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. Suppliers can price to the level or below the cap, but cannot charge more.
A separate price cap applies to customers on prepayment meter tariffs.
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 2019.
- Default tariff cap level: 1 October 2019 to 31 March 2020. Includes levels for the forthcoming restricted charging period and cost allowance methodologies.
- Default tariff cap level: 1 April 2019 to 30 September 2019. Includes levels for current restricted charging period and cost allowance methodologies.
- Default tariff cap table of public information. Outlines available inputs and sources used to calculate the default energy tariff cap models.
- CMA decision to amend PPM methodology. In July 2019, the CMA revised the methodology, to better reflect the costs incurred in delivering energy services to prepayment customers.
- Guidance on derogation requests for renewable tariffs. Granted derogations can be found in the publications feed below.
- Capacity market allowance in the default tariff cap.
When will the Default Tariff Cap end?
The cap will be in place until at least the end of 2020. The government will decide whether to extend the cap beyond this, up to a maximum of 2023.
We 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.
- Domestic Gas & Electricity (Tariff Cap) Bill. This put in place a requirement for Ofgem to cap default energy tariffs to 2020.
- Ofgem decision on the design and implementation of the Default Tariff Cap. This decision followed a consultation process which started in March 2018.
Further publications and outputs relating to the development of the cap can be found in the publications feed below.
If you have technical or policy questions about the cap, please contact us at firstname.lastname@example.org
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.