This decision document sets out the framework that we will use to assess whether conditions are in place for effective competition in domestic supply contracts. It takes into account responses to the consultation we carried out on our proposed framework from 29 May to 9 July 2019.
The requirement for us to undertake a review into whether conditions are in place for effective competition in domestic supply contracts is set out in Section 7 of the Domestic Gas and Electricity (Tariff Cap) Act 2018. The first review must be published by 31 August 2020, and should include a recommendation on whether the cap on default tariffs should remain in place for 2021 or be removed. The Secretary of State will consider this review and make a decision by 31 October 2020. If the default tariff cap is extended into 2021, the process will be repeated in 2021 and, if needed, for a final time in 2022. The cap will cease to have effect at the end of 2023, at the latest.