Source · Select Committees · Business and Trade Committee
Recommendation 17
17
Acknowledged
Paragraph: 76
We are concerned that the costs of the Supplier of Last Resort process, which has...
Conclusion
We are concerned that the costs of the Supplier of Last Resort process, which has been added to regressive standing charges on electricity bills, has increased affordability challenges for the most vulnerable customers, at the most difficult time. This is wrong. We welcome Ofgem’s recognition of the impact that regressive standing charges have on households and its review of how the Supplier of Last Resort levy is distributed. However, even if these costs are recouped on a usage basis, fuel poor, low income, and vulnerable customers with high energy demand, will still be hit hard.
Government Response Summary
Ofgem is reviewing its approach to the Supplier of Last Resort levy in light of the Energy Price Guarantee and will update the Committee in due course.
Paragraph Reference:
76
Government Response
Acknowledged
HM Government
Acknowledged
The introduction of the Government’s Energy Price Guarantee means there is no longer a risk of prices increasing for consumers in January. Ofgem is reviewing its approach in light of the Energy Price Guarantee and will update the Committee in due course.