Price Cap – working paper on the true-up process for COVID-19 costs
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closing date
Industry sector
Supply and Retail Market
In our February 2021 decision we introduced an adjustment in the default tariff cap to account for an initial estimate of additional bad debt as a result of COVID-19. The “true-up” aims to adjust this initial estimate to reflect the final costs once they are fully known. This working paper is a step towards developing our approach to the true-up.
This working paper focuses on the options for the data source for bad debt that we could use to calculate the true-up. This working paper also provides stakeholders with an update on when we aim to implement the first true-up.
We are seeking written comments by 14 July 2021.
Respond name
Leonardo Costa, Head of Price Cap Policy