Energy: Price Caps
The question
To ask the Secretary of State for Energy Security and Net Zero, if he will meet with Ofgem to discuss the potential merits of reducing the energy price cap for winter 2024-25.
Answered by Miatta Fahnbulleh
The Energy Price Cap is set by Ofgem and there are different costs included in the price cap, such as the wholesale cost of energy. Any changes to these costs will affect how much the price cap will be each time it is reviewed, and the main driver of the price cap increase for the period 1 October to 31 December 2024 was an increase in wholesale energy prices.
As such, the Government believes the only way to protect consumers permanently is to speed up the transition towards homegrown clean energy and reduce our reliance on volatile international fossil fuel markets.
Whilst we make this transition to clean power by 2030, the Government is committed to ensuring vulnerable households are supported with their energy bills. We are looking at all options on how to make energy bills more affordable for these households.
In the short-term, we are continuing to deliver the Warm Home Discount which provides a £150 annual rebate on energy bills for eligible low-income households. We are also working with energy suppliers to ensure they are providing additional support to vulnerable customers that are struggling with bills
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