Select committee: Energy Security and Net Zero Committee

First Report - Preparing for the winter

HC 1720 Published 23 September 2023

Energy Security and Net Zero Committee Preparing for the winter Report on parliament.uk ↗

At a glance9 recommendations and 3 conclusions · Government response published 15 December 2023 (deadline 23 November 2023)

The government's response

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government's response describes existing schemes and reforms across energy bill support, fuel poverty and consumer standards, does not intend to re-open the Energy Bills Support Scheme or its Alternative Funding, and says it will keep support under review.

On households that missed out on the Energy Bills Support Scheme, the Government "does not have any plans to re-open the EBSS AF", and says it "will continue to closely monitor energy prices and keep energy support schemes under review".
On the Warm Home Discount, it says it has extended the scheme to 2025/26 and reformed it to remove any "first come first served aspect", and it "continues to explore options to make the WHD more flexible".
On standing charges, it says this is "a matter for Ofgem", notes Ofgem's call for input published on 16 November, and says removing the charge would create "distributional impacts". It will "work closely with Ofgem".
On smart meters, it "has also committed to consult" on options to further incentivise or require smart meter installation for recipients of the Energy Company Obligation (phase 4) and the Great British Insulation Scheme. No date is stated.

Read the government's response ↗ Report an error

What the committee recommended 12

2
Warm Home Discount scheme suffers from limited availability and first-come, first-served allocation. Conclusion · paragraph 19
3
Extend Warm Home Discount to all low-income and fuel-poor households without first-come, first-served limits. Recommendation · paragraph 20
4
Implement a social tariff and efficiency measures for vulnerable households, streamlining existing schemes. Recommendation · paragraph 24
5
Revise Cold Weather Payment for daily rates, minimum temperature, and advance payments. Recommendation · paragraph 27
6
Facilitate local authorities to share best practice in Household Support Fund delivery. Recommendation · paragraph 30

See all 12 recommendations and conclusions

Sources

First Report - Preparing for the winter ↗The committee's report, HC 1720, parliament.uk
First Special Report - Preparing for the winter: Government Response to the Committee’s First Report of Session 2022–23 ↗The government's response, 15 December 2023, parliament.uk

Recommendations and conclusions 12

2
Warm Home Discount scheme suffers from limited availability and first-come, first-served allocation. Conclusion · paragraph 19 · addressed to Department for Energy Security and Net Zero Conclusion (the committee's words)
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.
3
Extend Warm Home Discount to all low-income and fuel-poor households without first-come, first-served limits. Recommendation · paragraph 20 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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 basis.
4
Implement a social tariff and efficiency measures for vulnerable households, streamlining existing schemes. Recommendation · paragraph 24 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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 from the energy savings that more energy efficient homes and appliances can bring. We recommend that such a social tariff should also be accompanied with measures that enable energy efficiency improvements. In the longer term, the Government should streamline the various existing schemes into a more targeted form of support for the most vulnerable, especially over the winter months.
5
Revise Cold Weather Payment for daily rates, minimum temperature, and advance payments. Recommendation · paragraph 27 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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 based on the daily minimum temperature and not on an average; and to be provided in advance of forecast cold events.
6
Facilitate local authorities to share best practice in Household Support Fund delivery. Recommendation · paragraph 30 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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 effectively.
7
Mandate energy suppliers provide enhanced support, time, and attention to all customers, especially vulnerable groups. Recommendation · paragraph 34 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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.
8
Require energy companies to provide priority phonelines for intermediaries supporting vulnerable clients. Recommendation · paragraph 36 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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.
9
Require energy companies to use contact empathy as a measure of customer service success. Recommendation · paragraph 37 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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.
10
Ofgem and energy companies failed to proactively improve consumer standards for winter. Conclusion · paragraph 38 · addressed to Department for Energy Security and Net Zero Conclusion (the committee's words)
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 believe that energy companies have not been sufficiently proactive in anticipating and exceeding the expectations of Ofgem and the public.
11
Mandate Ofgem and energy companies to adopt a proactive culture improving consumer standards. Recommendation · paragraph 39 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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 customers. We expect Ofgem to be quicker in challenging energy companies where they are failing to deliver quality customer service.
12
Require Government to revise unfair standing charge structure with a consumption-based tariff model. Recommendation · paragraph 46 · addressed to Department for Energy Security and Net Zero Recommendation (the committee's words)
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 a rising block tariff (also known as a consumption-based tariff) based on per unit cost, which would correlate costs with how much energy a household uses; • make clear to consumers the breakdown of the standing charge between network costs, operational costs and policy costs; and • remove operational costs from the standing charge, as these should be borne solely in consumer bills. Suitable mitigations should be adopted to ensure that high-need vulnerable groups are not penalised by the removal of a standing charge.
13
Accelerate smart meter rollout by energy companies, prioritising fuel poor households with incentives. Conclusion · paragraph 50 · addressed to Department for Energy Security and Net Zero Conclusion (the committee's words)
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 smart meter, with priority given to the fuel poor.