LONDON: Ofgem is consulting on its proposal that no further adjustment is required to account for the impact of COVID-19 for the default price cap from October 1 2021.

The consultation is open until 15 June 2021, with a final decision being published in early August before the next price cap update to take effect from 1 October 2021.

Ofgem does not consider that there is significant and clear evidence that energy suppliers are likely to incur material additional costs due to COVID-19. “Therefore, we are not proposing to introduce an additional float in cap period seven”.

“This is our final consultation on whether and how to update the default tariff cap methodology to account for the impact of COVID-19 on the efficient costs of supplying domestic default tariff customers for cap period seven. We would like views from stakeholders with an interest in the level of the default tariff cap. We particularly welcome responses from domestic energy suppliers, consumer groups and the public,” Ofgem noted.

Reviewing the potential impact of COVID-19 on the default tariff cap: cap period seven