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Select Committee · Energy Security and Net Zero Committee

The cost of energy

Status: Open Opened: 18 Feb 2025 9 recommendations 26 conclusions 1 report

In October last year the Committee published its i nterim report on the high costs of energy in the UK making recommendations on how costs fall on consumers in the retail side of the sector. In the second part of this inquiry, the Committee is looking at where costs arise in the system that result … Show more

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Reports

1 report
Title HC No. Published Items Response
5th Report - Tackling the energy cost crisis HC 736 29 Oct 2025 35 Responded

Recommendations & Conclusions

5 items
7 Conclusion 5th Report - Tackling the energy cost c… Accepted

Prioritise reducing energy costs for all consumers as the top policy objective.

For all these reasons we believe that reducing energy costs for everyone should be made the top policy priority. (Conclusion, Paragraph 33)

Government response AI summary
The government explicitly states that reducing energy costs is a top priority and outlines existing and planned measures, including Autumn Budget bill reductions, the clean power mission, Great British Energy, and the Warm Homes Plan, to address this goal.
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Department for Energy Security and Net Zero
20 Conclusion 5th Report - Tackling the energy cost c… Accepted

Reassess Targeted Charging Review outcomes and consult on broader allocation of increased network infrastructure costs.

Ofgem should reassess the outcomes of its Targeted Charging Review and consult on how increased network costs resulting from a sharp increase in investment in electricity infrastructure could be allocated more broadly, including across wider parts of the energy system. It should complete this process by summer 2026. (Recommendation, Paragraph … Read more

Government response AI summary
The government confirms that Ofgem is conducting a Cost Allocation and Recovery Review (CARR), which includes electricity network charges and investment costs, to determine how fixed energy system costs are allocated. Ofgem published a Call for Input in Summer 2025 and will conduct a full …
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Department for Energy Security and Net Zero
25 Conclusion 5th Report - Tackling the energy cost c… Accepted

Energy Ombudsman lacks statutory backing, undermining confidence and emboldening suppliers to ignore rulings.

For most consumers, the Energy Ombudsman provides a good service and we welcome proposals to strengthen its powers and make referrals automatic. However, without statutory backing, the Energy Ombudsman remains toothless, which undermines the confidence of consumers to seek redress and emboldens suppliers to ignore its rulings. Thousands of consumers … Read more

Government response AI summary
The government agrees that too many Energy Ombudsman (EO) rulings are not implemented and is proposing to create an explicit legal obligation on suppliers to implement rulings and to explicitly designate the EO through legislation. Decisions on financial penalties for non-implementation are subject to ongoing …
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Department for Energy Security and Net Zero
29 Conclusion 5th Report - Tackling the energy cost c… Accepted

High industrial energy costs pose an existential threat, with UK prices highest in Europe.

High energy costs pose an existential threat to many UK industries and are among the greatest concerns facing businesses of all sizes. The UK’s industrial electricity prices are the highest in Europe and around four times higher than the US and Canada, which places UK businesses at a severe competitive … Read more

Government response AI summary
The government acknowledges the challenges of high industrial electricity prices and outlines existing support, including increasing electricity network charge discounts to 90% for energy-intensive firms and delivering the new British Industrial Competitiveness Scheme to reduce electricity costs for up to 7,000 businesses. It is also …
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Department for Energy Security and Net Zero
33 Conclusion 5th Report - Tackling the energy cost c… Accepted

Exploitative practices rampant in non-domestic energy market, targeting resource-poor business owners.

We are greatly concerned by exploitative practices in the non-domestic energy market, especially instances of mis-selling and pressure selling, as well as excessive deposits and out-of-contract rates. These practices exploit resource-poor business owners who often lack the time and knowledge to procure a good energy deal. (Conclusion, Paragraph 116) Read more

Government response AI summary
The government acknowledges the committee's concern about exploitative practices in the non-domestic energy market and details ongoing actions, including support for microbusinesses, dispute resolution via the Energy Ombudsman, and plans to appoint Ofgem to regulate energy brokers.
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Department for Energy Security and Net Zero

