Consultation on updating the allowance for the Shetland Cross Subsidy in the default tariff cap

This letter outlines our proposed changes to the price cap model set out in Annex 4 to standard licence condition (SLC) 28AD of the electricity licence. This comes as a result of a government policy change to how capital expenditure in Shetland is cross subsidised among consumers. If we decide to make these changes, they will come into force on 1 April 2021.

If you wish to respond to this letter, please send your views to retailpriceregulation@ofgem.gov.uk by 4 January 2021.