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Letter to Ofgem regarding its second working paper on the design of the forthcoming energy price cap

13 April 2018

Working paper 2: market basket [ 240 kb]

In its second working paper, Ofgem was seeking feedback on whether it could use a basket of tariffs that are already on the market to set its new price cap.  

In our submission, we agree with its provisional recommendation that this approach would not be appropriate, and raise concerns that using this kind of methodology could lead to arbitrary and poorly evidenced policy choices.