Select committee: Business, Innovation, Science and Trade Committee
Recommendation 59
Third Report - Energy pricing and the future of the Energy Market
Published 26 Jul 2022
Paragraph 221
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)
With the worst yet to come, the consequences of the energy price crisis and wider cost-of-living crisis on customers, and energy suppliers, is still to be seen. The extent of these challenges cannot be dealt with by BEIS or Ofgem alone. The Prime Minister himself stated the Government’s response to this pressing situation needs to be treated with the same level of seriousness as the Covid-19 pandemic. The responsibility to deal with this crisis spans across multiple Government departments and the Government needs to galvanise the resources and expertise at its disposal. This will require ministerial leadership and a cross-departmental taskforce. We recommend that the Government urgently sets up a cross-departmental taskforce, like the Brexit taskforce, to respond to the energy price crisis and wider cost-of- living. This taskforce should meet regularly to support Ofgem and other arms of the Government to do the work necessary to provide the best possible outcomes for consumers and stabilise the energy supply market.
From: Business, Innovation, Science and Trade Committee, Third Report - Energy pricing and the future of the Energy Market (HC 236), paragraph 221, 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".