Today (26th July 2022) the BEIS Select Committee has launched its final report, concluding its inquiry into Energy pricing and the future of the energy market.
National Energy Action understands that the report will, among other things, recommend that:
- The UK Government updates the support package to align with more recent expectations on energy prices in October.
- The UK Government considers the introduction of a social tariff for vulnerable customers in the energy market
- Ofgem re-introduces the safeguard tariff in the interim, reducing the cost of energy for prepayment meter customers.
- The UK Government introduces a scheme to help vulnerable customers accelerate the repayment of debt that has accrued as a result of the energy pricing crisis.
- Standing charges be reduced, initially through removing the costs of failed suppliers from the standing charge, then more broadly through a Government review later on in the year.
- The UK Government replace the Green Homes Grant scheme with new money.
Matt Copeland, Head of Policy and Public Affairs at fuel poverty charity National Energy Action says:
“Energy prices continue to spiral, and vulnerable households in the energy market are being hardest hit. It is vital that the plans from the UK Government and Ofgem are scrutinised by Parliament, and they act on this credible set of recommendations to help the poorest households through the energy crisis, this winter and beyond.
“The next Prime Minister will need to implement these recommendations urgently, topping up the current energy support, announced in May, to offset the October increases. We also agree with the cross-party recommendation to introduce a social tariff to give fuel-poor households deep, enduring protection against persistent high energy prices, and putting in place a new scheme to help households that have accrued a mountain of debt during the crisis. The regulator must also not duck its role in reducing the growing burden of standing charges that are hitting struggling households the most. Overall, it is critical to ensure that pre-payment meter customers do not pay more for their energy and are not punished further as a result of finding their bills already unaffordable.
Finally, the winner of the leadership contest must ensure that reducing the wasted energy in our homes becomes a much more prominent part of the policy response. Improving energy efficiency should be top of their agenda as it will help ease future price spikes now and in the future.”
- The BEIS Select Committee’s report on its inquiry into Energy pricing and the future of the energy market can be found here https://committees.parliament.uk/committee/365/business-energy-and-industrial-strategy-committee/publications/