Citizens Advice response to Ofgem’s energy price cap review of historical debt related costs

Citizens Advice response to Ofgem’s energy price cap review of historical debt related costs

Citizens Advice is pleased to respond to this consultation on debt-related cost allowances within the price cap. We believe that the evidence shows the float was set at a level which was too high and led to material over-recovery. As such, a further downward adjustment is required to return money to customers. Our view is that:

• Total debt-related costs and revenues should be calculated across all tariff types,

• Benchmark cost methodologies establish a plausible range to reflect inefficiencies within debt-related costs, and the weighted average approach should not be solely relied upon.