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As we discuss in the week’s Energy Perspective, beneath the headlines, the increase in the level of the Default Tariff Cap reflect not just rising wholesale markets but also further interventions in the cap formulas by the regulator as it strives to maintain the difficult balancing act it was set by ministers. That act is to define a mechanism with some semblance of the volatile costs faced by suppliers, while retaining the credibility of consumers. With the cap due to expire in 2023 under current legislation, that act is due to get harder and be accompanied by increasing political interest in the energy market.
Also covered in this issue: the Final TNUoS tariffs for 2021-22, the Public Accounts Committee’s criticisms of the government’s environmental progress and the Scottish Budget.

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