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
9
Deferred
Launch consultation on energy social tariff by January 2026 for introduction by winter 2026–27.
Recommendation
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 Summary
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 review. However, it does not commit to launching a specific consultation on an energy social tariff by January 2026 or introducing one by winter 2026–27.
Department for Energy Security and Net Zero
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31
Deferred
Develop and introduce an opt-in energy bills discount scheme for businesses within six months.
Recommendation
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 …
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Government Response Summary
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 issue a call for evidence on the CPPA market.
Department for Energy Security and Net Zero
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Conclusions (6)
4
Conclusion
Deferred
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 Summary
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 the next scheme period, following a consultation.
6
Conclusion
Deferred
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 Summary
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 more targeted scheme, but does not commit to a specific tiered approach or pricing link for winter 2026–27.
21
Conclusion
Deferred
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 Summary
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 reviewing the Guaranteed Standards of Performance.
22
Conclusion
Deferred
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 Summary
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 data publication but supports better redress mechanisms.
23
Conclusion
Deferred
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 Summary
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 within 90 days. Responses to the consultation are currently being analysed.
26
Conclusion
Deferred
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 Summary
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.