Ofgem is proposing to extend an allowance in the price cap which enables suppliers to recover bad debt costs in relation to additional support credit (ASC). An open letter by the regulator’s deputy director of retail, Chris McDermott, has since revealed that Ofgem is proposing to extend the allowance at its current level beyond September 2024, when it is currently due to come to an end, until the outcome of its operating costs review is implemented, or until it decides to carry out a review of the ASC allowance.
Ofgem to extend bad debt support provision in price cap
