Select committee: Business, Innovation, Science and Trade Committee
Recommendation 44
Third Report - Energy pricing and the future of the Energy Market
Published 26 Jul 2022
Paragraph 181
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)
While the Government committed to publishing a Fairness and Affordability call for evidence over a year ago, this is yet to materialise. This is a vital piece of work which will need to address how to allocate energy policy costs in a way that incentivises cost-effective decarbonisation while avoiding harmful impacts on vulnerable groups, particularly in the context of continuing rises in wholesale gas prices. It is also an important opportunity to review the impact that standing charges have on vulnerable customers, particularly those using prepayment meters.
From: Business, Innovation, Science and Trade Committee, Third Report - Energy pricing and the future of the Energy Market (HC 236), paragraph 181, 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".