Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what discussions he has had with (a) OFGEM and (b) energy companies on VAT inclusion in (i) energy billing documents and (ii) online quotes for consumers.

My Rt. Hon. Friend the Secretary of State and I have regular meetings with Ofgem on a range of issues.

Quotes on energy pricing and how those quotes are broken down for customers are a matter for energy suppliers. However, the Government takes the issue of accurate billing very seriously. All suppliers must take all reasonable steps to reflect accurate meter readings in bills or statements sent to customers where these have been provided by a customer or obtained by the supplier. This is laid out in the Supplier Licence Conditions (SLCs) for both electricity and gas.

Under 31E.10 of both sets of SLCs where the licensee provides a Domestic Customer with any information about the Charges for the Supply of Electricity, gas or any other type of charge or fee (the “Applicable Charges”), the licensee must inform the Domestic Customer of whether the Applicable Charges include or exclude value added tax.