Tapestry: Ofgem’s new quarterly Default Tariff Cap

This article was extracted from our Energy Spectrum publication published 23 May 2022. Energy Spectrum is a weekly news service which keeps you up-to-date with developments in the market. For the full article please contact Jack Hunt at j.hunt@cornwall-insight.com

The announcement by Ofgem of its minded-to decision in respect of a move from seasonal Default Tariff Cap periods to quarterly caps had been largely anticipated following communication from the regulator in February 2022. However, the move comes as part of a wide-ranging set of potential further changes to the cap that are set to rebalance some of the tariff risk from suppliers to consumers at a time when the cost of living crisis is set to escalate further.

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