Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Acknowledged
Delays in alternative fuel support disproportionately impacted Northern Ireland due to higher usage.
Conclusion
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 The Former Permanent Secretary explained that, in recognition that the majority of households in Northern Ireland used alternative fuels, all households in Northern Ireland would receive a payment as part of the Alternative Fuel Payment Scheme. The Federation of Small Businesses similarly told us amongst its membership in Northern Ireland, 14% use alternative fuels, twice the UK average. We therefore asked when all eligible non-domestic customers would receive their payment. HM Treasury told us it was conscious of the importance of the Alternative Fuel 12 C&AG’s Report, paras 2.4 and 2.7 13 Qq 147–148; C&AG’s Report, para 2.12, Figure 7 14 Department for Energy Security and Net Zero and Department for Business Energy & Industrial Strategy, Non- domestic Alternative Fuel Payment Scheme, Great Britain: guidance for electricity suppliers, 6 February 2023 15 C&AG’s report, para 3.7; Department for Energy Security and Net Zero and Department for Business Energy & Industrial Strategy, Apply for energy bill support for non-domestic properties, 20 March 2023 16 C&AG’s Report, para 2.13 12 Energy bills support Payment Scheme in Northern Ireland given the higher proportion of businesses that were off grid, and that payments were being processed but it could not provide a forecast for when it would be fully paid out.17
Government Response Summary
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 with high uptake.
Government Response
Acknowledged
HM Government
Acknowledged
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2023 1.2 The government acted swiftly to provide support to UK households and delivered almost £40 billion of energy bills support through different schemes from October 2022 to March 2023, an unprecedented pace of intervention. This extensive experience in delivering household support and the valuable lessons learned are now underpinning government planning on a range of possible scenarios for next winter. 1.3 The government prioritised quickly reaching as many UK households as possible, which was inherently complex, with greater challenges associated with certain households. People not covered by domestic electricity supply arrangements or off the gas grid (or both) are harder to reach and designing and delivering bespoke application-based solutions for them took time. Additional steps were required, for example to develop and implement application systems, checks to guard against fraud and error and to safeguard public money. Local authorities delivered these schemes in Great Britain, which took time deciding eligibility and handling applications securely. The Department for Energy Security and Net Zero (the department) is seeking to learn lessons on delivery routes and communications so that future schemes could better serve consumers, in particular those who are vulnerable in terms of their personal circumstances or their energy use. 2.5 In Northern Ireland, support was delivered through a single cash payment, due to the high usage of heating oil. Thus, scheme design and the nature of the electricity market meant that voucher redemption has been less of an issue and rates rapidly rose to in excess of 90% shortly after launch. On that basis, additional specific analysis has not been conducted.