Operating costs are a key part of the energy price cap. They refer to the costs of running an energy supply business, such as the call centres and metering systems required to serve customers. They also include the costs incurred by suppliers of customers who fall behind on their bills, known as debt-related costs.
Ofgem says it has carried out its first full review of supplier operating costs since the price cap was introduced in 2019.
“This is to ensure that costs are fair, accurate, and reflective of the current climate,” the regulator said.
“While costs associated with consumer debt have increased, suppliers have become increasingly efficient and resilient, and as a result operating costs have fallen – creating lasting savings for customers.”
