Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether he is taking steps to encourage energy companies to ensure that retail prices reflect wholesale prices.

It is common for suppliers to use hedging strategies to buy energy months in advance to protect their customers from some fluctuations in wholesale costs. Leading to a lag before lower prices feed through to consumers. Ofgem now sets the energy price cap every three months, rather than six months to reduce the lag and ensure changes in the wholesale energy prices are passed on to consumers more quickly.