Recommendations & Conclusions
7 items
12
Conclusion
Third Report - Energy pricing and the f…
Deferred
More significantly, we are concerned by the Government’s apparent lack of understanding of the extensive failings of the regulator and the consequences that this would have on the market in the event of any demand or supply-side shocks. 76 Energy pricing and the future of the energy market While we …
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More significantly, we are concerned by the Government’s apparent lack of understanding of the extensive failings of the regulator and the consequences that this would have on the market in the event of any demand or supply-side shocks. 76 Energy pricing and the future of the energy market While we are not in favour of further interventionism from Government towards Ofgem, we expect BEIS to adhere to the principles set out by the Framework Document.
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Government response AI summary
The government states that the matter is for the Government and does not address the committee's concern.
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Department for Business and Trade
18
Recommendation
Third Report - Energy pricing and the f…
Deferred
We recommend that the Government and Ofgem reform the Supplier of Last Resort process so that the costs are more fairly recouped whether through general taxation or energy bills.
Government response AI summary
The government will undertake a wider review of all elements of the energy price cap as part of discussions with Government on the future of price protection for consumers as the Energy Price Guarantee draws to a close.
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Department for Business and Trade
20
Recommendation
Third Report - Energy pricing and the f…
Deferred
We support the National Audit Office’s recommendation that the Government and Ofgem review and subsequently update the Supplier of Last Resort process to address the problems that arose over the last year, including delays in the transfer of customer information by administrators which prevented the retrieval of credit balances, the …
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We support the National Audit Office’s recommendation that the Government and Ofgem review and subsequently update the Supplier of Last Resort process to address the problems that arose over the last year, including delays in the transfer of customer information by administrators which prevented the retrieval of credit balances, the treatment of customers in debt, and the imbalance of risk between customers and suppliers.
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Government response AI summary
The government states that the recommendation to review and update the Supplier of Last Resort process is a matter for the government.
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Department for Business and Trade
23
Recommendation
Third Report - Energy pricing and the f…
Deferred
We recommend that, given the size of Bulb, the costs of the Special Administration Regime are paid through general taxation, as opposed to recouping the costs from already stretched energy bills. The Government should undertake a review of the Special Administration Regime to consider how to reduce the cost exposure …
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We recommend that, given the size of Bulb, the costs of the Special Administration Regime are paid through general taxation, as opposed to recouping the costs from already stretched energy bills. The Government should undertake a review of the Special Administration Regime to consider how to reduce the cost exposure to the taxpayer in future, and report to this Committee within the next six months on the lessons learned and any required reforms. We suggest, as a minimum, that the Treasury guidance is amended to make it clear that energy suppliers in the Special Administration Regime are presumed to be permitted to hedge. (Paragraph 96) Reforms to the supplier market
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Government response AI summary
The government stated that this is a matter for the government.
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Department for Business and Trade
28
Recommendation
Third Report - Energy pricing and the f…
Deferred
We found consensus from across the sector that the Government should bring forward legislation to increase the frequency of the Renewables Obligation payments. We ask the Government to set out the reasons for repeated delay and failure in this area in its response to this report.
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We found consensus from across the sector that the Government should bring forward legislation to increase the frequency of the Renewables Obligation payments. We ask the Government to set out the reasons for repeated delay and failure in this area in its response to this report.
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Government response AI summary
The government states this is a matter for government.
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Department for Business and Trade
37
Recommendation
Third Report - Energy pricing and the f…
Deferred
We recommend that the Government brings forward regulation of third-party intermediaries. Regulations should ensure that third-party intermediaries encourage customers to switch not just on price, but also on customer service standards and other factors. The regulations should also ensure that third-party intermediaries are transparent about the services offered and the …
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We recommend that the Government brings forward regulation of third-party intermediaries. Regulations should ensure that third-party intermediaries encourage customers to switch not just on price, but also on customer service standards and other factors. The regulations should also ensure that third-party intermediaries are transparent about the services offered and the suppliers that they work with, provide an explanation of remuneration and access to advice and redress for customers. The regulations need to be future proofed for the significant role that third-party intermediaries are expected to play in the transition to net zero.
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Government response AI summary
The government is considering responses to a call for evidence on third-party intermediaries and assessing the impact of recent market events, with next steps on the future of the retail market to be set out in due course.
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Department for Business and Trade
49
Recommendation
Third Report - Energy pricing and the f…
Deferred
It is unacceptable that prepayment customers, who are often moved to a prepayment meter because they cannot afford their energy bill, pay more for their energy than direct debit customers. We recommend that Ofgem addresses this differential, for example by reinstating the Safeguard Tariff for prepayment customers, to ensure that …
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It is unacceptable that prepayment customers, who are often moved to a prepayment meter because they cannot afford their energy bill, pay more for their energy than direct debit customers. We recommend that Ofgem addresses this differential, for example by reinstating the Safeguard Tariff for prepayment customers, to ensure that they pay no more than direct debit customers for their energy. This would be a temporary measure while the Government consults on the operation of a social tariff.
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Government response AI summary
The government states that this is a matter for Government, not Ofgem.
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Department for Business and Trade