Response to Ofgem's consultation on the process for updating the default tariff cap methodology and setting maximum charges
Ofgem was consulting on whether it should be able to re-open the energy price cap on an ad hoc basis, to allow it to adjust for rapidly changing wholesale prices. We argued that it should not, given the uncertainty and subjectivity inherent in its proposals, and that it might have retrospective effect. Moving to reset the level of the cap more frequently, perhaps quarterly, might provide a better way for it to remain up to date than Ofgem taking ad hoc adjustment powers.