Working paper- environmental and social obligations costs under the default tariff cap

Correspondence and other

Publication date

Industry sector

Supply and Retail Market

On 26 February 2018, the Government introduced proposals for legislation to Parliament, to introduce a temporary tariff cap for customers on Standard Variable (SVT) and default tariffs. This proposed legislation creates a new statutory role for Ofgem to deliver this measure for Government. Ofgem will have a new duty to design and implement the tariff cap (the ‘default tariff cap’).

This is the fourth of our working papers relating to the default tariff cap. In this paper, we review the suppliers’ social and environmental and social obligations in more detail, and provide an update on our emerging thinking on a selection of issues relating to how these costs could be treated: both when setting the initial level of the default tariff cap, and when updating it over time.