allowance in the energy price cap, to improve accuracy of the allowance.
We propose to introduce a volume reconciliation, reflecting differences between the forecast of CfD generation volumes used to set our allowance, and actual CfD generation. We propose to implement the change from April 2027.
We are also seeking views on a potential simplification of the methodology to set the CfD allowance.
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
How to respond
Submit your response by 10 September 2026 by emailing priceprotectionpolicy@ofgem.gov.uk.