I'm going by an article in the Guardian on the makeup of the cap

It said a margin of 1.9% was allowed (which is within the margin and overheads).

Even in more profitable days and pre-price cap and wholesale spike, I think the general consumer margin was around 3% for the big 6 as was.

A lot of the problem at the moment for the consumer companies is the gap between the basis of cap pricing and implementation. I believe we are more than half way though the period for the next cap and it will be live several months after the period used for calculation. How this will change if they go quarterly I don't know, I'm not sure that hedging over a shorter future would work.

Not my specialist subject, I know just enough to talk total rubbish about it.

Posted By: watfordcanary, May 17, 15:16:07