The cap

Tariff cap conditions
2
1
Tariff cap conditions—
a
have effect in relation to supply licences, whenever granted, and domestic supply contracts, whenever entered into;
b
must set out how the cap is to be calculated, and may make provision about assumptions required to be made in making the calculation;
c
may make provision specifying how a standard variable or default rate is to be identified;
d
may make provision requiring information to be provided by holders of supply licences to the Authority for the purposes of exercising functions relating to tariff cap conditions;
e
may confer functions on the Authority;
f
may make different provision for different areas or different cases;
g
may do any of the things authorised for supply licences by section 7B(5)(a), (6) or (7) of the Gas Act 1986 or section 7(3), (4), (5) or (6A) of the Electricity Act 1989.
2
But tariff cap conditions may not—
a
exempt holders of supply licences from their application, or
b
make different provision for different holders of supply licences.
3
Before making the first modifications under section 1 the Authority must, and before making any subsequent modifications under that section the Authority may, consult such persons as it considers appropriate on the methodology to be used for the purposes of the cap.
4
Consultation undertaken before this Act is passed is as effective for the purposes of subsection (3) as consultation undertaken after it is passed.