Commentary on provisions of the Act Section 1: Cap on standard variable and default rates
Subsection (1) requires Ofgem to modify the standard licence conditions for gas and electricity suppliers, so as to include conditions ("tariff cap conditions") that impose a cap on the rates that may be charged for certain tariffs offered to domestic customers. Ofgem must do this as soon as practicable after the Act is passed.
	The requirement for tariff cap conditions applies to standard variable and default tariffs, subject to section 3.
	Subsection (2) provides that Ofgem may amend the tariff cap conditions once those conditions are in place. This could be used, for example, if Ofgem need to change the way that the price cap is to be calculated. The tariff cap conditions must be in place until they cease to have effect under section 8.
	Under subsection (6) Ofgem must seek to protect existing and future domestic customers who pay standard variable and default rates, and must take into account the matters listed at subsection (6) when implementing or modifying the tariff cap conditions. It is for Ofgem to balance each of the matters in complying with this duty.
	Subsection (7) makes clear that Ofgem will not be required to cap certain charges that are not part of regular bills, such as charges for late payment and charges relating to meters.