Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 1 May 2024 to Question 23954 on Energy: Debts, what allowance for servicing consumer debt is permitted by Ofgem in setting the level of the Default Tariff Cap.

Ofgem has announced a one-off price cap adjustment of £28 (equivalent to around £2.33 per month) to be applied between April 2024 and March 2025 for direct debit and standard credit customers. This is intended to enable suppliers to recover reasonable costs as a result of increased levels of bad debt, ensuring the retail energy market remains resilient and suppliers are able to offer consumers an appropriate level of support in managing their debts.