Renewable electricity generation will be key to securing more low-cost homegrown energy. The Government will support investment in the sector through the UK’s flagship scheme for low carbon generation (Contracts for Difference) which from next year will move to annual auctions. This will help further accelerate the deployment of clean, low-cost generation.

The precise mechanics of the temporary Cost-Plus Revenue Limit will be subject to a consultation to be launched shortly, enabling those affected to share their views. The measure will allow generators to cover their costs and receive an appropriate revenue that reflects their operational output, investment commitment and risk profile.

The Government has no plans to direct the Competition and Markets Authority, which is an independent regulator, to update the calculations in its online platforms and digital advertising study. However digital competition is a priority for the Government as shown by our plans to address the far-reaching power of the biggest tech firms, through a new pro-competition regime for digital markets as reaffirmed in the consultation response published on 6 May.

The Government is clear that retailers should pass the 5 pence per litre cut in Fuel Duty on to consumers immediately.

The CMA has been closely monitoring the situation and will continue to do so. The Government is ready to support the CMA to use their powers to act against petrol stations if there is evidence that they are infringing competition or consumer law. This could ultimately lead to fines or legally binding commitments from companies to change their behaviour.

The calculation of distributable profits must take the profits of the company as set out in the company’s accounts as its starting point. However, directors must also take into account additional factors set out in Part 23 of the Companies Act 2006. For example, for certain insurance companies that are authorised under the Solvency 2 Directive this includes the factors set out in s833A. The effect of these additional factors is to ensure that a company may only make distributions out of profits available for the purpose. The UK Endorsement Board is only required to assess international accounting standards against the criteria in Regulation 7(1) in SI 2019/685.

The Government remains committed to tackling consumer rip-offs and bad business practices, including profiteering.

The CMA monitors firms suspected of profiteering to challenge unjustifiable price increases and stands ready to take enforcement action where there is evidence that competition or consumer protection law has been broken.

The Government continues to monitor the operation of consumer markets and keeps all options under review to ensure good value and service for consumers.

The Government monitors the margin profits of petrol and diesel, but individual months do not necessarily reflect broader trends. Competitive markets ensure that consumers get a fair deal when they visit the pumps and that road fuel prices stay as low as possible.

The Department’s officials are in regular contact with the major companies in the fuel supply industry, including those with petrol retail operations, to discuss a range of issues.

This Department’s analysis shows that retail prices of petroleum products, such as petrol and diesel, are primarily driven by the underlying price in the global market of crude oil and by exchange rates.

The Government has kept fuel duty frozen for the twelfth consecutive year, helping the average UK driver save a cumulative £1,900.