With great power comes great responsibility – what can be done for customers and suppliers in these challenging times?

Given that the situation in the wholesale markets shows no signs of abating, both the government and Ofgem have a shared responsibility for helping to steward the energy sector through a period of profound challenges for suppliers as well as for their customers. Furthermore, the risk of structural damage to the UK economy as a whole due to record energy costs is evident, with the initial impacts already being seen in the latest inflation figures. With the prospect of a 50% increase in the Default Tariff Price Cap from 1 April next year, we set out our thoughts on some of the options open to them below:

Related thinking

Regulation and policy

Hanging in the balance – Ofgem’s latest proposals on protecting customer credit and RO payments

Ofgem has published a consultation setting out its latest proposal to deal with the risks – and costs – of supplier failure. This forms part of a broader piece of work on increasing the financial resilience of suppliers and curbing the costs passed on to all customers after a supplier...

Home supply and services

A Q&A with our price cap specialist, Principal Consultant Dr Craig Lowrey

We recently held an interview with our price cap specialist, Principal Consultant Dr Craig Lowrey. This discussed recent concerns over the price cap, what makes these predictions useful for domestic and non-domestic consumers and more. Dr Craig Lowrey has over 25 years’ experience in the energy sector, building upon academic...

Home supply and services

New forecasts for the January Default Tariff Cap rise to over £3,000 for a typical user

This week Cornwall Insight released its updated forecasts for the Default Tariff Cap. Q1 2023 which runs from January to March rose to over £3,000 for a typical user, the highest Cap we have ever seen, with the last quarter of 2022 Q4 running from October to December predicted to...

Energy storage and flexibility

Network charging – what’s been going on and why should I care?

Across Great Britain there are ~810,000km of wires and underground cables that make up our electricity network. Split between the higher voltage, transmission system and the lower voltage distribution system, these lines and cables are responsible for transporting electrons up and down the country to provide consumers with the necessary...

Home supply and services

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...

Energy storage and flexibility

Oil prices are dropping, so why are bills still high?

https://youtu.be/kEvKyeFGZb4 Video transcript Oil prices dropping… why are my bills still high? Last week, in particular, gas and power prices were very low. Gas for one day was 35p/th similar to what we were used to The drop is because Britain is now a major transit point for gas to...

Home supply and services

What is the Market Stabilisation Charge?

The Market Stabilisation Charge (MSC) requires all domestic suppliers acquiring a customer to make a payment to the supplier that is losing the customer. The charge applies to all switches, so suppliers are not obliged to inform competitors which tariff the consumer switched to or from. It is comprised of...

Commercial and market outlook

Cornwall Insight responds to the announcement of an Energy Bill in the Queen’s Speech

The Queen’s Speech this week included a much-anticipated announcement that an Energy Bill will be introduced at some point over the next parliamentary session. The Bill is a logical conclusion of policy development in the period since the net zero commitment was made in the summer of 2019. It accommodates...