Commentary on provisions of the Act Section 8: Extension and termination of tariff cap conditions
Section 8 sets out the procedure for extending or terminating the tariff cap conditions depending on the statement made by the Secretary of State, as per section 7.
	The tariff cap conditions cease to have effect at the end of 2020, if the Secretary of State makes a statement that the conditions for effective competition are in place. If the Secretary of State makes a statement that the conditions for effective competition are not in place, the tariff cap conditions apply for the year 2021.
	If the tariff cap conditions apply in 2021, the same process takes place in the year 2021 to determine if the tariff cap conditions must apply for the year 2022. And if the tariff cap conditions apply in 2022, the same process takes place again to determine if the tariff cap conditions must apply for the year 2023. However, the tariff cap conditions must cease to have effect at the end of the year 2023.
	Once the tariff cap conditions cease to have effect, Ofgem cannot use section 1 to impose further tariff cap conditions.