Ticking Clock

With the political debate regarding energy prices and their impacts on the cost of living – not to mention the economy at large – the default tariff cap announcement for Summer 2022 from Ofgem at the start of next month is the most anticipated since the cap’s inception.

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Home supply and services

Switching duck: electricity switches to remain subdued in the near future

In November 2021, switching levels plummeted in response to rising tariff prices and a lack of market choice. By January 2022, domestic switching reached its lowest level on record, falling 80% on January 2021. This 'Chart of the week' checks in with the options, if any, available to households wanting...

Business supply and services

A GoO-ey end? Green power import certificates poised for removal

On 29 March, BEIS published a consultation seeking views on the removal of Feed in Tariff (FIT) and Contracts for Difference (CfD) scheme cost exemptions for green imported electricity and the recognition of EU Guarantees of Origin (GoOs) in GB altogether. Our 'Chart of the week' shows historic GoO imports...

Home supply and services

No easy fix: tariff prices remain high

In response to the unprecedented increases in global gas prices, Ofgem announced last week time limited measures “to help stabilise” the supply market. This includes a requirement for all domestic suppliers to offer existing customers the same tariffs available to new customers from 14 April, echoing changes made by the...

Home supply and services

Last Resort Supplier Payments: the impact on domestic electricity bills

The presence of a significant increase in commodity costs in 2021, combined with the Default Tariff Cap limiting the revenues that suppliers can recover in the domestic market, has contributed to a number of suppliers falling into insolvency in the last 9 months. The Supplier of Last Resort (SoLR) process...

Home supply and services

The default tariff cap: More questions than answers?

Throughout the recent period of wholesale and supply market volatility, the government and Ofgem have remained committed to the default tariff cap and continued to highlight its benefits to customers in protecting them from rising energy prices this winter. However, Cornwall Insight’s forecast of the default tariff cap for Summer...

Commercial and market outlook

CP19 of the RO sees record shortfall

The perfect storm of challenging market conditions has persisted across the duration of the 2020-21 compliance period (CP) of the Renewables Obligation (RO), driving a large volume of supplier exits, particularly over recent months. As the dust settles on the compliance process relating to CP19 (2020-21) of the RO, this...

Home supply and services

Domestic switching falls as the savings gap is squeezed

With day-ahead gas reaching an all-time high of 187.50p/th as of 15 September, it has been a record-breaking summer for wholesale energy prices. This Chart of the Week explores the impact these high prices are having on domestic tariffs and consumer switching behaviour.

Low carbon generation

CfD Allocation Round 4: how much capacity might we expect?

On 13 September, BEIS published the draft budget notice and draft Allocation Framework for Allocation Round 4 (AR4) of the Contracts for Difference (CfD) scheme, scheduled to open in December 2021. BEIS set out a total draft budget of £265mn (in 2011-12 money) for AR4, meaning that total spend in...