Oral evidence sessions

8 sessions
Date Witnesses
17 Mar 2026 Jonathan Mills CB · Department for Energy Security and Net Zero, Michael Shanks MP · Department for Energy Security and Net Zero View ↗
4 Mar 2026 Akshay Kaul · Ofgem, Claire Dykta · National Grid Electricity System Operator (ESO), Fintan Slye · National Energy System Operator (NESO), Jonathan Brearley · Department for Energy Security and Net Zero, Jonathan Brearley · Ofgem View ↗
21 Jan 2026 Dr Alastair Martin · Flexitricity, Dr Waqquas Bukhsh · University of Strathclyde, Katrina Young · Energy Systems Catapult, Lawrence Slade · Energy Networks Association (ENA), Professor Jacopo Torriti · University of Reading, Sarah Honan · The Association for Decentralised Energy View ↗
10 Dec 2025 Adam Bell · Stonehaven, Ana Musat · RenewableUK, Professor Michael Grubb · UCL, Susie Elks · E3G, Tom Edwards · Cornwall Insight, Tom Glover · RWE View ↗
15 Oct 2025 Andrew Ward · Scottish Power Customer Business, Chris Norbury · E.ON UK, Chris O'Shea · Centrica, David Buttress · OVO Energy, Rachel Fletcher · Octopus Energy, Simone Rossi · EDF View ↗
9 Jul 2025 Arjan Geveke · Energy Intensive Users Group, Beth Barker · Aldersgate Group, David Mitchell · Chemical Industries Association, David Wigham · Admiral Taverns; and representing British Beer and Pub Association, Paul Wilson · Federation of Small Business, Verity Davidge · Make UK View ↗
25 Jun 2025 Alex Belsham-Harris · Citizens Advice, Beth Martin · Ofgem, Dr Raj Roy · Centrica, Ed Dodman · Ombudsman Services, Jonathan Brearley · Ofgem, Jonathan Lenton · Energy Ombudsman, Katie Watts · MoneySavingExpert View ↗
4 Jun 2025 Angus McCarey · Uswitch, Caroline Abrahams · Age UK, Dhara Vyas · Energy UK, Maria Booker · Fair By Design, Matt Copeland · National Energy Action, Merlin Hyman · Regen View ↗

Who gave evidence

43 witnesses
WitnessOrganisationSessions
Jonathan Brearley · Chief Executive Ofgem 2
Adam Bell · Head of Policy Stonehaven 1
Akshay Kaul · Director of Infrastructure and Security of Supply Ofgem 1
Alex Belsham-Harris · Head of Energy Consumer Markets Citizens Advice 1
Ana Musat · Executive Director – Policy & Engagement RenewableUK 1
Andrew Ward · CEO Scottish Power Customer Business 1
Angus McCarey · Chief Executive Officer Uswitch 1
Arjan Geveke · Director Energy Intensive Users Group 1
Beth Barker · Senior Policy Officer (Industrial Decarbonisation) Aldersgate Group 1
Beth Martin · Director of Consumer Protection and Competition Ofgem 1
Caroline Abrahams · Charity Director Age UK 1
Chris Norbury · Chief Executive Officer E.ON UK 1
Chris O'Shea · Chief Executive Officer Centrica 1
Claire Dykta · Head of Markets National Grid Electricity System Operator (ESO) 1
David Buttress · CEO OVO Energy 1
David Mitchell · Senior Energy and Climate Change Executive Chemical Industries Association 1
David Wigham · Commercial Director Admiral Taverns; and representing British Beer and Pub Association 1
Dhara Vyas · Chief Executive Energy UK 1
Dr Alastair Martin · Chief Strategy Officer Flexitricity 1
Dr Raj Roy · Group General Counsel & Company Secretary Centrica 1
Dr Waqquas Bukhsh · Senior Lecturer, Department of Electronic and Ele… University of Strathclyde 1
Ed Dodman · Director of Regulatory Affairs Ombudsman Services 1
Fintan Slye · Chief Executive Officer National Energy System Operator (NESO) 1
Jonathan Brearley · Permanent Secretary Department for Energy Security and Net Zero 1
Jonathan Lenton · Regulatory Director Energy Ombudsman 1
Jonathan Mills CB · Director General for Energy Markets and Supply Department for Energy Security and Net Zero 1
Katie Watts · Head of Campaigns and Policy MoneySavingExpert 1
Katrina Young · Practice Manager for Heat Policy and Local Energy Energy Systems Catapult 1
Lawrence Slade · Chief Executive Energy Networks Association (ENA) 1
Maria Booker · Head of Policy Fair By Design 1
Matt Copeland · Head of Policy and Public Affairs National Energy Action 1
Merlin Hyman · Chief Executive Regen 1
Michael Shanks MP · Minister for Energy Department for Energy Security and Net Zero 1
Paul Wilson · Policy Director Federation of Small Business 1
Professor Jacopo Torriti · Professor of Energy Economics and Policy University of Reading 1
Professor Michael Grubb · Professor of Energy and Climate Change and Direct… UCL 1
Rachel Fletcher · Director of Regulation and Economics Octopus Energy 1
Sarah Honan · Policy Manager The Association for Decentralised Energy 1
Simone Rossi · CEO EDF 1
Susie Elks · Senior Policy Advisor E3G 1
Showing 40 of 43.