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Energy: Prices

Department for Business, Energy and Industrial Strategy written question – answered on 14th February 2018.

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Photo of Deidre Brock Deidre Brock Shadow SNP Spokesperson (Devolved Government Relations), Shadow SNP Spokesperson (Fair Work and Employment), Shadow SNP Spokesperson (Northern Ireland)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential effect of its proposal for an energy price cap on levels of customer switching.

Photo of Claire Perry Claire Perry The Minister of State, Department for Business, Energy and Industrial Strategy, Minister of State (Business, Energy and Industrial Strategy) (Energy and Clean Growth)

As set out in the draft Domestic Gas and Electricity (Tariff Cap) Bill, Ofgem would be required to set the level of the price cap in a way such that, amongst other things, it would maintain incentives for switching and enable effective competition. The price cap would be lifted once the conditions for effective competition are in place in accordance with the process in draft clause 6.

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