Energy price cap: review of historical debt related costs
- Publication type:
- Consultation
- Publication date:
- Closing date:
- 16 June 2026
- Status:
- Open
- Topic:
- Energy pricing rules
- Subtopic:
- Energy price cap
We are seeking views on our review of the temporary debt related costs allowance added to the energy price cap between April 2022 and June 2025.
Consultation description
We introduced a temporary allowance to reflect the higher than expected debt costs that suppliers incurred between 1 April 2022 and 31 March 2024.
The temporary allowance was initially applied for 12 months but was extended for another 3 months before being replaced by a permanent allowance.
We are now reviewing the temporary allowance to check if it was set at the right level and if not whether any new adjustment to the price cap is needed.
To do this we have analysed data on suppliers' actual debt costs and compared them against the allowances they received.
This consultation focuses on the energy price cap and is not part of any wider actions being considered as part of our debt strategy.
Request models and data
As part of this consultation, we will make models and data available to those who would like to view them through a confidentiality ring. To view this information, you will need register your interest by emailing priceprotectionpolicy@ofgem.gov.uk. You will need to submit a draft compliance document and signed undertakings by Tuesday 21 April 2026.
Who should respond
We would like views from people who have an interest in how we set the debt-related costs allowance in the energy price cap. This includes:
- energy suppliers
- energy industry bodies
- consumer groups
- charities
- consumers
How to respond
Submit your response by 16 June 2026 by emailing priceprotectionpolicy@ofgem.gov.uk.
Consultation documents
- Debt-related costs true-up consultation document
- Disclosure notice
- Legal undertaking templates
- Compliance statement guidance