Policy Compass
Energy pricing rules

Price Cap – Consultation on the process for updating the Default Tariff Cap methodology and setting maximum charges

Overview of 19th November 2021 Price Cap consultations

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At present, while we have the ability to make changes to the default tariff cap (‘cap’) methodology and annex models, we cannot implement these changes outside of our six-month review cycle without a license modification. This consultation sets out proposals to modify the licence to introduce an ability for us to amend the cap outside of our routine six-month cycle, where exceptional circumstances (which are rare and would have high impacts without urgent action) occur. We consider this is important to enable us to manage the risks to the market and customers resulting from the interaction of the cap and changing market circumstances in the future.

We are seeking written responses by 17 December 2021.****

Update 04/02/2022: We have now published responses to this consultation below on this page.

Respond name

Leonardo Costa

Respond email

retailpriceregulation@ofgem.gov.uk

Main document

[Price Cap – Consultation on the process for updating the Default Tariff Cap methodology and setting maximum charges [PDF, 141.75KB]

](https://www.ofgem.gov.uk/sites/default/files/2021-11/Price%20Cap%20-%20Consultation%20on%20the%20process%20for%20updating%20the%20Default%20Tariff%20Cap%20methodology%20and%20setting%20maximum%20charges.pdf)

Subsidiary documents

[Price Cap – Consultation on the process for updating the Default Tariff Cap methodology and setting maximum charges - Draft notice [PDF, 194.63KB]

](https://www.ofgem.gov.uk/sites/default/files/2021-11/Price%20Cap%20-%20Consultation%20on%20the%20process%20for%20updating%20the%20Default%20Tariff%20Cap%20methodology%20and%20setting%20maximum%20charges%20-%20Draft%20notice.pdf)

Response documents

[Stakeholder responses [ZIP, 3.45MB]

](https://www.ofgem.gov.uk/sites/default/files/2022-02/Stakeholder%20responses%20%282%29.zip)

Overview of 19th November 2021 Price Cap consultations

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