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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
5 Conclusion 5th Report - Tackling the energy cost c… Accepted in Part

Broaden Warm Home Discount eligibility to include all fuel-poor and vulnerable households.

The eligibility criteria for the Warm Home Discount should be broadened to include all households in fuel poverty and those meeting vulnerability criteria, such as those with disabilities or long-term health conditions. (Recommendation, Paragraph 28)

Government response AI summary
The government states it expanded the Warm Home Discount to cover an additional 2.7 million households, reaching 45% of fuel-poor households. It notes the committee's recommendation for further expansion and commits to exploring options for improving the scheme's reach and providing additional support to fuel-poor …
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Department for Energy Security and Net Zero
18 Conclusion 5th Report - Tackling the energy cost c… Accepted in Part

Ofgem's standing charge proposals risk unfairness and consumer detriment without safeguards.

We welcome Ofgem’s ambition to reassess how costs are allocated across consumer energy bills, but we are unconvinced that its proposals for a mandatory zero or low standing charge tariff option will go far enough to address the inherent unfairness of the existing arrangement of standing charges. Moreover, while consumers … Read more

Government response AI summary
The government agrees with offering choice and lower standing charges, citing a published consultation to move Warm Home Discount costs to the unit rate, which would reduce standing charges by £39 for typical households from April. It also mentions Ofgem's review of disconnections and a …
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Department for Energy Security and Net Zero
24 Recommendation 5th Report - Tackling the energy cost c… Accepted in Part

Set ambitious smart meter targets, including interim rollout and reliability for existing operational devices.

The Government must set ambitious new targets for smart meters by the end of this year, including interim rollout targets to 2030 and strict new targets for suppliers on the reliability of existing smart meters and a requirement that smart meters are operational, not simply installed. (Recommendation, Paragraph 85) Read more

Government response AI summary
The government has opened a consultation on a new policy framework for 2026-2030, proposing that suppliers complete the smart meter rollout by 2030 and meet more stringent requirements to ensure meters are operational within 90 days. Responses to this consultation are currently being analysed, indicating …
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Department for Energy Security and Net Zero
27 Recommendation 5th Report - Tackling the energy cost c… Accepted in Part

Place Energy Ombudsman on statutory footing, publish supplier compliance, and ban debt collection during investigations.

The Government must place the Energy Ombudsman on a statutory footing and data should be published on the compliance of each supplier with its rulings, including whether these are delivered on time. The Government must also ban energy suppliers from carrying out debt collection practices while in the middle of … Read more

Government response AI summary
The government is proposing to explicitly designate the Energy Ombudsman through legislation to strengthen its position and create a legal obligation for suppliers to implement rulings. However, it does not commit to publishing supplier compliance data or a direct ban on debt collection during investigations, …
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Department for Energy Security and Net Zero
30 Conclusion 5th Report - Tackling the energy cost c… Accepted in Part

Industrial energy cost support insufficient and too slow, needing urgent extension to SMEs.

We welcome support to reduce industrial energy costs in the Industrial Strategy but this does not go far or fast enough. Support for just a limited number of businesses underestimates the scale of the challenge and we are concerned that many businesses will not survive until support is introduced in … Read more

Government response AI summary
The government acknowledges the challenges and states that the new British Industrial Competitiveness Scheme (BICS) will reduce electricity costs for up to 7,000 businesses and be available to eligible businesses regardless of size, addressing the call for SME support. It also highlights other support schemes, …
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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.