Source · Select Committees · Energy Security and Net Zero Committee
First Report - Preparing for the winter
Energy Security and Net Zero Committee
HC 1720
Published 23 September 2023
Recommendations
3
Accepted
Para 20
Extend Warm Home Discount to all low-income and fuel-poor households without first-come, first-served limits.
Recommendation
We recommend that, this winter, the Government works to extend the Warm Home Discount to low-income and fuel-poor households, especially giving consideration to those with disabilities and medical conditions. Discounts should not be based on a first come, first served …
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Government Response Summary
The government stated it had already reformed the Warm Home Discount scheme from winter 2022/23 to provide automatic rebates, remove 'first come, first served' aspects, and target low-income households. It also noted the scheme's extension to 2025/26 and continues to explore options for greater flexibility.
Department for Energy Security and Net Zero
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4
Acknowledged
Para 24
Implement a social tariff and efficiency measures for vulnerable households, streamlining existing schemes.
Recommendation
We urge the Government and energy suppliers to consider implementing a form of social tariff and other measures to protect vulnerable households from being cut off from their energy supplies. We note the challenges vulnerable households can face in benefiting …
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Government Response Summary
The government stated it is exploring options for consumer protection and that there is no consensus on what a social tariff entails. It highlighted existing cost-of-living payments and energy efficiency schemes, and committed to a consultation on the Fuel Poverty Strategy for England in early 2024.
Department for Energy Security and Net Zero
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5
Rejected
Para 27
Revise Cold Weather Payment for daily rates, minimum temperature, and advance payments.
Recommendation
In its current form, the Cold Weather Payment is an outdated, old-fashioned scheme. The Government should revise the Cold Weather Payment as follows: to be applicable on a daily rate after a one- or three-day cold-wave below freezing; to be …
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Government Response Summary
The government defended the current design of the Cold Weather Payment scheme, stating the existing £25 payment for every seven days of severe cold weather is a clear and reasonable measure, and that payments are triggered by forecasts without awaiting actual recorded temperatures.
Department for Energy Security and Net Zero
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6
Accepted
Para 30
Facilitate local authorities to share best practice in Household Support Fund delivery.
Recommendation
We recommend that the Government facilitate local authorities to share best practice in delivering the Household Support Fund so that all local authorities, especially those that are smaller and more rural, may learn from those who have delivered this funding …
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Government Response Summary
The government stated that the Department for Work and Pensions has already delivered a programme of knowledge-sharing and engagement events with Local Authorities for the Household Support Fund, including informational drop-in sessions and conference calls.
Department for Energy Security and Net Zero
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7
Deferred
Para 34
Mandate energy suppliers provide enhanced support, time, and attention to all customers, especially vulnerable groups.
Recommendation
We recommend that Ofgem consider how it should mandate that all customers, and particularly vulnerable groups, get more time, better attention and continuity of support from their energy supplier.
Government Response Summary
The government provided no specific response to this recommendation, addressing it as part of a grouped response with subsequent recommendations.
Department for Energy Security and Net Zero
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8
Deferred
Para 36
Require energy companies to provide priority phonelines for intermediaries supporting vulnerable clients.
Recommendation
We recommend that energy companies be required to provide, on request, a priority phoneline for trusted intermediaries, charities and consumer organisations to access support for their clients over the winter months. This should be implemented ahead of this winter.
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Government Response Summary
The government provided no specific response to this recommendation, addressing it as part of a grouped response with subsequent recommendations.
Department for Energy Security and Net Zero
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9
Accepted
Para 37
Require energy companies to use contact empathy as a measure of customer service success.
Recommendation
We recommend that contact empathy be used as a measure of success in customer service provision by energy companies. This would help to rebuild trust in the sector.
Government Response Summary
The government highlighted Ofgem's Market Compliance Reviews (MCRs) as demonstrating a proactive approach to improving industry consumer standards, covering aspects like customer service and supporting vulnerable customers. It committed to continue working closely with Ofgem to ensure necessary changes are implemented.
Department for Energy Security and Net Zero
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11
Acknowledged
Para 39
Mandate Ofgem and energy companies to adopt a proactive culture improving consumer standards.
Recommendation
Ofgem and energy companies need to adopt a more proactive culture in improving industry consumer standards. Energy companies should not wait to be enforced to certain standards by Ofgem but should be innovating to improve customer satisfaction and attract more …
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Government Response Summary
The government acknowledges its focus on improving consumer standards and states that Ministers have engaged with energy suppliers and Ofgem to foster a proactive culture, while highlighting Ofgem's past Market Compliance Reviews which led to improvement plans and fines for underperforming suppliers.
Department for Energy Security and Net Zero
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12
Deferred
Para 46
Require Government to revise unfair standing charge structure with a consumption-based tariff model.
Recommendation
The current standing charge structure is unfair and regressive and penalises those on lower incomes or who are actively reducing their energy usage. The Government should engage with Ofgem to: • revise the standing charge model and replace it with …
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Government Response Summary
The government stated it had already acted to level prepayment and direct debit standing charges until March 2024, and welcomed Ofgem's commitment to find a permanent solution. It largely deflected the core recommendations on revising the standing charge structure to Ofgem, noting Ofgem's ongoing call for input and highlighting potential distributional impacts of removing standing charges.
Department for Energy Security and Net Zero
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Conclusions (3)
2
Conclusion
Accepted
Para 19
We were disappointed to learn that not all energy providers are required to offer this discount and that providers who do offer it have a limited number of discounts which are given on a first-come, first-served basis.
Government Response Summary
The government details that it reformed the Warm Home Discount scheme in England and Wales from winter 2022 onwards to remove the 'first come first served aspect' and ensure all but the smallest suppliers must participate, expanding the scheme and increasing the rebate value.
10
Conclusion
Acknowledged
Para 38
While we welcome the forthcoming set of consumer standards, we are disappointed that Ofgem did not anticipate the need for significant improvements ahead of this winter. Introducing them from December 2023 will likely be too late to see significant 12 Preparing for the winter differences made this winter. We also …
Government Response Summary
The government acknowledges its focus on improving consumer standards and states that Ministers have engaged with energy suppliers and Ofgem to foster a proactive culture, while highlighting Ofgem's past Market Compliance Reviews which led to improvement plans and fines for underperforming suppliers.
13
Conclusion
Accepted
Smart meters are an important way of incentivising good energy use, providing consumers and companies with information that can help to lower a household’s consumption. Energy companies must accelerate the rollout of smart meters, possibly by offering financial incentives to customers or tying energy efficiency support with installation of a …
Government Response Summary
The government stated it has already implemented a four-year framework of minimum smart meter installation targets until 2025 and requires smart meter advice for households receiving energy efficiency funding. It also committed to consult on potential options to further incentivise or require smart meter installation for recipients of ECO4 and the Great British Insulation Scheme.