Haven Power

Helm proposes default regulated tariff

Helm proposes default regulated tariff


A new paper from Oxford economist Dieter Helm has called for the creation of a new transparent regulated default tariff as a solution to current concerns over the domestic retail energy market. Published on Monday 25 April, the paper recommended the creation of a default tariff calculated using the formula “Indexed wholesale price + fixed cost pass throughs + unregulated published margins”. Helm argued that this would stop exploitation “dead in its tracks, whilst encouraging and greatly enhancing competition from new entrants around a clear and published margin.” Suppliers would remain free to offer other tariffs, but the publication of margins would reveal a wide range, partly reflecting different levels of efficiency and partly reflecting the segmentation of the market.

Dieter Helm