We are seeking views on our ideas about approaches to benchmarking energy suppliers' costs. As part of our operating costs review, we’re considering how to set a single allowance in the energy price cap using data from different suppliers.
We published our price cap call for input on the operating cost allowances review in May 2023. It outlined how we intend to consider whether publishing working papers on specific policy areas would be beneficial before continuing with the formal consultation process.
The paper focuses on two main areas, they are:
- how we could set a benchmark approach to achieve various outcomes
- initial ideas on developing a framework for choosing between a range of potential benchmarking options
How to respond
Submit your comments by 8 November 2023.
We will use responses to our call for input, the working paper and the data we collect through our request for information to analyse the impact of different benchmarking options. This will feed into our policy consultation early next year.