Commentary on provisions of the Act Section 3: Exemptions from the cap
Subsection (1) provides that the tariff cap conditions do not apply to domestic customers who benefit from the tariff cap under the Energy Market Investigation (Prepayment Charge Restriction) Order 2016. That Order applies to customers who pay for their energy through prepayment meters, subject to the specified exclusions.1 Also, the tariff cap conditions do not apply to domestic customers who benefit from a cap that replaces the cap in that Order.
	Subsection (2)(a) enables Ofgem to exempt from the cap any domestic customers who benefit from any other cap that Ofgem chooses to impose for the purpose of providing protections to vulnerable consumers.
	Subsection (2)(b) enables Ofgem to exempt tariffs from the cap if, or to the extent that, Ofgem considers the tariffs support the production of gas, or generation of electricity, from renewable sources. This exemption can only apply to tariffs chosen by the domestic customer.
	Subsection (3) places a duty on Ofgem to consult on whether and, if so, how to exempt such ‘green’ tariffs. It also clarifies that Ofgem may consult on whether to have a green tariff exemption before or in the course of proposing licence modifications under section 4. Under subsections (4) and (5), Ofgem must conduct the consultation in time to enable it to introduce any exemption at the same time as the tariff cap, or if this is not practicable, to introduce any exemption as soon as practicable after this.