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

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 16 January 2018 to Question 122980, on Energy: prices, if he will make an assessment of the potential merits of creating a right for energy companies to appeal decisions of Ofgem on the setting of the energy price cap to the Competition and Markets Authority.

In setting the cap the Bill requires Ofgem, among other things, to have regard to the need to set the cap at a level that enables effective competition for domestic supply contracts, the need to maintain incentives for domestic customers to switch and the need to ensure that energy suppliers who operate efficiently are able to finance their activities. There is a requirement for Ofgem to consult on the methodology for the cap and on the licence modification that will introduce the price cap.

Energy companies would be able to challenge Ofgem’s decisions by way of judicial review. The availability of judicial review to scrutinise whether Ofgem has properly implemented the will of Parliament, and had proper regard to the matters Parliament had required Ofgem to consider when setting the cap, is an appropriate appeal route. The Government does not believe it is necessary to produce an assessment of the potential merits of an alternative route of appeal.