Domestic prepayment energy price cap: illustrative model

This model illustrates how the level of the domestic prepayment energy price cap may be calculated and updated.


Illustrative price cap update model

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One of the Competition and Markets Authority’s proposals following its investigation into the energy market is to introduce a price cap for customers on prepayment meters.

The model illustrates how the domestic prepayment energy price cap may be calculated and updated in each region, for each fuel and for each relevant period.

Please note, this model has been published for the purpose of aiding understanding. We plan to consult on this model, as an appendix to our draft order, with a view to developing it further into a model that can be used to ultimately calculate the price cap level for each update. The draft order will be published on the energy market investigation case page in due course.

Published 24 June 2016