We’re happy to report that Ofgem is reviewing its Price Cap methodology. In a letter to all Stakeholders, they asked for feedback on proposals under each workstream and a proposed timeline for delivery.
We are preparing a response to Ofgem; we agree that the methodology should be reviewed and recognise the unintended consequences of the policy.
In the future, we are calling for Ofgem to ensure that the price cap not only protects consumers but also better manages the risks faced by Suppliers. To address this, Ofgem must prioritise its review of operating costs. We urge Ofgem to review the time they have suggested for this.
We will publish our complete response on the RECCo website.
We are developing our response to this consultation and would welcome the opportunity to discuss stakeholder views ahead of submission. If you want to discuss this, please reach out to Suchitra Hammond at recco_strategy@retailenergycode.co.uk.