Asked by: Simon Clarke (Conservative - Middlesbrough South and East Cleveland)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the extent to which the profit margins of distribution network operators affect the cost of energy.
Answered by Lord Harrington of Watford
Electricity and gas networks are the transportation systems which convey energy from where it is produced or imported to homes and businesses. Network costs make up around a quarter of the average dual fuel bill.
Network companies are regulated by Ofgem in order to ensure that companies deliver a safe, reliable network whilst investing for the future and providing value for money for customers.
The regulation process is a matter for the independent regulator Ofgem and, by law, must be administered independently of Government.