Price Cap – Decision on removal of the cap end date from licence conditions
Decision
Publication date
Industry sector
Supply and Retail Market
The price cap was set out in legislation through the Domestic Gas and Electricity (Tariff Cap) Act 2018, to protect current and future default tariff customers. The price cap was originally legislated to end in December 2023. Last year, the Energy Prices Act 2022 removed this end date, to enable the cap to support the operation of the Energy Price Guarantee, and to provide a more flexible mechanism for ending the cap.
In our statutory consultation of 24 March 2023, we proposed modifications to Standard Licence Condition (SLC) 28AD and the accompanying cap models, to reflect these legislative changes.
This document explains our decision to modify electricity and gas supplier licences and the models annexed to them. Modifications will come into effect from 1 July 2023 (cap period 10b).