In November 2019, the High Court concluded that Ofgem should reconsider the wholesale allowance for the first cap period of the default tariff cap.
We published a statutory consultation in May 2020 which set out our approach. Having considered stakeholders’ responses, we have now published our decision.
Our decision sets out our methodology and resulting level to adjust the default tariff cap in the fifth cap period (1 October 2020 to 31 March 2021).
Alongside the main decision document, we have also published:
- a licence modification notice for changes to standard licence condition 28AD of the gas and electricity supply licence conditions;
- an annex model (Annex 8) used to calculate the level of the Adjustment Allowance; and
- an updated default tariff cap model.