Energy price cap additional wholesale costs decision
Summary
Ofgem decision on additional wholesale cost allowances within the energy price cap. Addresses whether suppliers need extra headroom for wholesale energy procurement costs beyond the standard methodology.
Why it matters
Wholesale costs are the largest single component of the price cap. Additional allowances directly increase the cap level and what consumers pay.
Areas affected
Related programmes
Memo
Energy price cap additional wholesale costs decision | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Energy price cap additional wholesale costs decision Publication type: Decision Publication date: 23 February 2024 Topic: Energy pricing rules Subtopic: Energy price cap Decision for: Energy price cap wholesale costs review Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Summary This publication details our decision after receiving views and feedback from stakeholders regarding making an adjustment to the energy price cap for wholesale costs. We asked for views and feedback on our proposals in the Energy price cap wholesale costs review consultation . Decision We have decided not to adjust the energy price cap to reflect differences between wholesale costs and allowances between October 2022 to September 2023. We have also decided to make two small changes to the Annex 2 wholesale allowance methodology model. You can also read a summary of feedback received on the priorities for future wholesale methodology reviews in this decision document. Main document Energy price cap wholesale adjustment decision [PDF, 416.89KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close