Select committee: Public Accounts Committee
Recommendation 11
Thirty-Seventh Report - Decarbonising home heating
Published 26 May 2024
Addressed to HM Treasury
Public Accounts Committee Decarbonising home heating All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
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
From: Public Accounts Committee, Thirty-Seventh Report - Decarbonising home heating (HC 653), 26 May 2024
Government response
The government responded to the whole report on 11 July 2025 (deadline 26 July 2024).
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 most of the Committee's recommendations on decarbonising home heating, some with target dates still "to be confirmed", and disagrees with one, on gas network decommissioning.
- On heat pump running costs, the government agrees with the recommendation, but implementation is "dependent on further steers from new ministers" and no date is set. It says it "is considering" the best way to bring costs down.
- On installer numbers, the government agrees, with a target of Summer 2025. It says decisions on future training support "will form part of Spending Review 2025 (SR25)", as the Heat Training Grant is funded until April 2025.
- On data, the government agrees to publish quarterly data on retrofit installations using government funding, with a target of Winter 2024. It "cannot commit" to publishing data on new builds or unfunded installations "until a suitable mechanism is found".
- The government disagrees with the recommendation to set out gas network decommissioning arrangements by end-June 2025, saying a full assessment "will require more time". It says it is "currently exploring ways" to facilitate the transition.