Energy price cap: additional debt costs review decision
Summary
Ofgem decision on the additional debt costs review within the energy price cap. Determines how much suppliers can recover for the elevated bad debt levels arising from the energy crisis.
Why it matters
Adds directly to the price cap level. Post-crisis energy debt remains high, and this decision determines how much of that cost burden is passed to all consumers versus absorbed by suppliers.
Areas affected
Related programmes
Memo
Energy price cap: additional debt costs review 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 debt costs review decision Publication type: Decision Publication date: 23 February 2024 Topic: Energy pricing rules Subtopic: Energy price cap Decision for: Energy price cap: additional debt costs review consultation Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn We asked for views and feedback on our proposals in the December 2023 consultation on making a temporary adjustment to the cap to allow for additional debt related costs incurred across industry between April 2022 and March 2024. We have decided to apply a temporary adjustment to the price cap. Initially we will set a float adjustment which will apply to the price cap from 1 April 2024, for 12 months. We aim to deliver a true-up process by April 2025. We have also decided on a benchmarking approach for debt-related costs, and our associated considerations. Main document Energy price cap additional debt costs review decision [PDF, 1.05MB] Subsidiary documents Annex 8 adjustment allowance methodology v1.10.2 [XLSX, 0.98MB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close