The current PPM cap was designed by the CMA as part of the Energy Market Investigation Remedies and was implemented by Ofgem in April 2017. The CMA further reviewed the cap in 2019 and altered the methodology, largely aligning it with the default tariff cap.
On 31 December 2020, the PPM cap will expire. When the PPM cap expires, PPM customers on a default tariff would be automatically covered by the default tariff cap. Before that happens, we must decide whether that level of protection is appropriate and if further measures are needed.
This consultation outlines our views on whether PPM customers need protection after the PPM cap expires and how we could provide that protection. We consider whether to replace the PPM cap, or adjust the default tariff cap so it protects PPM customers at a suitable level.
If you wish to respond to this consultation, please send your views to firstname.lastname@example.org by 8 April 2020.