Written questions, answers and statements

Energy: Profits

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Question for Department for Energy Security and Net Zero

UIN 40787, tabled on 24 March 2025

Question

Kirith Entwistle
Labour
Bolton North East
Commons

To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to prevent energy companies profiting from price increases.

Answer

Miatta Fahnbulleh
Labour
Peckham
Commons

Answered on

28 March 2025

Under the default tariff cap, Ofgem has capped the profits of energy suppliers in the retail market to ensure they do not make excessive profits. Since August 2023, the Earnings Before Interest and Tax allowance means that the percentage that energy suppliers can make in profits is capped at 2.4%.

The Government and Ofgem expect suppliers to act responsibly and pass on any reductions in energy prices to consumers. Ofgem has been clear that as prices fall and more consistent profits return, suppliers must act responsibly and pass these reductions on to customers.

Answered by

Department for Energy Security and Net Zero
Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.