Select Committee · Public Accounts Committee

Energy Bills Support

Status: Closed Opened: 18 Jan 2023 Closed: 24 Sep 2023 3 recommendations 25 conclusions 1 report

In September 2022 Government announced the Energy Price Guarantee Scheme and Energy Bill Relief Scheme in response to the energy price crisis. Following on from work done by the National Audit Office on Energy bill support , the Committee will question senior officials at the Department for Business, Energy and Industrial Strategy and the Treasury …

Clear

Reports

1 report
Title HC No. Published Items Response
Fifty-Eighth Report - Energy bills support HC 1074 16 Jun 2023 28 Responded

Recommendations & Conclusions

5 items
1 Conclusion Fifty-Eighth Report - Energy bills supp… Acknowledged

Committee took evidence on energy bills support from various stakeholders.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Energy Security and Net Zero (The Department)2, the Former Permanent Secretary at the Department for Business, Energy and Industrial Strategy (BEIS), and HM Treasury about energy bills support.3 We also took …

Government response. The government highlights the £40 billion spent on energy support and notes it is learning lessons for future schemes. It is continuing to explore options for supporting consumers from April 2024 by improving the retail energy market and consumer standards.
HM Treasury
7 Conclusion Fifty-Eighth Report - Energy bills supp… Acknowledged

Off-grid homes and businesses experienced delays in receiving alternative fuel support.

Some off-grid homes and businesses had to wait longer to receive support compared to the schemes to support consumers connected to the energy grid. The Department started delivering payments through the non-domestic Alternative Fuel Payment Scheme in February 2023. On 6 February 2023, it expected that eligible consumers would receive …

Government response. The government agrees with the observation, highlighting its swift action and the inherent complexity of reaching off-grid households, and is now seeking to learn lessons for future scheme delivery.
HM Treasury
8 Conclusion Fifty-Eighth Report - Energy bills supp… Acknowledged

Delays in alternative fuel support disproportionately impacted Northern Ireland due to higher usage.

The delays to introducing support schemes for customers who use alternative fuels had a greater impact on consumers in Northern Ireland because of the higher percentage of consumers that use these fuels. More than two-thirds (68%) of households in Northern Ireland heat their homes using alternative fuel, like heating oil.16 …

Government response. The government agrees with the observation, explaining its swift action and the complexities of support delivery, and states it is seeking to learn lessons for future schemes, noting that support in Northern Ireland was delivered via a single cash payment …
HM Treasury
9 Conclusion Fifty-Eighth Report - Energy bills supp… Acknowledged

Delays experienced in providing energy bill support to off-grid and rural households.

We asked the Department what were the causes of other delays in getting support to customers. The Former Permanent Secretary told us that, in terms of operational challenges, the most difficult schemes were those where people were being asked to apply. For example, the Department launched its portal for 900,000 …

Government response. The government agrees with the observation, outlining its swift actions and the inherent complexity of delivering support, particularly for application-based schemes, and is seeking to learn lessons for future delivery.
HM Treasury
10 Conclusion Fifty-Eighth Report - Energy bills supp… Acknowledged

Complexity of universal energy support schemes delayed aid for vulnerable consumers.

The Department told us that an important lesson it had learnt from the schemes was the complexity in implementing a universal scheme to reach all energy consumers living under different circumstances. The Former Permanent Secretary explained that the Department did not have enough bandwidth to look at such a complex …

Government response. The government agrees with the observation, acknowledging the complexity of reaching all consumers and that lessons learned are informing planning for future support, with the department seeking to learn lessons on delivery and communications.
HM Treasury

Oral evidence sessions

2 sessions
Date Witnesses
27 Feb 2023 James Bowler CB · HM Treasury, Jeremy Pocklington CB · Ministry of Defence, Jonathan Mills · Department for Energy Security and Net Zero, Phil Duffy · HM Treasury, Sarah Munby · Department for Business, Energy and Industrial Strategy View ↗
23 Feb 2023 Andy Manning · Citizens Advice, Dhara Vyas · Energy UK, Kate Nicholls · UK Hospitality, Paul Wilson · Federation of Small Businesses View ↗

Correspondence

5 letters
DateDirectionTitle
7 Sep 2023 Correspondence from James Bowler, Permanent Secretary, HM Treasury, re Addition…
17 Apr 2023 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for …
17 Apr 2023 Correspondence from Rt Hon Grant Shapps MP, Secretary of State, Department for …
28 Mar 2023 Correspondence from James Bowler, Permanent Secretary, HM Treasury, re follow u…
21 Mar 2023 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for …