Consultation on Technical changes to the Market Stabilisation Charge (MSC) model indexation methodology to reflect our decision to extend the MSC beyond 31 March 2023
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closing date
Decision
Our decision, published on 3 February 2023, to extend the MSC beyond 31 March 2023[1] means that we are required to implement a version of the MSC model for use during the extension period. Today we are consulting on technical changes to the Market Stabilisation Charge (“MSC”) model to replace the existing 7-1-6 / 3-1.5-3 transitional indexation arrangement (“Transitional Indexation Approach”) with a 3-1.5-3 indexation methodology that reflects the move to quarterly cap updates. This is required to maintain consistency with the wholesale methodology used in setting the price cap from cap period 10a onwards.
In the interests of transparency, we have also included alongside this consultation, an updated worked example of the MSC model which reflects the changes proposed in our consultation.
We would like views from people with an interest in the domestic retail energy supply market. We particularly welcome responses from energy suppliers, consumer groups and charities. We would also welcome responses from other stakeholders and the public.