Default Tariff Cap - information for suppliers

The Default Tariff Cap came into force on 1 January 2019. The cap is temporary, and applies to tariffs for all customers on standard variable and default energy tariffs. In August 2020, Ofgem announced that the Default Tariff Cap would continue to protect default prepayment meter customers after the CMA Prepayment Meter Price Cap expired at the end of 2020. Suppliers can price to the level or below the cap, but cannot charge more.

When is the Default Tariff Cap updated?

Ofgem adjusts the level of the cap twice a year - in February and August to apply in April and October respectively - to reflect the estimated costs of supplying electricity and gas to homes in the next six-month summer or winter period. 

The next price cap period begins on 1 April 2021.

Industry guidance on applying the Default Tariff Cap 

When will the Default Tariff Cap end?

Ofgem will continue to monitor the energy market closely while the Default Tariff Cap is in place and produce an annual report on the competitiveness of the energy market. This annual report will include a recommendation to government on whether they should end or extend the price cap at the end of the year. The government will decide whether to extend the cap for a year. The cap cannot be extended beyond the end of 2023.

Background

Further publications and outputs relating to the development of the cap can be found in the publications feed below.

Need help?

If you have technical or policy questions about the cap, please contact us at retailpriceregulation@ofgem.gov.uk

If you are an energy customer looking to find out your capped tariff price, please contact your energy supplier. You can find their contact information on an energy bill, or see Who is my energy supplier? You can also find answers to frequently asked questions on our consumer FAQ page, or see our energy price caps guide

Publications and updates

  • Published: 18th Dec 2018
  • Charts and data, Guidance
  • 2 Associated documents
View the energy price cap levels set for default energy tariffs (including standard variable tariffs), alongside worked examples of capped tariff calculations.

  • Published: 6th Nov 2018
  • Decisions
  • 23 Associated documents
Our decision on the methodology to implement a Default Tariff Cap and the associated Licence Conditions.

  • Published: 6th Nov 2018
  • Guidance
  • 4 Associated documents
This document sets out guidance on requesting a derogation from the default tariff cap for renewable tariffs. We are also publishing the derogation application form and cost sheets that needed to be completed to apply for a derogation.

  • Published: 5th Oct 2018
  • Agendas, minutes and presentations
  • 2 Associated documents
The presentation and Q&A from the webinars on the minded to position held on the 27 September 2018.

  • Published: 17th Sep 2018
  • Open letters and correspondence
  • 4 Associated documents
Ofgem is running a Disclosure Room as part of our Statutory Consultation on the Default Tariff Cap. The attached documents detail the process for access.

  • Published: 6th Sep 2018
  • Closed: 8th Oct 2018
  • Consultations and responses
  • 63 Associated documents
A statutory consultation setting out our proposals on the methodology to implement a Default Tariff Cap and the associated Licence Conditions.

  • Published: 29th Aug 2018
  • Open letters and correspondence
  • 1 Associated documents
Default Tariff Cap: Further information statutory consultation and notice of intent to open a Disclosure Room to allow review of data underlying the cap

  • Published: 16th Aug 2018
  • Open letters and correspondence
  • 1 Associated documents
This letter gives an update on the timetable for our statutory consultation on the government’s default tariff cap, and the associated licence conditions.

  • Published: 20th Jul 2018
  • Decisions, Open letters and correspondence
  • 1 Associated documents
This letter provides an update on our timetable for the default tariff cap and sets out our decision not to proceed with the vulnerable safeguard tariff.

  • Published: 15th Jun 2018
  • Agendas, minutes and presentations
  • 0 Associated documents
Ofgem is seeking feedback from smaller suppliers on developing a design for price protection for consumers on standard variable and default tariffs.

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