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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

3 items
4 Conclusion Fifty-Eighth Report - Energy bills supp… Deferred

Provide analysis of policy impacts on businesses and prevent a financial cliff edge after March 2023.

HM Treasury and the Department do not fully understand the pressures the non-domestic sector will face when the EBRS ends in March 2023, or the potential risk of insolvencies. Many organisations are suffering financially from the aftermath of the pandemic and this has been exacerbated by recent high energy prices. …

Government response. The government agrees but deflects, stating the department will use findings from Ofgem’s non-domestic market review to inform future actions, with further details to be set out in the summer and plans to be taken forward by Autumn 2023, rather …
HM Treasury
26 Conclusion Fifty-Eighth Report - Energy bills supp… Deferred

Marginal electricity pricing links high gas prices to consumer bills, incurring huge public costs.

The approach to pricing electricity in the UK – known as marginal pricing - means that high wholesale gas prices results in high energy bills for consumers. This is because all electricity generators in the market are paid a fixed price per unit of electricity, which is determined by the …

Government response. The government agrees with the conclusion and states it aims to publish a second Review of Electricity Market Arrangements (REMA) consultation in Autumn 2023. The REMA programme will consider various options to protect consumers from future price spikes and ensure …
HM Treasury
28 Conclusion Fifty-Eighth Report - Energy bills supp… Deferred

Decoupling electricity and gas prices needs careful reform for long-term consumer benefits.

We asked about whether the vast majority of the additional cost of energy to UK customers was going into increased profits for the energy sector. Energy UK told us that in looking at decoupling electricity and gas, the government should look at ensuring cheaper prices in the long term. Energy …

Government response. The government agrees with the committee's observation and plans to publish a second Review of Electricity Market Arrangements (REMA) consultation in Autumn 2023. This programme will consider various options to shield consumers from future price spikes and ensure they benefit …
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 …