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: 15th Jun 2018
  • Closed: 29th Jun 2018
  • Consultations and responses
  • 8 Associated documents
An early sight of the draft licence conditions for how we may implement the default tariff cap and separate documents providing an initial view of the annexes.

  • Published: 7th Jun 2018
  • Agendas, minutes and presentations, News and blogs
  • 0 Associated documents
Join us at Ofgem's default tariff cap workshops on Tuesday 12 and Wednesday 13 June 2018.

  • Published: 25th May 2018
  • Closed: 25th Jun 2018
  • Consultations and responses
  • 44 Associated documents
This consultation outlines our proposals for how we may design and implement the default tariff cap. This follows publication of five working papers.

  • Published: 19th Apr 2018
  • Open letters and correspondence
  • 11 Associated documents
This is the fourth working paper relating to the default tariff cap. It discusses environmental and social obligations costs under the default tariff cap.

  • Published: 19th Apr 2018
  • Open letters and correspondence
  • 10 Associated documents
This paper seeks views and evidence on the updated competitive reference price approach to setting the initial level of the default tariff cap.

  • Published: 9th Apr 2018
  • Open letters and correspondence
  • 11 Associated documents
This paper discusses our thinking on including a headroom allowance as part of the design of the default tariff cap.

  • Published: 28th Mar 2018
  • Open letters and correspondence
  • 12 Associated documents
This paper seeks views and evidence on the market basket approach to setting the level of the default tariff cap.

  • Published: 12th Mar 2018
  • Open letters and correspondence
  • 16 Associated documents
The first in a series of working papers explaining how our thinking on the design of the default tariff cap is evolving as we gather views and evidence.

  • Published: 6th Mar 2018
  • Consultations and responses, Open letters and correspondence
  • 2 Associated documents
This open letter provides an update on our plans for retail energy price caps.

  • Published: 20th Dec 2017
  • Closed: 31st Jan 2018
  • Consultations and responses
  • 26 Associated documents
Providing financial protection to more vulnerable consumers.

Pages