On 13 November 2019, the High Court upheld a judicial review challenge to Ofgem’s decision on the implementation of a tariff cap and the calculation of the wholesale energy cost allowance for the first period of the price cap (Q1 2019). The CMA investigated the energy supply market in June 2016 and concluded that there was ineffective competition in the energy supply market, which had resulted in higher default tariffs being charged to customers. In order to remedy this, Ofgem was required to impose a cap on standard variable and default energy tariffs (i.e., the tariffs charged to customers when the customer had not chosen any other tariff). Ofgem published its decision setting the price cap, which included an assessment on the wholesale energy cost allowance for Q1 2019, in November 2018. British Gas argued that (i) Ofgem’s price cap was based on an incorrect assumption about the behaviour of “typical” suppliers, and (ii) that Ofgem did not properly consult energy suppliers when making that assumption. The High Court found that Ofgem had made its decision on the basis of a factually incorrect assumption, and furthermore, it had failed to communicate the basis of its assumption to the energy suppliers. Ofgem had, therefore, failed to conduct a fair consultation process, as it did not afford a fair opportunity for those to whom the consultation was directed adequately to address the issue in question. British Gas was awarded the declaratory relief it sought and Ofgem was required to reconsider its price cap allowance for Q1 2019.