Energy: Prices

Department for Business, Energy and Industrial Strategy written question – answered on 26th February 2018.

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Photo of Mark Menzies Mark Menzies Conservative, Fylde

To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reasons Ofgem recently increased the level of the pre-payment metre price cap.

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)

The prepayment safeguard tariff (price cap) tariff was introduced by the Competition and markets Authority (CMA) following its investigation into the energy markets. The methodology set by the CMA, and administered by Ofgem, to calculate the cap is based on wholesale costs, network costs, policy costs, operating costs and costs specifically associated with prepayment meters. The recent change reflected changes in these underlying costs.

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