Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what mechanisms will be used to ensure that electricity suppliers pass on the full value of the VAT reduction to domestic customers.

My Rt. Hon. Friends the Secretary of State and Mr Chancellor of the Exchequer have written to all energy suppliers on this issue. Officials in DESNZ and HM Treasury are also working with energy suppliers on a robust system that ensures this reduction is fully passed on to consumers.

Suppliers have confirmed they will pass the VAT reduction on electricity on to all of their customers, including those on fixed tariffs, and it remains the Government’s clear expectation that they do so.

The treatment of these specific charges falls under existing VAT mechanisms governed by HMRC rules.