Price Cap - Decision on changes to ‘Annex 4 - Policy cost allowance methodology’ of SLC 28AD to include a Green Gas Levy allowance in the default tariff cap

Decision

 

In October 2021, we consulted on our proposals to amend the default tariff cap for gas customers to provide an additional allowance for the Green Gas Levy, which will fund the Green Gas Support Scheme. We also outlined our proposed changes to the model set out in ‘Annex 4 - Policy cost allowance methodology’ to standard licence condition (SLC) 28AD of the gas supply licence. We have now considered stakeholders’ responses and are publishing our decision.

We have decided to include an allowance for the Green Gas Levy from cap period eight onwards. This document also describes our decision to amend our methodology in ‘Annex 4 - Policy cost allowance methodology’ of SLC 28AD to include the allowance in the default tariff cap.