Price Cap – working paper on the true-up process for COVID-19 costs
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In our February 2021 decision we introduced an adjustment in the default tariff cap to account for an initial estimate of additional bad debt as a result of COVID-19. The “true-up” aims to adjust this initial estimate to reflect the final costs once they are fully known. This working paper is a step towards developing our approach to the true-up.
This working paper focuses on the options for the data source for bad debt that we could use to calculate the true-up. This working paper also provides stakeholders with an update on when we aim to implement the first true-up.
We are seeking written comments by 14 July 2021.
Respond name
Leonardo Costa, Head of Price Cap Policy