On 26 February 2018, the Government introduced proposals for legislation to Parliament, to introduce a temporary tariff cap for customers on Standard Variable (SVT) and default tariffs. This proposed legislation creates a new statutory role for Ofgem to deliver this measure for Government. Ofgem will have a new duty to design and implement the tariff cap (the ‘default tariff cap’).
This publication follows the policy consultation published on 25 May 2018. The documents outline the draft licence conditions for how we may implement the default tariff cap. We are consulting on the specific elements of the licence that describe the mechanics of how we intend to implement and monitor the default tariff cap. Further drafting is provided for transparency that illustrates how we might implement our ‘minded-to’ positions where these are indicated in the policy consultation.
We have also published a separate suite of documents that provide an initial view of the annexes to the licence condition. The annexes take the form of models showing the calculations that will be used to update the allowances for wholesale, network, policy and smart costs. This level of detail has been provided for transparency purposes and although does not form part of the consultation as set out above, we are taking this opportunity to provide stakeholders with early sight of how we might take the ‘minded-to’ positions forward in practice.
The status of this consultation has been changed to “Closed (with decision)” as the consultation period has passed. For more information, please see our consultation policy.