Market Stabilisation Charge licence condition
- Publication type:
- Consultation
- Publication date:
- Closing date:
- 15 May 2026
- Status:
- Open
- Topic:
- Electricity supply,
- Gas supply,
- Energy pricing rules
- Subtopic:
- Energy price cap
We are taking the technical step of consulting on a market stabilisation charge licence condition. This is to provide optionality to support market stability.
Consultation description
In a period of high and volatile prices, a sharp fall in wholesale prices can pose a risk to market stability. Suppliers can incur losses on energy which they have already bought to supply default tariff customers.
During the previous gas crisis we implemented a Market Stabilisation Charge (MSC) as a mitigation. This was a payment from a supplier who gained a customer to a supplier who lost a customer, to partially mitigate losses on energy purchases. We are now consulting on reintroducing the MSC licence condition, to provide the option of implementing an MSC at pace if required at a later point.
This consultation is not a process for considering whether or not to activate the MSC. If we were we minded to activate the MSC at a later point in time, this would be the subject of a future consultation and decision.
Who should respond
We welcome responses from interested stakeholders, particularly:
- domestic suppliers
- consumer groups and charities
- third party intermediaries
How to respond
Submit your response by 15 May 2026 by emailing priceprotectionpolicy@ofgem.gov.uk.