Electricity: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the gap between market prices and average tariffs charged by electricity suppliers over the next five years.
Answered by Miatta Fahnbulleh
Under the default tariff cap, Ofgem has capped the profits of energy suppliers in the retail market to ensure excessive profits aren’t made. There are different costs included in the price cap and any changes to these costs affect how much the price cap will increase or decrease each time it is reviewed. For the period 1 April to 30 June 2025, the main cost increase is due to an increase in the wholesale price of energy that suppliers buy from global fossil fuel markets.
The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. The creation of Great British Energy will help us to harness clean energy and have less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030.
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