Ofgem to modify default tariff cap following consultation

Article summary

Ofgem has confirmed that it will proceed with its proposal to modify Standard Licence Condition (SLC) 28AD in the gas and electricity standard supply licences. The modification will enable Ofgem to use the modified SLCs while determining and announcing the Benchmark Maximum Charges (Cap Level) for an upcoming Charge Restriction Period (Cap period) of the Default Tariff Cap. The modification means that Ofgem will use the licence conditions that will have effect in the relevant Cap period to calculate and announce the Cap Level, provided that the modifications will be in effect by the first day of the Cap period, rather than using the methodology that is in effect at the time of the announcement.