Written question asked by Mark Menzies (Conservative) on Tuesday, 16 January 2018, in the House of Commons. It was due for an answer on Friday, 19 January 2018 (named day). It was answered by Claire O'Neill (Conservative) on Friday, 19 January 2018 on behalf of the Department for Business, Energy and Industrial Strategy.

Energy: Price Caps

Question: To ask the Secretary of State for Business, Energy and Industrial Strategy, for what reasons the impact assessment for the draft Domestic Gas and Electricity (Tariff Cap) Bill does not include quantitative data on the effect of a price cap on (a) investment in the energy sector and (b) customers.

Answer: As set out in the Impact Assessment for the draft Bill, the costs and benefits will depend on the detailed methodology the independent regulator Ofgem adopts to set the level of a tariff cap. The Government does not wish to prejudice the deliberations of Ofgem’s work in establishing the methodology, and has therefore not included quantified analysis of the costs and benefits in the Impact Assessment, but has included a qualitative discussion.

Secondary information