“As one of the two UK-based, publicly listed major energy suppliers, our customers can see exactly what profits we are making and where they are made. However, we are happy to work with Ofgem, BDO or anyone on exploring if there are ways to improve customer understanding of these profits..
“We aim for an average profit margin in Energy Supply of around 5% over the medium term as we believe this is a fair and sustainable level. We are committed to making energy as affordable as possible and are proud that the report shows our ‘costs to serve’ are the lowest of all major suppliers.
“It is particularly encouraging to see the Committee recognising that funding government policies through taxation would be less regressive than requiring energy companies to recoup the costs of these policies on their behalf through bills. Recovering costs through taxation is undoubtedly more equitable.”