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Market research & Insight

Issue 812 | Ofgem Working Paper: Approach to Headroom in the Default Tariff Cap

Issue 812 | Ofgem Working Paper: Approach to Headroom in the Default Tariff Cap

Emma  Bill Emma Bill Analyst

Ofgem Working Paper: Approach to Headroom in the Default Tariff Cap 10 April 2018 Headline Assessment 1 Assessment & recommendation Ofgem published its third working paper on the government’s default tariff cap on 9 April, which sets out the regulator’s plans to assess the appropriateness and impacts of a headroom allowance. The increment, offered through a headroom allowance, would permit suppliers to charge above the efficient level of costs and maintain some level of competition. The regulator will consider the impact of a headroom allowance with respect to four areas: Customer bills, including widening its analysis to cover mid-size suppliers ...

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