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Response to Ofgem’s request for feedback on extending the market stabilisation charge

16 September 2022

Response to Ofgem’s request for feedback on extending the market stabilisation charge [ 210 kb]

Ofgem was seeking feedback on whether there was a need for some form of Market Stabilisation Charge (MSC) to be put in place after the expiry of the current MSC in March 2023. The MSC reduces the ability of consumers to save money by switching if wholesale energy prices return to more normal levels. We argued that Ofgem should not extend it beyond its current lifespan, and raised a number of methodological concerns regarding the analysis underpinning the policy.