Market Stabilisation Charge
What is the Market Stabilisation Charge?
From 15 December 2021 to 17 January 2022, Ofgem consulted on a range of potential temporary measures to enable domestic suppliers to better manage risks created by current wholesale market volatility, which could lead to higher costs for consumers in the event of further significant supplier exits from the market.
On 16th February 2022, Ofgem published a decision document to introduce two measures which they believe are in consumers’ interests. This includes a requirement for suppliers to pay a Market Stabilisation Charge (MSC) when acquiring new customers.
The MSC is a charge which is to be levied on suppliers who gain customers through switching. The MSC is a £ per kWh charge which Ofgem will determine on a weekly basis. When a customer switches to a new supplier, the MSC in effect at the time of the switch is multiplied by the customer’s annual consumption and the gaining supplier pays that amount into the scheme. The collected payments will be distributed amongst suppliers who lose customers and is intended to compensate a proportion of the economic loss and insulate the market from the destabilising effects of a significant change in the price of wholesale energy.
Invoice schedule
These documents contain tables showing the invoice and payment scheduling for each 4-Week MSC Cycle, detailing payment deadlines for Suppliers and RECCo.
Schedule for Invoice Period 15/11/22
Schedule for Invoice Period 24/05/23
MSC payment details
The document below details the total value of invoices sent to Suppliers and the proportion of that amount collected from Suppliers. For Suppliers due to receive payment from the scheme, it includes the proportion of their calculated credit that RECCo has paid out for the current & previous invoice periods.
Useful links
Contact: enquiries@recmanager.co.uk
