SSE comments on the Default Tariff Cap Statutory Consultation

SSE plc (SSE) notes Ofgem’s proposed default tariff cap and associated consultation document, which are subject to a four week consultation period.

Commenting on today’s publication, Alistair Phillips-Davies, Chief Executive of SSE plc, said:

“The proposed cap, associated methodology and input data will require the most careful scrutiny in the coming weeks. SSE will assess the potential impact on its customers, operations and the wider GB energy market and will respond fully to Ofgem’s consultation. The key question to be answered is whether the proposed cap is cost-reflective, fair and sustainable.

“An absolute price cap is a significant market intervention, requiring a complex set of judgements around the multiple and variable costs involved in supplying energy.

“Setting the cap at a level that protects the needs of current and future standard tariff consumers, preserves effective competition in the market and enables efficient suppliers to finance their licensed activities is a challenging task but also an essential objective, and it is against that objective that the proposed cap and associated methodology needs to be tested.

“SSE supports the development of a healthy, well-functioning competitive energy supply market and continues to believe that competition, not caps, best serves the long term interests of customers. Nevertheless, we will continue to engage fully with Ofgem to ensure that the default tariff cap is as fair and robust as possible.”