Energy: Prices

(asked on 14th April 2022) - 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 reason the energy price cap does not apply to commercial meters for communal areas in the blocks of flats.


Answered by
Greg Hands Portrait
Greg Hands
Minister of State (Department for Business and Trade)
This question was answered on 26th April 2022

The energy price cap was introduced following a two-year investigation by the Competition and Markets Authority (CMA), which identified that domestic consumers on default tariffs were paying a loyalty penalty.

The CMA found no evidence of a loyalty penalty for consumers supplied via their landlord rather than being supplied directly to a meter in their home. Landlords purchase energy via a negotiated commercial supply contract. Ofgem has a rule in place limiting the maximum resale price at which landlords can resell gas or electricity to their tenants.

The Government is committed to legislating within this parliament to regulate the heat networks sector. In December the Government announced that Ofgem will take on the role of regulator and have new powers to regulate prices in this sector.

Reticulating Splines