Future of Market Stabilisation Charge after March 2024

Guidance

Publication date

Industry sector

Supply and Retail Market

The Market Stabilisation Charge (MSC) and the Ban on Acquisition-only Tariffs (BAT) are set to expire on 31 March 2024. This follows a decision to extend both measures, made in February 2023.

Following a review of current market conditions, the MSC’s evolving impact on competition in the market and the effect of other policy measures on supplier resilience, this open letter sets out our intention to allow the MSC to expire at the end of its current extension period in March 2024. We are notifying stakeholders now having regard to responses to our November 2022 statutory consultation around stakeholders needing sufficient notice prior to changes being made to the MSC.

We intend to conduct further analysis on the BAT’s role before setting out our position on the option of extending it beyond March 2024. We provide further detail on this in our open letter and will publish a further letter inviting views from interested parties shortly.