To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that the cost to the public purse of the Energy Price Guarantee is not increased by the profit margins of energy providers.
Answered on
18 November 2022
The Energy Price Guarantee discount is set by the Government. The costs of the scheme are linked to changes in energy wholesale prices, as reflected in the Ofgem price cap, and the volume of energy consumed by households.
Exchequer funding provided to the energy suppliers under the Energy Price Guarantee is directly equivalent to the savings made by domestic consumers in their gas and electricity bills. The Government does not pay any premium to energy suppliers.
HM Treasury will conduct a review to consider how to support households with their energy bills from April 2023.