Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the adequacy of the rate of earnings before interest and tax allowance in OFGEM's energy price cap methodology.

The setting of the energy price cap is a matter for the independent regulator Ofgem. The earnings before tax and interest (EBIT) allowance allows energy suppliers to make a reasonable profit that ensures long-term investment, while limiting excess profits.

The law requires Ofgem to ensure the cap level reflects the underlying efficient costs of supplying energy.