Definitions for "Price Cap"
A way of setting rates whereby the utility is given a limit on the average dollar per usage (or dollar per customer) revenue it may collect, but within that is given flexibility on how to set the prices, and is permitted to recover profits above those cost-of-service regulation would consider reasonable, up to some limit, as an incentive to be more efficient.
A level above which regulated prices may not rise.
A way of setting rates in which the utility is given a limit on the average dollar-per-customer revenue it may collect and still recover profits on service.
A hedging concept that contractually establishes a maximum price to be paid for a security or commodity over a specified period of time. The price cap only applies when the market price is above the price cap. See also price floor.
a situation where a price for a commodity cannot rise above a pre-determined fixed rate.
Situation where a price has been determined and fixed.
Keywords:  gas, electricity, control, over
price control over electricity or gas prices.