This document sets out and seeks views on our proposal to temporarily amend the Retail Exit Code (REC) with effect from April 2022. The small and temporary amendment would increase the maximum prices that Retailers are allowed to charge business customers who are on default tariffs. The temporary increase is intended to allow Retailers to share some of the unexpected costs associated with bad debt that have arisen due to the Covid-19 pandemic. We are making market-wide adjustments to the business retail (REC) price caps to maintain strong incentives on Retailers to manage bad debt costs so that only efficiently incurred excess bad debt costs are shared with business customers.
These proposals do not affect household customers.
Where to send submissions
We seek views and evidence from all interested stakeholders. We welcome views on the issues relevant to the consultation, in particular regarding questions 1 to 5 in chapter 3, by 5pm Wednesday 12th January 2022.
Please submit email responses to [email protected], with the subject ‘Customer Bad Debt December 2021 Decision and Consultation’.
You can submit your responses by post to: ‘Customer Bad Debt December 2021 Decision and Consultation’, Ofwat, 21 Bloomsbury Street, London WC1B 3HF.