Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what discussions she has had with Ofgem on (a) the temporary increase to the price cap to pay off debt and (b) whether energy companies will use this money to reduce indebted customers’ balances.

In England, estimates indicate that the government support provided prevented 389,000 households from becoming fuel poor in 2023.

Despite unprecedented support with bills, the Government recognises consumer energy debt as a large and growing issue and understands the cost-of-living challenges households are facing.

Ofgem has a responsibility for setting the price cap at which suppliers can recover costs they incur, and the government expects suppliers to do all they can to support customers in debt, particularly vulnerable customers.

We welcome Ofgem’s ‘Affordability and debt in the domestic retail market – call for input' published 11 March 2024 and look forward to seeing the results and Ofgem’s next course of action. Details of Ofgem’s consultation can be found here: https://www.ofgem.gov.uk/publications/affordability-and-debt-domestic-retail-market-call-input