To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to require energy suppliers to take the burden of increases in wholesale energy price costs when the OFGEM energy price cap announcement takes effect in October 2022.
14 March 2022
It is Ofgem’s role, as independent regulator, to set a fair level for the price cap. Legislation sets out that Ofgem must review the level of the cap at least once every 6 months to ensure the cap level appropriately reflects the underlying costs of energy, and the need to ensure that energy suppliers who operate efficiently are able to finance their activities.
The Government has confidence in Ofgem, as the independent regulator of the British gas and electricity markets, to appropriately execute its judgement in this regard.