Price Cap – Removal of the cap end date from licence conditions
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closed date
Industry sector
Supply and Retail Market
Licence type
- Electricity Supply Licence
- Gas Supplier Licence
Decision
The price cap was introduced to protect current and future default tariff customers and was originally legislated to end in December 2023. Last year, the government updated the legislation to remove the cap end date, ensuring that the cap is maintained throughout the duration of Energy Price Guarantee (EPG), and to provide a more flexible mechanism for ending the cap.
In this consultation we propose to modify Standard Licence Condition (SLC) 28AD in the gas and electricity supply licences to reflect changes made in the Energy Prices Act 2022. Changes need to be made to accurately reflect the new legislation, to prevent them from ending prematurely, and to avoid any confusion from potential differences between legislation and SLCs and models.
We welcome stakeholder views on the proposals outlined in this consultation and may adapt our proposals in response to feedback received. We request that stakeholders send their views by 3 March 2023 by email to Retailpriceregulation@ofgem.gov.uk.
Respond name
Dan Norton