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 available to those affected by consultation's proposals via a confidentiality ring. Relevant parties can also appoint external legal and/or economic advisers to whom we will also make the data available. The Disclosure Notice published alongside this consultation sets out the steps those interested in viewing this information will need to complete by Tuesday 21 April 2026. As a first step please register your interest by emailing priceprotectionpolicy@ofgem.gov.uk.
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.