Ofgem rules out further price-cap adjustment for historical debt costs

Ofgem will make no further adjustment to Great Britain’s energy price cap for past debt-related costs incurred by suppliers. The regulator found that households on capped tariffs had already paid their share of the costs incurred between 1 April 2022 and 30 June 2025. Ofgem’s 13 November decision

What Ofgem reviewed

Ofgem introduced a temporary allowance after suppliers faced higher-than-expected costs linked to customer debt. To decide whether another adjustment was needed, Ofgem compared suppliers’ reported costs with the revenue the relevant price cap allowances were designed to provide. It proposed no further adjustment in March 2026 and confirmed that decision after reviewing consultation responses and updated evidence. Consultation and outcome

On default tariffs covered by the cap, Ofgem limits what suppliers can charge per unit of energy and in daily standing charges. A household’s total bill still depends on its energy use and the rates it pays. Ofgem price-cap publications

This decision applies only to the historical debt costs covered by the review. Ofgem sets price cap rates separately each quarter, so the decision does not mean household bills will stay the same. Ofgem decision, Ofgem price-cap publications

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