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

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has made an assessment of the effect of proposals to remove appeal rights in the draft Domestic Gas and Electricity (Tariff Cap) Bill on levels of investment in (a) the energy sector and (b) other sectors; and if he will make a statement.

The Bill, subject to the will of Parliament, will place a new duty on Ofgem to implement a cap on standard variable and defaults tariffs, so it does not remove an existing right of appeal. Energy companies would be able to challenge Ofgem’s decision on the setting of the cap by way of judicial review.

The Domestic Gas and Electricity (Tariff Cap) Bill is also clear that Ofgem must have regard to the need to ensure that holders of supply licences who operate efficiently are able to finance activities authorised by the licence. It would be for the independent regulator, Ofgem, to make its assessment of efficient operations. Ofgem is not required to have regard to investment projects that are outside the scope of the activities authorised by the supply licence.