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
Recommendations
24
Accepted in Part
Set ambitious smart meter targets, including interim rollout and reliability for existing operational devices.
Recommendation
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 …
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Government Response 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 a future commitment to new targets.
Department for Energy Security and Net Zero
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27
Accepted in Part
Place Energy Ombudsman on statutory footing, publish supplier compliance, and ban debt collection during investigations.
Recommendation
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 …
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Government Response 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, noting that Ofgem already has rules for fair and proportionate debt recovery.
Department for Energy Security and Net Zero
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Conclusions (3)
5
Conclusion
Accepted in Part
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 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 and excluded low-income households, following a consultation response.
18
Conclusion
Accepted in Part
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 …
Government Response 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 future Call for Evidence in 2026 on gas network transition, but doesn't directly address the committee's specific concerns about the sufficiency or risks of Ofgem's mandatory zero/low standing charge tariff proposals.
30
Conclusion
Accepted in Part
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 …
Government Response 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, reiterating its targeted approach.