Source · Select Committees · Business and Trade Committee
Recommendation 33
33
Accepted
Paragraph: 141
The Energy Bill [HL], which was introduced to Parliament on 6 July 2022, included provisions...
Conclusion
The Energy Bill [HL], which was introduced to Parliament on 6 July 2022, included provisions to extend the energy price beyond 2023, but it will not change how the price cap functions. Neither the Government nor Ofgem has undertaken an evaluation of Energy pricing and the future of the energy market 79 its costs and benefits, nor considered alternative forms of price protection, including a social tariff which could provide deeper price protection for vulnerable, fuel poor and low income households.
Government Response Summary
The government is introducing the Energy Price Guarantee to protect households from the spiralling costs of energy and will consider how price protection needs to evolve as the energy system changes.
Paragraph Reference:
141
Government Response
Accepted
HM Government
Accepted
The Government is introducing the Energy Price Guarantee to protect households from the spiralling costs of energy. The Guarantee will ensure that a typical household in Great Britain pays an average £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022. Equivalent support will be provided in Northern Ireland. The Energy Price Guarantee is on top of the existing policies government has in place to protect vulnerable consumers and ensure those who need it, receive additional support. Government will consider how price protection needs to evolve as the energy system changes to ensure that households benefit from new technologies, tariffs, and business models. Government will set out next steps on the future of the retail market in due course.