Default tariff cap: decision - overview


Publication date

Industry sector

  • Supply and Retail Market
  • Generation and Wholesale Market

On 19 July 2018, the Domestic Gas and Electricity (Tariff Cap) Act came into force. This legislation requires Ofgem to design and  implement a temporary cap on standard variable tariffs and fixed term default tariffs (‘default tariffs’).

On 6 November 2018 we published our final decision on the design and implementation of the default tariff cap. This includes how we propose to set the initial level of the cap and how we propose to periodically adjust the cap up and down, to reflect underlying cost changes. This follows publication of our working papers, our May consultation on the design of the cap and our statutory consultation.

Our decision also includes guidance on the process for requesting a derogation from the default tariff cap for renewable tariffs and explains our plans to move those consumers on the Warm Home Discount safeguard tariff to the default tariff cap.

We have published the accompanying statutory notice and licence conditions.