<p>In the retail energy sector Ofgem has designed the energy price cap on household default tariffs so that retail prices include a modest allowance for profit. The non-domestic supply sector doesn’t have a price cap as there has been no evidence to date of excessive profits, and prices are determined based on individual supply contracts. Ofgem is carrying out a review of the business energy supply market.</p><p> </p><p>The Energy Profits Levy is a temporary 35% surcharge on exceptional profits and comes on top of 40% headline tax rate applied to profits from UK oil and gas production, bringing the overall combined tax rate to 75%.</p>