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
4 Conclusion 5th Report - Tackling the energy cost c… Deferred

Warm Home Discount value proves insufficient against rising energy bills for vulnerable consumers.

The value of the Warm Home Discount has increased by only £10 since 2011, while household energy bills have risen by more than £500. The current value of the rebate is wholly insufficient to support vulnerable consumers this winter and compounds a severe affordability crisis in this country. Given our …

Government response. The government highlights that eligible households will receive £150 off their winter energy bills and acknowledges the committee's recommendation to increase the rebate's value. It states that it will explore improvements to the level of support and scheme reach during …
Department for Energy Security and Net Zero
6 Conclusion 5th Report - Tackling the energy cost c… Deferred

Retarget Warm Home Discount using tiered approach linked to need, usage, and wholesale prices.

From winter 2026–27, the Warm Home Discount should be retargeted using a tiered approach, so that funding is allocated based on household need and energy usage, and the value of the rebate should be linked to wholesale prices. (Recommendation, Paragraph 29)

Government response. The government states it will explore improvements to the Warm Home Discount scheme, including the level of support and reach, following a consultation. It notes the committee's recommendation to link the rebate value to wholesale prices and aim for a …
Department for Energy Security and Net Zero
9 Recommendation 5th Report - Tackling the energy cost c… Deferred

Launch consultation on energy social tariff by January 2026 for introduction by winter 2026–27.

We recommend that the Government launches a consultation on an energy social tariff by January 2026 and commits to introducing a social tariff on this basis ahead of winter 2026–27. (Recommendation, Paragraph 35)

Government response. The government states it is consulting on extending the Warm Home Discount and will consider all options for future bill support, and has sought views on the design of support for fuel-poor households as part of the Fuel Poverty Strategy …
Department for Energy Security and Net Zero
21 Conclusion 5th Report - Tackling the energy cost c… Deferred

High energy costs exacerbate severe impacts of billing issues, leading to overdue back bills.

Energy bills are generally becoming more accurate, but the high cost of energy means that when billing issues do occur, the impacts are felt far more severely. In an era of smart metering, it is unacceptable that back bills are being issued more than a year after energy was used, …

Government response. The government acknowledges the issue of inaccurate bills and notes Ofgem is undertaking a broad assessment of billing rules, including back billing, with consultations extending to January 2026. The government is also consulting on strengthening the Energy Ombudsman's powers and …
Department for Energy Security and Net Zero
22 Conclusion 5th Report - Tackling the energy cost c… Deferred

Limit smart meter back-billing period to six months and publish supplier penalty data for breaches.

Ofgem should limit the back billing period to six months for customers with a smart meter. It should also publish annual data on the penalties it gives energy suppliers for breaching its back billing rules. (Recommendation, Paragraph 79)

Government response. The government states this is a matter for Ofgem, which is currently undertaking a broad assessment of billing rules, including back billing, with consultations due by late January 2026. The government does not commit to the specific six-month limit or …
Department for Energy Security and Net Zero
23 Conclusion 5th Report - Tackling the energy cost c… Deferred

Smart meter rollout remains sluggish, unreliable, and fails to achieve adequate GB coverage.

The smart meter rollout has been sluggish, unreliable and has failed to achieve adequate coverage across Great Britain. Poor levels of reliability mean that many consumers are unable to benefit from more accurate billing, which has increased the occurrence of billing issues. It also limits access to flexible tariffs and …

Government response. The government acknowledges the smart meter rollout issues and has consulted on a new policy framework for 2026-2030, proposing updated smart meter rollout targets by 2030 and more stringent requirements for suppliers to ensure meters are functioning in smart mode …
Department for Energy Security and Net Zero
26 Conclusion 5th Report - Tackling the energy cost c… Deferred

Reducing Energy Ombudsman escalation time risks increased caseloads, slower resolutions, and higher consumer bills.

We have reservations about the Government’s proposal to reduce the time before a case can be escalated to the Energy Ombudsman from eight to four weeks. This would likely inflate the volume of cases referred to the Ombudsman, which might slow down the process for consumers to achieve redress and …

Government response. The government acknowledges the concerns regarding its proposal to reduce the Energy Ombudsman escalation period and states it is keen to identify exceptions to shortened timescales. It expects to publish an update on its consultation after carefully considering stakeholder views.
Department for Energy Security and Net Zero
31 Recommendation 5th Report - Tackling the energy cost c… Deferred

Develop and introduce an opt-in energy bills discount scheme for businesses within six months.

We agree with Make UK that the Government should introduce an opt-in energy bills discount scheme for businesses, whereby the Government provides eligible businesses with a unit rate discount, up to a maximum value, when wholesale prices rise above a certain price threshold, and businesses pay into the scheme when …

Government response. The government acknowledges the challenge of high industrial electricity prices and details existing and planned support schemes. However, it defers committing to the recommended opt-in energy bills discount scheme, stating it will engage with Make UK on alternative approaches and …
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 ↗