Source · Select Committees · Energy Security and Net Zero Committee
5th Report - Tackling the energy cost crisis
Energy Security and Net Zero Committee
HC 736
Published 29 October 2025
Government response
4th Special Report – Tackling the energy cost crisis: Government Response · published 21 Jan 2026
Recommendations & Conclusions
7
Conclusion
Accepted
Prioritise reducing energy costs for all consumers as the top policy objective.
Conclusion
For all these reasons we believe that reducing energy costs for everyone should be made the top policy priority. (Conclusion, Paragraph 33)
Government Response 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.
Department for Energy Security and Net Zero
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20
Conclusion
Accepted
Reassess Targeted Charging Review outcomes and consult on broader allocation of increased network infrastructure costs.
Conclusion
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. …
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Government Response 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 consultation on options.
Department for Energy Security and Net Zero
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25
Conclusion
Accepted
Energy Ombudsman lacks statutory backing, undermining confidence and emboldening suppliers to ignore rulings.
Conclusion
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 …
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Government Response 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 consultation by the government and Ofgem.
Department for Energy Security and Net Zero
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29
Conclusion
Accepted
High industrial energy costs pose an existential threat, with UK prices highest in Europe.
Conclusion
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 …
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Government Response 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 issuing a call for evidence this year on developing the Corporate Power Purchase Agreement market.
Department for Energy Security and Net Zero
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33
Conclusion
Accepted
Exploitative practices rampant in non-domestic energy market, targeting resource-poor business owners.
Conclusion
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 …
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Government Response 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.
Department for Energy Security and Net Zero
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