Energy price cap: additional debt costs review consultation
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closed date
Industry sector
Supply and Retail Market
Decision
We want to hear your views about adding a temporary allowance in the energy price cap for additional bad debt-related costs.
This consultation outlines:
- what debt-related costs are
- steps Ofgem has taken to ensure customers facing payment difficulties are treated fairly (for example, improved customer standards and tighter rules on prepayment meter installations)
- the case for a temporary adjustment, including our proposal to introduce a temporary adjustment to the cap in April 2024
- how we calculate the temporary adjustment, including our proposals on benchmarking costs using a tight approach (lower quartile)
- how we allocate costs across different customer types (for example, payment methods and fuels), including our proposals on recovering costs equally over Direct Debit and Standard Credit customers
- an assessment of the impact of our proposals
Who should respond
We want to hear views from:
- consumers
- consumer groups
- charities
- the energy sector, including suppliers
The feedback to this consultation will help inform our decision.
How to respond
Please send us your feedback by Wednesday 17 January 2024.
Use our Energy price cap: additional debt costs review consultation form to tell us your views.
Alternatively, you can email priceprotectionpolicy@ofgem.gov.uk if you want to send other documents such as PDFs (pdf), Word (doc) or Excel (xls) as part of your response.
Respond name
Dan Norton