Reduce Profit, Headroom & Tax % From Price cap formula

This petition isn’t directly related to caring, but is currently affecting us all:

Reduce Profit, Headroom and Tax Percentages From Ofgem Price Cap Formula

The Ofgem Price Cap formula calculates EBIT (also known as profit) as 1.9% of the other costs combined. This means that as the energy crisis worsens and costs increase, energy suppliers actually get MORE profit, hence why we’re seeing energy suppliers announcing record profit levels during the crisis.

we are petitioning for Ofgem to set profit and headroom to £10 each and for the government to halve VAT on domestic energy to 2.5%. This would reduce the October 2022 price cap by £170 and will equate to around £220 saving on the predicted £4,400 April 2023 price cap. Cutting this cost will also reduce the government debt accrued between October 2022 and Mar 2023 on the government’s Energy Price Guarantee.