Select committee: Business, Innovation, Science and Trade Committee
Recommendation 41
Third Report - Energy pricing and the future of the Energy Market
Published 26 Jul 2022
Paragraph 170
Addressed to Department for Business and Trade
Business, Innovation, Science and Trade Committee Energy pricing and the future of the Energy Market All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We are gravely concerned by the latest forecasts from industry experts that the price cap will increase to £3,244 in October 2022 and £3,363 in January 2023. This will have very serious consequences for households across the country, particularly those that are on low incomes, in fuel poverty, and in vulnerable circumstances. The Government’s May 2022 support package is welcome but will now be eclipsed by the scale and longevity of the price increases, and we are concerned that public funds are still not being targeted adequately enough to those who need it the most. We urge the Government to provide an immediate and better targeted update to its support package that aligns with the expected scale of price increases.
From: Business, Innovation, Science and Trade Committee, Third Report - Energy pricing and the future of the Energy Market (HC 236), paragraph 170, 26 July 2022
Government response
The government responded to the whole report on 13 October 2022 (deadline 26 September 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government's response to the Committee's report mostly points to its Energy Price Guarantee and other support, accepts some changes in process, and declines to review the Special Administration Regime or make smart prepayment meters mandatory.
- On the Special Administration Regime, the Government states it "does not intend to review" it, on the basis that such regimes "have worked well", but says it is "taking on board the lessons learned" from Bulb's administration.
- On a mandatory smart meter rollout for prepayment households, BEIS "continues to favour a consumer centric approach" and considers its "current approach remains appropriate", citing research and practical barriers.
- On the Framework Document, BEIS says it is working with Ofgem to review and update it and "we intend to publish this in due course"; Ofgem separately says it expects to publish it by December 2022.
- On a social tariff and the retail market, the Government says it "will consider how price protection needs to evolve" and will "set out next steps on the future of the retail market in due course".