Source · Select Committees · Business and Trade Committee
Recommendation 19
19
Not Addressed
Paragraph: 85
The Supplier of Last Resort process ensured that customers of failed energy companies maintained their...
Conclusion
The Supplier of Last Resort process ensured that customers of failed energy companies maintained their supply. However, customers carried the risk of failure, while suppliers exited facing minimal costs, and in some cases, even made a financial return. Suppliers of last resort raised pressing concerns about administrators of Energy pricing and the future of the energy market 77 failed energy companies not acting in the best interest of customers. The delay in sharing customer information to suppliers of last resort, which led to inaccurate bills and interruptions in retrieving credit balances, is unreasonable.
Government Response Summary
The response discusses social tariffs and Ofgem's plans to refine distributional analysis, but doesn't address the concerns about the Supplier of Last Resort process, administrators acting in the best interest of customers, or the delay in sharing customer information.
Paragraph Reference:
85
Government Response
Not Addressed
HM Government
Not Addressed
Social tariffs were introduced in 2008 as part of a voluntary agreement between government and the six largest suppliers. There were issues around the consistency of support as suppliers were able to set their own eligibility criteria, resulting in a lottery of access and large variations in benefit. Other consumers, including the most disengaged, cross-subsidised social tariff recipients. This led to social tariffs being replaced by the current mandated Warm Home Discount scheme in 2011. consumers, eligibility will be a key design question that will need to be considered as part of any work on social tariffs or alternatives. In the near term, Ofgem is planning to refine the distributional analysis. This will help to further identify the impacts of our decisions on different groups of consumers and better enable the support of customers who are in vulnerable situations. Ofgem will also continue working with Government on how best to identify and protect the most vulnerable consumers this winter and into the future.