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 …

Clear

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

8 items
1 Conclusion 5th Report - Tackling the energy cost c… Acknowledged

Accelerate effective data sharing between stakeholders to improve support schemes and tackle fuel poverty.

More effective data sharing between key stakeholders will be essential in making all government support schemes fairer, better targeted and cost effective. We welcome the Government’s plans to improve data sharing across Whitehall but believe it must move further and faster, recognising that more effective data sharing will be instrumental …

Government response. The government acknowledges the priority of improving data sharing and outlines ongoing work across departments, including a working group with industry, to enhance data accuracy and availability for better targeting support.
Department for Energy Security and Net Zero
3 Conclusion 5th Report - Tackling the energy cost c… Acknowledged

Millions in fuel poverty or with disabilities remain ineligible for Warm Home Discount scheme.

The Warm Home Discount is a crucial mechanism to tackle fuel poverty and we welcome the Government’s plans to broaden eligibility for the scheme for winter 2025–26. However, it is deeply troubling that millions of households in fuel poverty and many living with disabilities or long-term health conditions are still …

Government response. The government highlights its recent expansion of the Warm Home Discount to include an additional 2.7 million households, bringing coverage to 45% of fuel-poor households. It notes the committee's recommendation for further extension and increased value, stating it will explore …
Department for Energy Security and Net Zero
8 Conclusion 5th Report - Tackling the energy cost c… Acknowledged

Critical need exists for targeted bill support and social tariff for vulnerable consumers.

There is a critical need to provide greater, targeted bill support for low income and vulnerable consumers throughout the year in the form of a social tariff. We are concerned by the lack of progress to date. (Conclusion, Paragraph 34)

Government response. The government acknowledges the need for more targeted support for vulnerable households and indicates it will consider 'all options for future bill support' as part of a consultation on extending the Warm Home Discount and a review of the Fuel …
Department for Energy Security and Net Zero
11 Recommendation 5th Report - Tackling the energy cost c… Acknowledged

Explore reforming Cold Weather Payment to provide daily payments during sub-zero forecasts.

The Government should explore reform of the Cold Weather Payment considering whether a £10 payment could be made to eligible households every day that the Met Office forecasts that the average temperature will be zero degrees or below the following day. This should be subject to the usual cost benefit …

Government response. The government states it keeps policies under review but describes the current Cold Weather Payment system, justifying its existing structure of £25 for seven consecutive days of cold weather, without committing to explore the proposed daily payment reform.
Department for Energy Security and Net Zero
12 Conclusion 5th Report - Tackling the energy cost c… Acknowledged

UK experiencing a severe and escalating energy debt crisis impacting millions of customers.

The UK is experiencing a severe energy debt crisis that shows little sign of abating. Millions of customers currently owe more than £4bn in debt and arrears, a record figure that has more than tripled in just five years. This is having a devastating impact on the wellbeing of millions, …

Government response. The government acknowledges the severe energy debt crisis and the ongoing impact of the energy price crisis, but mainly describes Ofgem's reforms to price control mechanisms to prevent future windfall profits and ensure value for money, without committing to specific …
Department for Energy Security and Net Zero
13 Conclusion 5th Report - Tackling the energy cost c… Acknowledged

Energy networks accrued £4bn windfall profits while consumers face severe energy debt crisis.

While millions of consumers struggle with energy debt and the fallout of the recent energy price crisis, there is no shortage of money in the wider energy system. It is completely inexcusable that while households are forced to ration energy and choose between heating and eating, energy networks have enjoyed …

Government response. The government acknowledges the energy debt problem and details Ofgem's active reforms to price control mechanisms (RIIO-3) to prevent future windfall profits by strengthening controls and cutting the link with inflation, which it states should deliver value for money.
Department for Energy Security and Net Zero
15 Conclusion 5th Report - Tackling the energy cost c… Acknowledged

Financially vulnerable customers incur unjustifiable "poverty premium" due to chosen energy payment method.

It is unjustifiable that financially vulnerable customers are expected to pay more for their energy under the Energy Price Cap because of their chosen payment method. This constitutes a poverty premium. (Conclusion, Paragraph 57)

Government response. The government acknowledges the belief that all consumers should pay a fair price and outlines the Energy Price Cap's purpose, noting Ofgem's responsibility for its methodology. It further describes the Warm Homes Plan as a significant investment to make bills …
Department for Energy Security and Net Zero
16 Conclusion 5th Report - Tackling the energy cost c… Acknowledged

Time-of-use energy tariffs risk deepening inequalities without vulnerable consumer protections.

Time-of-use tariffs that allow customers to optimise the benefits of low carbon technologies such as heat pumps, electric vehicles and solar panels are welcome additions to the retail market, rewarding customers with low energy prices and supporting flexibility of the energy system. However, they are mostly designed for affluent consumers, …

Government response. The government acknowledges the belief in fair energy prices and highlights the existing Energy Price Cap and the Warm Homes Plan, a significant investment in home upgrades to reduce bills for vulnerable households, but does not directly address the concerns …
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 · Ofgem, Jonathan Brearley · Department for Energy Security and Net Zero 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 ↗