The UK Domestic Gas Electricity (Tariff Cap) Act: Re-Regulating the Retail Energy Market

Modern Law Review, Forthcoming

27 Pages Posted: 6 Nov 2018

See all articles by Maria Ioannidou

Maria Ioannidou

Queen Mary University of London, Centre for Commercial Law Studies, Students

Despoina Mantzari

UCL Laws

Multiple version iconThere are 2 versions of this paper

Date Written: September 24, 2018

Abstract

The UK retail energy market has witnessed multiple regulatory interventions since its liberalization almost two decades ago. Such interventions reached their peak with the enactment of the UK Domestic Gas Electricity (Tariff Cap) Act in July 2018. The Act puts in place a requirement on the independent regulator, the Office of Gas and Electricity Markets (Ofgem), to set an absolute price cap on poor value tariffs. As such, it signals a repudiation of the overarching paradigm of consumer empowerment that has informed regulatory remedies to date. Rather than advocating for a different paradigm, this article highlights the difficulties inherent in reconciling price caps – both practically and conceptually – with the competitive process and consumer empowerment. It further brings to the fore other instruments, not necessarily exhausted in retail price regulation, that can render affordable energy prices, without sacrificing consumer empowerment.

Keywords: Price Caps, Retail Energy Market, Competition, Regulation, Consumer Empowerment, Consumer Protection

JEL Classification: K21, K23

Suggested Citation

Ioannidou, Maria and Mantzari, Despoina, The UK Domestic Gas Electricity (Tariff Cap) Act: Re-Regulating the Retail Energy Market (September 24, 2018). Modern Law Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3266371

Maria Ioannidou (Contact Author)

Queen Mary University of London, Centre for Commercial Law Studies, Students ( email )

67-69 Lincoln’s Inn Fields
London
United Kingdom

Despoina Mantzari

UCL Laws ( email )

Bentham House
London WC1H 0EG, London WC1
United Kingdom

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