Recommendation 21

HM Government Acknowledged

consumers to make green choices, such as switching from gas boilers to electric heat pumps. We are committed to keeping costs fair and affordable for industry and consumers, and working to identify how costs can be allocated in a way which incentivises consumers to make green choices. As set out in the Heat and Buildings Strategy, we want to reduce electricity costs and are looking at options to shift or rebalance energy levies and obligations (such as the Renewables Obligation, Feed-in-Tariffs and Energy Company Obligation) away from electricity over this decade. This will include looking at options to expand carbon pricing and remove costs from electricity bills. As set out in the Energy Security Strategy we will publish our proposals on how to do so in 2022, considering overall system impacts and limiting the impact on bills, particularly for low-income consumers. Financial support is currently available to low income and vulnerable households through the Warm Home Discount, Winter Fuel Payment and Cold Weather Payment. We continue to review additional costs and how best to support fuel poor households during the transition to Net Zero. In addition to these targeted schemes, the Chancellor recently announced a £9.1 billion package of support to help over 28 million households with the costs of rising energy bills. To help spread the cost of this year’s energy price shock over time, from October 2022 the Energy Bills Support Scheme will reduce all domestic electricity customers’ bills by £200. This will subsequently be recouped through energy bills over five years from 2023/24.