Ofgem Consultation on Energy Price Cap Debt Costs Review

UK Ofgem Publications & Decisions

Published March 25th, 2026

Detected March 25th, 2026

Summary

Ofgem has launched a consultation seeking views on its review of the temporary debt-related costs allowance added to the energy price cap between April 2022 and June 2025. The review aims to determine if the allowance was set at the correct level and if any adjustments to the price cap are necessary.

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What changed

Ofgem is consulting on its review of the temporary debt-related costs allowance that was applied to the energy price cap from April 2022 to June 2025. This allowance was introduced to reflect higher-than-expected debt costs incurred by energy suppliers. The review will analyze supplier data to assess whether the allowance was appropriately set and if any adjustments to the price cap are warranted.

Interested parties, including energy suppliers, industry bodies, consumer groups, charities, and consumers, are invited to submit their views by 16 June 2026. Those wishing to access underlying models and data must register their interest by 21 April 2026 and provide a compliance document and signed undertakings.

What to do next

Submit comments on the debt-related costs allowance review by 16 June 2026.
Register interest to view models and data by 21 April 2026.
Submit compliance documents and signed undertakings if requesting access to models and data.

Source document (simplified)

Energy price cap: review of historical debt related costs

Publication type: Consultation Publication date:

25 March 2026

Closing date: 16 June 2026 Status: Open Topic: Energy pricing rules Subtopic: Energy price cap Get emails about this page Print this page

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We are seeking views on our review of the temporary debt related costs allowance added to the energy price cap between April 2022 and June 2025.

Consultation description

We introduced a temporary allowance to reflect the higher than expected debt costs that suppliers incurred between 1 April 2022 and 31 March 2024.

The temporary allowance was initially applied for 12 months but was extended for another 3 months before being replaced by a permanent allowance.

We are now reviewing the temporary allowance to check if it was set at the right level and if not whether any new adjustment to the price cap is needed.

To do this we have analysed data on suppliers' actual debt costs and compared them against the allowances they received.

This consultation focuses on the energy price cap and is not part of any wider actions being considered as part of our debt strategy.

Request models and data

As part of this consultation, we will make models and data available to those who would like to view them through a confidentiality ring. To view this information, you will need register your interest by emailing priceprotectionpolicy@ofgem.gov.uk. You will need to submit a draft compliance document and signed undertakings by Tuesday 21 April 2026.