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Energy consultation responses

Response to Ofgem consultation on changes to the Market Stabilisation Charge

14 April 2022

Ofgem was consulting on changes to the Market Stabilisation Charge (‘MSC’). The MSC is designed to compensate suppliers if they lose customers following large falls in wholesale prices. That compensation would effectively be paid by consumers, and reflected in higher bills. Ofgem was proposing to make these charges larger. We opposed this proposal.

Response to Ofgem consultation on medium term changes to the price cap methodology

04 March 2022

Ofgem was consulting on medium term changes to the energy price cap that are intended to reduce the risk of supplier failure. We expressed support for the option of moving to a quarterly price cap. We argued that an alternative proposal of moving to fixed term 12 month default tariffs would increase risk compared to the status quo and should not be pursued.