This policy consultation sets out our initial thinking on how the increased wholesale volatility may have impacted suppliers’ costs, whether to update the default tariff cap (“the cap”) methodology, and if so, how.
The focus of this consultation is on options for near-term changes that could be made to ensure that the price cap is not materially different than the efficient costs facing suppliers. We also signal in this consultation our intention to conduct a wider ranging review of the cap shortly, which will consider more fundamental and longer-term price cap reforms.
If you wish to respond to this consultation, please send your views to
retailpriceregulation@ofgem.gov.uk by Friday 17 December 2021.
Update 04/02/2022: We have now published responses to this consultation on this webpage.