Price cap – Open letter on reviewing additional wholesale costs

Price Cap - Decision on possible wholesale cost adjustment
Price Cap - Decision on the potential impact of increased wholesale volatility on the default tariff cap

An open letter outlining the case and scope of a review on additional wholesale costs covering October 2022 - September 2023. The review will largely cover a combination of unexpected SVT demand, shaping costs and imbalance costs. We also intend to review our approach to the backwardation recovery period.

We are seeking feedback from stakeholders on the open letter by 14 August 2023.

Respond name

Dan Norton

Respond email

priceprotectionpolicy@ofgem.gov.uk

Main document

[Price cap - Open letter on reviewing additional wholesale costs [PDF, 211.28KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-07/Price%20cap%20-%20Open%20letter%20on%20reviewing%20additional%20wholesale%20costs.pdf)

Response documents

[Price cap – Open letter on reviewing additional wholesale costs - non-confidential responses [ZIP, 443.93KB]

](https://www.ofgem.gov.uk/sites/default/files/2023-12/Price%20cap%20%E2%80%93%20Open%20letter%20on%20reviewing%20additional%20wholesale%20costs%20-%20non-confidential%20responses.zip)

Price cap – Open letter on reviewing additional wholesale costs

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