Select Committee · Business and Trade Committee

Energy pricing and the future of the Energy Market

Status: Closed Opened: 8 Dec 2021 Closed: 18 Apr 2023 25 recommendations 34 conclusions 1 report

The Business, Energy and Industrial Strategy Committee is holding an inquiry on Energy pricing and the future of the Energy Market. The Committee’s inquiry on the retail energy market follows unprecedented surges in wholesale energy prices since the summer and with a number of firms going out of business, including Bulb, Britain’s seventh-biggest supplier with …

Clear

Reports

1 report
Title HC No. Published Items Response
Third Report - Energy pricing and the future of the Energy … HC 236 26 Jul 2022 59 Responded

Recommendations & Conclusions

6 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...

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 …

Government response. The government states that the matter is for the Government and does not address the committee's concern.
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...

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. 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.
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...

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 …

Government response. The government stated that this is a matter for the government.
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...

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.

Government response. The government states this is a matter for government.
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.

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 …

Government response. 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.
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...

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 …

Government response. The government states that this is a matter for Government, not Ofgem.
Department for Business and Trade

Oral evidence sessions

4 sessions
Date Witnesses
24 May 2022 Daniel Osgood · Department for Business, Energy & Industrial Strategy, Dermot Nolan · Ofgem, Jonathan Brearley · Ofgem, Neil Kenward · Ofgem, Neil Lawrence · Ofgem, Rt Hon Kwasi Kwarteng MP · Department for Business, Energy and Industrial Strategy View ↗
19 Apr 2022 Chris O’ Shea · Centrica, Hayden Wood · Bulb Energy, Jake Brown · Avro Energy, Keith Anderson · ScottishPower, Michael Lewis · E.ON, Simone Rossi · EDF View ↗
22 Mar 2022 Dr Richard Leese · Energy Intensive Users Group, Gillian Cooper · Citizens Advice, Martin Lewis CBE · Money Saving Expert, Nishma Patel · Chemical Industries Association, Paul Wilson · Federation of Small Businesses, Rachel Fletcher · Ofwat, Rachel Fletcher · Octopus Energy, Simon Oscroft · So Energy View ↗
8 Feb 2022 Emma Pinchbeck · Energy UK, Jonathan Brearley · Department for Energy Security and Net Zero, Jonathan Brearley · Ofgem, Jonathan Marshall · The Resolution Foundation, Neil Kenward · Ofgem, Neil Lawrence · Ofgem, Peter Smith · National Energy Action, Stephen Fitzpatrick · OVO Energy View ↗

Correspondence

19 letters
DateDirectionTitle
31 Jan 2023 Note from Ofgem incl. compliance and enforcement strategy, and detail for resou…
21 Sep 2022 To cttee Letter from the Minister for Energy, Clean Growth and Climate Change relating t…
6 Sep 2022 To cttee Letter from the Secretary of State relating to the special administration of Bu…
29 Jul 2022 To cttee Letter from Chair to Rishi Sunak MP on energy bills, 26 July 2022
29 Jul 2022 To cttee Letter from Chair to Liz Truss MP on energy bills, 26 July 2022
12 Jul 2022 To cttee Letter from the Secretary of State relating to the Energy Security Bill, 6 July…
5 Jul 2022 To cttee Letter from the Minister for Energy, Clean Growth and Climate Change relating t…
5 Jul 2022 To cttee Letter from the CEO of Ofgem relating to his appearance before the Committee la…
28 Jun 2022 To cttee Letter from the Secretary of State to Alan Brown MP following up from the sessi…
28 Jun 2022 To cttee Letter from the End Fuel Poverty Coalition to the Chief Executive of OFCOM rela…
14 Jun 2022 To cttee Letter from the Chair to autoswitchers in the energy market, 26 May 2022
24 May 2022 From cttee Letter to the Chancellor relating to the projected increase in the energy price…
24 May 2022 To cttee Letter from the Minister of State for Energy, Clean Growth & Climate Change rel…
24 May 2022 To cttee Letter from the CEO of Centrica following up from his appearance before the Com…
17 May 2022 Correspondence from the Minister for Energy, Clean Growth and Climate Change re…
20 Apr 2022 To cttee Letter from the Minister for Energy, Clean Growth and Climate Change relating t…
19 Apr 2022 To cttee Letter from Lord Callanan on the Warm Home Discount and Energy Company Obligati…
1 Mar 2022 To cttee Letter from Ofgem in follow up to oral evidence on energy pricing and the UK en…
1 Mar 2022 To cttee Letter from Centrica on the energy market and customer credit balances