Price Cap - Decision on the potential impact of increased wholesale volatility on the default tariff cap
- Supply and Retail Market
- Generation and Wholesale Market
In November 2021, we consulted on whether to adjust the default tariff cap to reflect additional costs facing industry arising from the recent unprecedented rise in wholesale market prices and volatility. We have now considered stakeholders’ responses and are publishing our decision.
In this document, we set out our decision to adjust the cap in cap periods eight (April - September 2022) and nine (October 2022 – March 2023) to account for the additional costs incurred by suppliers as a result of rising wholesale market prices and volatility in cap period seven (October 2021 – March 2022).