We want your views on whether and how we should adjust the energy price cap for debt-related costs.
We have been carefully monitoring the development of debt-related costs relative to price cap allowances for an extended period of time.
This includes tracking the impact of exceptional developments such as the gas price crisis, and government interventions like the Energy Price Guarantee (EPG) and Energy bills support scheme (EBSS).
This policy consultation provides all interested stakeholders with an early opportunity to help shape Ofgem’s policy thinking around whether and how we should adjust the price cap.
Following a third Request for Information in July 2023, we have seen evidence of a gap between costs and the existing cap allowance in cap period 8-10a (April 2022 - June 2023). We are therefore issuing this policy consultation on whether we should adjust the price cap to account for these deviations between costs and allowance.
The consultation outlines the options on policy elements such as whether to adjust the allowance, and if so, what benchmarking approach to use, and how any allowance would be allocated across customers.
Update 15/12/2023: We have now published responses to this consultation below on this page.