Price cap – notice to delay COVID-19 true-up decision and work on debt-related costs



This letter sets out changes to the COVID-19 true-up and debt-related costs timeline:

  • COVID-19 true-up: we explain in this letter that we have decided to delay the COVID-19 true-up decision until February 2023 and that we will issue a consultation in the autumn to consult on our methodology, after we received feedback proposing an alternative method to calculate the true-up allowance.
  • Debt-related costs: we explain that we still intend to issue a consultation on debt-related costs but on a longer timeline than previously suggested and only if we find evidence that suggests there are material and systematic increase in these costs. This is to protect the interests of customers. We are continuing to monitor bad debt on an ongoing basis given the uncertainty regarding to the scale of the impact of high energy prices and government energy bill support package.