Proposed methodology for Electricity Bill Discount Scheme cost allowance
- Publication type:
- Consultation
- Publication date:
- Last updated:
- Closed date:
- Status:
- Closed (with decision)
- Topic:
- Consumer protection,
- Energy pricing rules
- Subtopic:
- Energy price cap
- Scheme name:
- Bill discount scheme
We would like views on adding a new cost allowance into the energy price cap for the cost of the Bill Discount Scheme.
Details of outcome
We have decided to proceed with implementing a Bill Discount Scheme cost allowance in the price cap methodology from 1 April 2027.
Our decision document considers responses received to the consultation and sets out the methodology for calculating the allowance. We have used this feedback to inform our final decision on how we should implement and update the allowance.
Read the full outcome
Original consultation
We are proposing a new methodology for a cost allowance in the energy price cap to reflect the costs energy suppliers will incur as a result of the new Bill Discount Scheme.
The scheme is a government scheme that will give ongoing electricity bill discounts to households living near new or significantly upgraded transmission network infrastructure.
Note: some of the files attached below are not fully accessible. If you require an alternative format, please contact retailpriceregulation@ofgem.gov.uk.
Who should respond
We would like views from people with an interest in the energy price cap (default tariff cap) level. We particularly welcome responses from:
- energy suppliers
- other interested industry parties
- consumer groups
- charities
- energy bill payers
All updates
26 August 2026 published consultation outcome and added decision document for the Proposed methodology for Electricity Bill Discount Scheme cost allowance. We expect this allowance to take effect from 1 April 2027.