Energy: Prices

(asked on 16th January 2018) - View Source

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

To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reasons the draft Domestic Gas and Electricity (Tariff Cap) Bill proposes to require Ofgem to review the energy price cap once a year from 2020 rather than keeping the price cap under constant review.


Answered by
 Portrait
Claire Perry
This question was answered on 19th January 2018

The review in 2020, and in 2021 and 2022 if the cap remains in place, will inform Ofgem’s report on whether the conditions for effective competition are in place, and Ofgem’s recommendation. This will inform the Secretary of State’s decision on whether the cap should remain in force.

It would not be practicable to keep the need for the price cap under constant review, however, in designing the method for setting the level of the price cap we would expect that Ofgem would need to consider how to take account of relevant short-term changes in the market.

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