Ofgem is launching five consultations on adjustments to the energy price cap to ensure it reflects the costs, risks and uncertainties affecting suppliers all across the UK in regards to this current energy crisis.
The five main consultations are in regards to whether the recent volatility of the market has caused the price cap to become far less efficient at a cost level than it is allowed to be, allowing Ofgem to amend the cap outside its six-month cycle when exceptional circumstances come into play, working out how much debt-related and material costs the COVID-19 pandemic has really been the trigger for, further reflection of end user categories in the default tariff cap and looking into the Energy Company Obligation scheme, giving Ofgem the option to allow for the costs of ECO4 scheme.”
It will include stakeholder responses in its decisions and intends to have these published by the start of February next year, apart from the consultation relating to COVID-19, which will come out next year in August 2022.
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If you’re interested in more UK energy news, check out our other articles regarding the UK energy sector and how it’s handling the recent energy crisis.