Recommendation 11

DESNZ plans to work on rebalancing the costs of electricity and gas, but it said that doing so is difficult because of large structural issues in the sector. It had aimed to rebalance costs to some extent by moving levies from electricity to gas bills, but its plans to do so have been delayed by nearly two years. It explained that it was looking at options that are fair and affordable for consumers and taxpayers, and will set out its approach during 2024.22 In the meantime, one energy company, Centrica, noted that it had created tariffs 14 DHH0014, Written evidence submitted by The MCS Foundation, 29 April 2024 15 DHH0033, Written evidence submitted by Energy UK, 29 April 2024 16 Qq 9, 43; C&AG’s Report, para 17 17 Qq 3, 30 18 DHH0033; DHH0045, Written evidence submitted by Fuel Poverty Action, 29 April 2024; DHH0046; DHH0050, Written evidence submitted by Octopus Energy, 29 April 2024 19 DHH0008, Written evidence submitted by The Heat Pump Association and The Heat Pump Federation, 29 April 2024; DHH0014, Written evidence submitted by The MCS Foundation, 29 April 2024 20 DHH0011, Written evidence submitted by EDF Energy, 29 April 2024; DHH0014, Written evidence submitted by The MCS Foundation, 29 April 2024 21 Q 30 22 Qq 30; C&AG’s Report, paras 16, 3.10 12 Decarbonising home heating that encourage households to move their electricity use away from peak times. Centrica added that the wider issue, however, must be tackled without penalising those households with gas boilers who are unable to move to low-carbon heating.23 Complexity and confusion