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

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that utility companies pass on decreases in wholesale energy prices to consumers.

The Domestic Gas & Electricity (Tariff Cap) Act places a duty on Ofgem to set a temporary price cap on standard variable and default tariffs.

On 6th September 2018, Ofgem published a statutory consultation, in which they propose a methodology for setting the cap level which takes account of supplier costs including for the wholesale cost of energy. Ofgem propose setting the initial level of the cap at £1,136 and will update the cap on a regular basis to reflect changes in costs, including wholesale energy prices.