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 October 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: 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.

  • Published: 7th Dec 2017
  • Decisions
  • 3 Associated documents
Decision to modify the standard conditions of the supply licences to regulate charges for domestic customers who receive the Warm Home Discount (WHD).

  • Published: 11th Oct 2017
  • Closed: 13th Nov 2017
  • Consultations and responses
  • 35 Associated documents
A statutory consultation that outlines our proposal to introduce a temporary safeguard tariff for consumers who are at a higher risk of being vulnerable.

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