Citizens Advice response to Ofgem’s energy price cap: backwardation deadband consultation

We are broadly in support of the removal of the deadband from the backwardation allowance in the cap. We support costs being recovered over 12-months to avoid large fluctuations in the cap between quarters. 

We also note that Ofgem states that ‘these are costs suppliers may have to manage as part of their usual business activities’ and ‘Removing the deadband would reduce these risks’. Reducing risk on suppliers can be in the interests of consumers but needs to be reflected in a reduced profit margin.