Written Question·Department for Energy Security and Net Zero·UIN 33461

Energy: Price Caps

Tabled: 25 February 2025

Answered: 4 March 2025

Named Day

Question

Andy McDonald

Labour — Middlesbrough and Thornaby East

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the adequacy of the rate of earnings before interest and tax allowance in OFGEM's energy price cap methodology.

Answer

Miatta Fahnbulleh

The setting of the energy price cap is a matter for the independent regulator Ofgem. The earnings before tax and interest (EBIT) allowance allows energy suppliers to make a reasonable profit that ensures long-term investment, while limiting excess profits...

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