Recommendations & Conclusions
4 items
22
Conclusion
Seventy-Fourth Report - Bulb Energy
Not Addressed
Over the course of 2022, the government announced £69 billion worth of measures to protect billpayers from price increases. In February 2022, it announced a £200 upfront reduction in customers’ bills from October 2022, which was expected to be repaid by customers over five years from April 2023. In May …
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Over the course of 2022, the government announced £69 billion worth of measures to protect billpayers from price increases. In February 2022, it announced a £200 upfront reduction in customers’ bills from October 2022, which was expected to be repaid by customers over five years from April 2023. In May 2022, this became the Energy Bills Support Scheme (EBSS), with the government doubling the payment to £400 per household and removing the requirement for it to be repaid. In December 2022, it also created the equivalent scheme, Alternative Funding Scheme, for households without a direct relationship with an electricity supplier, such as those living in park homes and care homes.46 44 Qq 6–9, 42–43; C&AG’s Report, paras 1.2, 2.10 45 Qq 10, 18–20 46 Committee of Public Accounts, Energy Bills support, Fifty-Eighth Report of Session 2022–23, HC 1074, 16 June 2023, recommendation 1–2, para 3 18 Bulb Energy
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Government response AI summary
The government's response describes existing and ongoing energy support schemes (EPG, cost-of-living payments, EBDS, WHD) for households and businesses. However, the original committee item was a descriptive statement of past government measures, not a recommendation, and the response does not address any specific implicit recommendations …
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HM Treasury
23
Recommendation
Seventy-Fourth Report - Bulb Energy
Not Addressed
We examined the government’s support for customers’ and businesses’ energy bills in November 2022 and June 2023. We concluded that many vulnerable customers faced extra challenges accessing benefits designed to help people with their energy bills. We also found that the Department was not doing enough to ensure that support …
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We examined the government’s support for customers’ and businesses’ energy bills in November 2022 and June 2023. We concluded that many vulnerable customers faced extra challenges accessing benefits designed to help people with their energy bills. We also found that the Department was not doing enough to ensure that support was reaching some of those most in need, for example the two million consumers on prepayment meters who needed to redeem vouchers to claim their payment through EBSS. We recommended that the Department identify and address any administrative issues that were preventing people from access the support available to them, and that it should set out how it would increase the redemption rate of vouchers.47 When we examined the energy bills support being provided by the Department in June 2023, we found that 76% of vouchers issued to eligible households across Great Britain to claim their £400 payment through the Energy Bills Support Scheme had been redeemed. Uptake was lower in metropolitan areas, with take-up being just 60% in London.48 We therefore asked witnesses how many customers had now redeemed their £400 energy voucher. Ofgem explained that it was using multiple approaches to reach the remaining vulnerable customers including notices through the post, publicity campaigns and having energy companies proactively contact the remaining customers to ensure they took up the support.49 Following our evidence session, Ofgem wrote to us on 14 June 2023 to notify us that the region with the highest uptake of the energy vouchers as of May 2023, was the East Midlands at a redemption rate of 80% while the lowest, London, had an uptake rate of 68%. The total rate across all regions was 76%.50
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Government response AI summary
The government states it agrees and that the recommendation is implemented, but its response describes ongoing general energy support schemes like the EPG and Warm Home Discount. It does not specifically detail how it has addressed administrative barriers or increased the redemption rate for past …
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HM Treasury
24
Conclusion
Seventy-Fourth Report - Bulb Energy
The energy price cap limits the rates suppliers can charge customers for the standing charge and for each unit of electricity and gas used. The price cap is set by Ofgem at a level that is largely based on the wholesale price of energy.51 We asked Ofgem to provide information …
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The energy price cap limits the rates suppliers can charge customers for the standing charge and for each unit of electricity and gas used. The price cap is set by Ofgem at a level that is largely based on the wholesale price of energy.51 We asked Ofgem to provide information regarding the new price cap and the longer-term expectations for the energy price cap. Ofgem told us that the average household bill was £3,300 a year as of 25 May
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HM Treasury
25
Conclusion
Seventy-Fourth Report - Bulb Energy
Not Addressed
In our June 2023 report on Energy Bills Support, we found that the government planned to replace the Energy Bill Relief Scheme with the Energy Bill Discount Scheme. This would support businesses for 12 months from April 2023 by providing a discount on their energy bills if wholesale prices were …
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In our June 2023 report on Energy Bills Support, we found that the government planned to replace the Energy Bill Relief Scheme with the Energy Bill Discount Scheme. This would support businesses for 12 months from April 2023 by providing a discount on their energy bills if wholesale prices were above a certain threshold. Businesses in certain Energy and Trade-Intensive sectors would receive a higher level of support, based on the government’s standard industrial classification of sectors.53 We therefore asked the Department to update us on whether there had been any assessment of the change 47 Committee of Public Accounts, Regulation of energy suppliers, Twenty-Fifth Report of Session 2022–23, HC 41, 13 November 2022; and Energy Bills Support, Fifty-Eighth Report of Session 2022–23, HC 1074, 16 June 2023 48 Committee of Public Accounts, Energy Bills support, Fifty-Eighth Report of Session 2022–23, HC 1074, 16 June 2023, para 13 49 Qq 11–13 50 Letter from Jonathan Brearley, Chief Executive of Ofgem to Dame Meg Hillier MP, Chair, Public Accounts Committee, 14 June 2023 51 Committee of Public Accounts, Regulation of energy suppliers, Twenty-Fifth Report of Session 2022–23, HC 41, 13 November 2022 52 Qq 2–3; Energy Price Guarantee - GOV.UK (www.gov.uk) ; Default Tariff Cap | Ofgem 53 Committee of Public Accounts, Energy Bills support, Fifty-Eighth Report of Session 2022–23, HC 1074, 16 June 2023, para 20 Bulb Energy 19 in the support being provided and the impact it had. The Department told us that an Energy Bill Discount Scheme was in place for all businesses to provide a base level of support. In April 2023, the Department also announced additional support for businesses classified as Energy and Trade Intensive.54 We again noted that some Energy and Trade Intensive businesses such as laundrettes and the hospitality sector were not included in the classification and so were not eligible to receive additional support. The Department explained that defining an Energy and
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Government response AI summary
The government's response describes the ongoing Energy Bill Discount Scheme (EBDS) and its provisions for non-domestic customers and heat networks. However, it does not address the committee's specific concerns regarding the lack of assessment of the scheme's impact or the exclusion of certain businesses from …
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HM Treasury