OFGEM: Price Cap For Domestic But Not For Business Customers

150 150 David

OFGEM has recently published a report investigating the possibility of changing the price cap model for domestic consumers on the expensive variable tariff to a cost pass-through tariff.

In response I have written to OFGEM asking why is there no price cap on out-of-contract tariff for business customers and we received the following response:

Thank you for your email.

There are currently no price caps in place for business contracts, however we recommend that business customers should talk directly to their suppliers to see if they have any better offers. Note that if you are consuming energy on a default – or deemed – tariff, the supplier has an obligation to take all reasonable steps to tell you about other available contracts and how you can get information on these.

Kind Regards

Consumer Affairs

Assistant Manager

Commonwealth House

3rd Floor

32 Albion Street


G1 1LH


We still believe suppliers should not be free to charge out-of-contract rate at any level they wish and OFGEM should either impose a cap or make it a license condition that any deemed rate must reflect actual cost.