Home / Sources / Select Committees / 6th Special Report - Tackling the energy cost crisis: Ofgem…
Select committee: Energy Security and Net Zero Committee

6th Special Report - Tackling the energy cost crisis: Ofgem Response

Published 19 March 2026

Energy Security and Net Zero Committee The cost of energy Report on parliament.uk ↗

At a glance

The government's response

This document responds to 5th Report - Tackling the energy cost crisis.

This is the government's response, published 19 March 2026.

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

Ofgem agrees with the Committee on some points, including the scale of energy debt, but does not agree that windfall profits should fund the Debt Relief Scheme and sets out why it is not adopting several other recommendations.

  • On debt, Ofgem intends to deliver the Debt Relief Scheme in two phases "throughout 2026", with Phase 1 expected to help 200,000 customers and remove up to £500 million of debt. It proposes recovering costs from domestic customers, and "does not expect the DRS to remain a permanent feature of the energy market".
  • On the payment method premium, Ofgem does not agree that the financially vulnerable are "universally expected to pay more". It says a single cap would increase bills for the majority of financially vulnerable customers.
  • On standing charges, Ofgem says it does not set the level of the charge. It will provide an update "later this spring", has begun a Cost Allocation Review, and is "not proposing immediate changes" on prepayment meter standing charges.
  • On non-domestic customers, Ofgem's judgement is that there are "significant risks and challenges" in a price cap. It does not consider a 14-day cooling off period "likely to solve the issue", and awaits Government legislation to become the regulator for energy brokers.

Read the government's response ↗ Report an error

Sources