Select committee: Public Accounts Committee

Recommendation 6

19th Report - Energy Bills Support Published 28 Mar 2025 Addressed to HM Treasury
Recommendation (the committee's words)
The Department has more to do to convince Parliament that it has a robust plan for ensuring security of energy supply to meet increasing demand. The security of energy supply is the highest priority for the Department. Energy demand is set to rise from increasing numbers of electric vehicles and heat pumps, data processing centres, as well as the move to building homes. The stability of the energy grid might be affected by the Department’s plans to move towards cleaner power by 2030, because intermittent renewable energy from wind and solar vary according to the weather conditions. Intermittent energy sources will therefore need to be complemented by flexible and baseload power. Nuclear is an important low–carbon form of baseload generation but there are questions around the life and capacity of the existing plants and the time needed to get small modular nuclear reactors up and running. In January 2025, the National Energy Systems Operator issued a routine notification to energy providers to increase supply, after energy generation briefly fell below a margin set to make sure demand in the days ahead was met. It acknowledged, however, that there had been some speculation about the seriousness of the situation. The Department indicated that supply levels had been lower in the past and the system responded effectively to the potential supply issues. But such interventions are not cost free–this response cost £21 million. DESNZ needs to make sure its public reporting of such incidents meets the highest standards of transparency. recommendation a. The Department should set out in its Treasury Minute response how it will make sure there is capacity in the grid when there is low generation from renewable energy during periods of calm weather, including from wider technologies like nuclear. b. The Department should, in time for next winter, work with the National Energy Systems Operator to explore ways of improving reporting on energy supply issues and how they are handle

From: Public Accounts Committee, 19th Report - Energy Bills Support (HC 511), 28 March 2025

Government response

Latest Treasury Minutes progress report to the Committee of Public Accounts on the Nineteenth Report of Session 2024-26

The government responded to the whole report on 4 June 2026.

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Treasury minutes: Government response to the Committee of Public Accounts on the Nineteenth report from Session 2024-26

Published 18 September 2025.

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Treasury minutes: Government response to the Committee of Public Accounts on the Nineteenth report from Session 2024-25

Published 10 July 2025.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government states that it agrees with the Committee's recommendations on lessons learned, targeted support, vulnerable consumers, electricity bills and energy supply, and disagrees with the recommendation on supplier debt advice data.

  • On lessons from the evaluations, the government agrees and says that "within one month of publication" the department will write to the Committee, with evaluations to be published by Q3 2025 (target date October 2025).
  • On targeting support, the government agrees (target September 2025) and says it is "taking the opportunity to review options for better targeting of future bill support" beyond March 2026, while describing data sharing as "complex matters".
  • On supplier debt advice data, the government disagrees. It proposes that Ofgem, as market regulator, is "better suited than DESNZ" to collect information, and says the review of Ofgem aims to publish its outcomes in autumn 2025.
  • On rebalancing electricity and gas costs, the government agrees (target July 2025) and says it "will set out proposals for rebalancing domestic energy bills in due course". It adds that it is operating in a "difficult fiscal environment".

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