Energy: Price Caps

(asked on 28th February 2024) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what discussions her Department has had with Ofgem on its decision to allocate the temporary adjustment to the price cap to customers equally.


Answered by
Amanda Solloway Portrait
Amanda Solloway
Government Whip, Lord Commissioner of HM Treasury
This question was answered on 4th March 2024

The Departmental for Energy Security and Net Zero’s ministers and officials regularly discuss with Ofgem issues relating to energy market.

The setting of the price cap rate is a matter for Ofgem, and the temporary adjustment announced is to address suppliers’ costs related to increased levels of consumer debt. It will be added to bills of customers who pay by direct debit or standard credit. Prepayment customers will not be impacted by the extra charge as many do not build up the same level of debt because they top up as they go.

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