Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 19
19
Accepted
Consumer and public sector demand significantly influence skills supply and investment.
Conclusion
Consumer and public sector demand have a significant role to play in increasing the demand for, and therefore exerting influence on the supply of, skills. Longer and more detailed time frames will provide certainty not just for consumers in seeking to adopt technologies but also for employers to invest in the skills needed to develop, manufacture and install them. The demand for the work needs to come first for the investment in skills to follow. (Conclusion, Paragraph 91)
Government Response Summary
The government agrees with the conclusion, citing actions to influence demand and certainty such as cancelling the ECO scheme, shifting energy costs, publishing responses on EPC reform and private rented sector energy standards, and committing to consult on hydrogen for home heating.
Government Response
Accepted
HM Government
Accepted
The government agrees with this recommendation We recognise that some energy system costs fall disproportionately on electricity bills which has resulted in distortions between relative gas and electricity costs. We therefore took action at the Budget to remove some of these costs by cancelling the Energy Company Obligation (ECO) scheme. In addition, to make bills fairer, we shifted costs onto public spending with the government funding 75% of the domestic cost of the legacy Renewables Obligation for three years. On the balance of levies between electricity and gas, we will continue to explore ways to lower energy bills for consumers and reduce barriers for consumers to adopt clean technologies. However, any further changes made to electricity bills including the distribution of levies relative to gas, will only be done in a way which is fair to all consumers. On 21st January, the government published a partial response to the EPC reform consultation, alongside a new consultation that asks questions about what an EPC C should look like on new EPCs. We also published the government response to the Private Rented Sector Minimum Energy Efficiency Standards, setting out the new EPC standard for privately rented homes from October 2030. As set out in the Warm Homes Plan, we will consult in due course on our assessment of whether hydrogen should have a role in heating our homes in the future. As hydrogen is not yet a proven technology for home heating, a role would come later and likely be limited.