Asked by: Will Stone (Labour - Swindon North)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential merits of basing the energy cap for renewable energy.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government has made no such assessment. The criteria around the setting of the energy price cap is a matter for Ofgem.
On Wednesday 27 August, Ofgem confirmed the Q4 price cap will be set at £1,755 per year for a typical dual fuel household paying by Direct Debit – an increase of £35 from the current price cap (£1,720). This would cost households an extra £2.93 a month for three months. We know that any price rise is a concern for families. Wholesale gas costs in the price cap are 77% above their levels in the year up to Russia’s invasion of Ukraine. That is the fossil fuel penalty being paid by families, businesses and our economy.
That is why the only answer for Britain is this Government’s mission to get us off the rollercoaster of fossil fuel prices and onto clean, homegrown power we control, to bring down bills for good.