Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of (a) capping and (b) increasing regulation of the profits of Distribution Network Operators.

Ofgem, as the independent energy regulator, uses the price control process to set the amount that Network Operators can spend and the returns they can make on investment, in a way that allows the funding needed for a more resilient, low-carbon network while protecting consumers from excessive costs.

The Government engages regularly with Ofgem and the network companies throughout the development of the price controls. The next electricity distribution network price control will commence in April 2023, with Final Determinations from Ofgem expected shortly.