Energy: Profits
The question
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
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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