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