Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to take steps to allow consumers to challenge the charges of a privately owned utility when no other utility services operate in their area.

Energy suppliers are bound by a universal service obligation under standard condition 22 of the gas and electricity Standard Licence Conditions. This means they are required to offer terms to any domestic consumer who asks, ensuring consumers have access to energy.

For customers on a domestic contract, the mechanism for ensuring fair pricing is Ofgem’s Price Cap, which allows suppliers to recoup genuine costs with a small allowance for profits.

For domestic customers who receive energy via non-domestic contracts, there is legislation which sets a maximum price that can be charged for electricity and gas which has already been bought from a licensed supplier.