Policy Compass
Energy pricing rules

Price cap and Market Stabilisation Charge changes

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Ofgem recognises the level of backwardation costs facing suppliers in Winter 2022. As we set out in the Medium Term Price Cap Reform consultation we intended on ensuring that these costs are addressed - either by designing them out or providing an allowance.

We are currently consulting on changes to the Market Stabilisation Charge (MSC) parameters. Later in the summer we will assess whether there is a case for extension of the MSC.

Main document

[Price Cap and Market Stabilisation Charge update [PDF, 721.27KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-04/Supplier%20Letter%20-%20Price%20Cap%20and%20MSC%20Changes%2027%20May%202022.pdf)

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