In this letter, we are consulting on the approach to calculating the wholesale additional risk allowance within the default tariff cap methodology for the charge restriction period 9b (January – March 2023). This letter sets out the background to the issues and the detail of the approach we applied when determining the price cap levels for the charge restriction period 9a (October – December 2022), announced on 26 August 2022, and provides the opportunity for comment on the use of this approach going forwards.
If you wish to respond to this letter, please send your views to retailpriceregulation@ofgem.gov.uk by 24 October 2022