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Energy consultation responses

Response to Ofgem consultation on medium term changes to the price cap methodology

Dydd Gwener, 4 Mawrth 2022

Ofgem was consulting on medium term changes to the energy price cap that are intended to reduce the risk of supplier failure. We expressed support for the option of moving to a quarterly price cap. We argued that an alternative proposal of moving to fixed term 12 month default tariffs would increase risk compared to the status quo and should not be pursued.

Response to Ofgem's consultation on the Warm Home Discount (‘WHD’) scheme allowance methodology in the default tariff cap.

Dydd Llun, 17 Ionawr 2022

Ofgem was consulting on how it should adjust the energy price cap to account for changes to the Warm Home Discount scheme that are still being finalised. We agreed with its proposal that it should use the government’s provisional cost estimates, and that it should subsequently make a correction if those estimates did not tally with the final costs. We argued it should give itself more flexibility than it is proposing on when any correction should take place however, in order to avoid putting further pressure on consumer bills when they are at record levels.

Response to Ofgem's statutory consultation on potential short-term interventions to address risks to consumers from market volatility

Dydd Llun, 17 Ionawr 2022

Ofgem was consulting on whether it should introduce short term measures to discourage switching, in order to reduce the risk that more energy suppliers go bust. We strongly opposed its suggestion that exit fees should be introduced on default tariffs, but provided support for a proposal that suppliers should be required to offer all their new tariffs to existing customers.

Response to Ofgem's call for input paper on adapting the price cap methodology for resilience in volatile markets

Dydd Iau, 13 Ionawr 2022

Ofgem was asking for views on whether the energy price cap needed to be modified to allow it to respond to volatile wholesale market conditions. We expressed support for one of the three ideas it was testing, moving to a quarterly cap, while expressing concern about suggested alternatives that would allow for its reopening within price cap periods, or see the introduction of exit fees on default tariffs.