Energy: Profits

(asked on 24th March 2025) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to prevent energy companies profiting from price increases.


Answered by
Miatta Fahnbulleh Portrait
Miatta Fahnbulleh
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 28th March 2025

Under the default tariff cap, Ofgem has capped the profits of energy suppliers in the retail market to ensure they do not make excessive profits. Since August 2023, the Earnings Before Interest and Tax allowance means that the percentage that energy suppliers can make in profits is capped at 2.4%.

The Government and Ofgem expect suppliers to act responsibly and pass on any reductions in energy prices to consumers. Ofgem has been clear that as prices fall and more consistent profits return, suppliers must act responsibly and pass these reductions on to customers.

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