British Gas owner Centrica has been granted a judicial review into how Ofgem calculates wholesale costs for its default price cap. The energy regulator insists it will “robustly defend” its approach to setting the cap but admitted there may be an “adjustment” of the price cap level if Centrica is successful in the review. The cap will remain in place regardless of the hearing’s outcome, Ofgem stressed. Centrica announced it was seeking a judicial review towards the end of last year ahead of the cap coming into effect on 1 January 2019. The company was granted permission for the legal challenge by the High Court last week. If it is successful, the review could take place before the end of the year.
Utility Week 17th May 2019 read more »