Energy Bills Support

Government develops new energy market consumer protection as retail market struggles financially.

Following our evidence session government announced in its spring statement that it would maintain the EPG at £2,500 until the end of June 2023.63 The government has committed to consulting on amending the EPG as soon as is feasible after April 2023, so that those who use very large volumes … Read more Following our evidence session government announced in its spring statement that it would maintain the EPG at £2,500 until the end of June 2023.63 The government has committed to consulting on amending the EPG as soon as is feasible after April 2023, so that those who use very large volumes of energy have their support capped, whilst ensuring most households can continue to benefit. The Department is also leading on developing a new approach to consumer protection in energy markets from April 2024, working in conjunction with Ofgem, including options such as social tariffs as part of wider retail market reforms. The objective of this new approach will be to deliver a fair deal for consumers, ensure the energy market is resilient and investable over the long- term, and support an efficient and flexible energy system.64 The Department told us that it had received lots of representations from industry groups and from consumer groups about how the different models for the price cap might play into the options for the future. It also told us that Ministers will want to look at the role of the price cap when considering the vision for what comes after the EPG.65 Energy UK told us that it thought the retail market was also not currently working for suppliers. Household customers owe about £25 billion of debt now and on average retail energy companies make around 2.5% loss a year.66 Impact of gas prices on electricity prices Show less