Energy pricing rules

Price cap - Statutory consultation on changes to the wholesale methodology

This is a statutory consultation on proposed changes to the price cap wholesale methodology. The consultation addresses the price cap index, including the length of the notice period. It also contains a proposal to update the wholesale methodology to include backwardation. The deadline for responses is Tuesday 14th June 2022.

As of 26/05/2022 we have updated the draft annex 2 model on this webpage. Following responses from stakeholders, we have updated the wholesale cost model and made some technical changes to the calculation, including the transitional approach weightings. This does not impact the policy proposals put forward in the consultation.

Respond name

Dan Norton

Respond telephone

[0207 901 7000](tel:0207 901 7000)

Respond email

pricecapchanges@ofgem.gov.uk

Main document

[Price cap - Statutory consultation on changes to the wholesale methodology [PDF, 1.12MB]

](https://www.ofgem.gov.uk/sites/default/files/2022-05/Price%20cap%20-%20Statutory%20consultation%20on%20changes%20to%20the%20wholesale%20methodology.pdf)

Subsidiary documents

[Changes to the wholesale methodology - Licence modification notice [PDF, 171.54KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-05/Price%20cap%20-%20Changes%20to%20the%20wholesale%20methodology%20-%20Licence%20modification%20notice1652376739044.pdf)

[Draft annex 2 wholesale cost model [XLSX, 7.54MB]

](https://www.ofgem.gov.uk/sites/default/files/2022-08/Annex_2_-_wholesale_cost_allowance_methodology_v111%20%28data_removed%29.xlsx)

[Draft annex 4 policy cost model [XLSX, 389.57KB]

](https://www.ofgem.gov.uk/sites/default/files/2022-05/DRAFT%20-%20Annex_4_%E2%80%93_policy_cost_allowance_methodology_v1111652376823191.xlsx)

[Draft default tariff cap overview model [XLSX, 1.65MB]

](https://www.ofgem.gov.uk/sites/default/files/2022-05/DRAFT%20-%20Default_tarif_cap_level_v1111652376845045.xlsx)

Response documents

[Stakeholder responses to the policy consultation [ZIP, 2.97MB]

](https://www.ofgem.gov.uk/sites/default/files/2022-05/Policy%20consultation%20stakeholder%20responses.zip)

[Non-confidential consultation responses [ZIP, 2.68MB]

](https://www.ofgem.gov.uk/sites/default/files/2022-08/53496%20Non-confidential%20responses.zip)

Letter from Jonathan Brearley to the Chancellor and Secretary of State for Business, Energy and Industrial Strategy on the Default Tariff Cap

Correspondence and other

Consultation on the true-up process for COVID-19 costs

Consultation

On this page

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