The cost of energy

Energy Security and Net Zero Committee Open Inquiry
Opened: 18 Feb 2025 Parliament page
In October last year the Committee published its i nterim report on the high costs of energy in the UK making recommendations on how costs fall on consumers in the retail side of the sector. In the second part of this inquiry, the Committee is looking at where costs arise … Read more
9 Recommendations
26 Conclusions
1 Report
8 Oral sessions
8 Events
Activity timeline 19 events
19 Mar
2026
Report published
17 Mar
2026
Oral evidence
17 Mar
2026
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
4 Mar
2026
Oral evidence
4 Mar
2026
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
21 Jan
2026
Report published
21 Jan
2026
Oral evidence
21 Jan
2026
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
10 Dec
2025
Oral evidence
10 Dec
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
29 Oct
2025
Report published
15 Oct
2025
Oral evidence
Oral evidence sessions 8 sessions
17 Mar 2026
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Oral evidence
Jonathan Mills CB · Department for Energy Security and Net Zero Michael Shanks MP · Department for Energy Security and Net Zero
4 Mar 2026
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Oral evidence
Akshay Kaul · Ofgem Claire Dykta · National Grid Electricity System Operator (ESO) Fintan Slye · National Energy System Operator (NESO) Jonathan Brearley · Department for Energy Security and Net Zero Jonathan Brearley · Ofgem
21 Jan 2026
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Oral evidence
Dr Alastair Martin · Flexitricity Dr Waqquas Bukhsh · University of Strathclyde Katrina Young · Energy Systems Catapult Lawrence Slade · Energy Networks Association (ENA) Professor Jacopo Torriti · University of Reading Sarah Honan · The Association for Decentralised Energy
10 Dec 2025
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Oral evidence
Adam Bell · Stonehaven Ana Musat · RenewableUK Professor Michael Grubb · UCL Susie Elks · E3G Tom Edwards · Cornwall Insight Tom Glover · RWE
15 Oct 2025
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Oral evidence
Andrew Ward · Scottish Power Customer Business Chris Norbury · E.ON UK Chris O'Shea · Centrica David Buttress · OVO Energy Rachel Fletcher · Octopus Energy Simone Rossi · EDF
9 Jul 2025
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Oral evidence
Arjan Geveke · Energy Intensive Users Group Beth Barker · Aldersgate Group David Mitchell · Chemical Industries Association David Wigham · Admiral Taverns; and representing British Beer and Pub Association Paul Wilson · Federation of Small Business Verity Davidge · Make UK
25 Jun 2025
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Oral evidence
Alex Belsham-Harris · Citizens Advice Beth Martin · Ofgem Dr Raj Roy · Centrica Ed Dodman · Ombudsman Services Jonathan Brearley · Ofgem Jonathan Lenton · Energy Ombudsman Katie Watts · MoneySavingExpert
4 Jun 2025
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Oral evidence
Angus McCarey · Uswitch Caroline Abrahams · Age UK Dhara Vyas · Energy UK Maria Booker · Fair By Design Matt Copeland · National Energy Action Merlin Hyman · Regen
Title HC No. Published Items Response
5th Report - Tackling the energy cost crisis HC 736 29 Oct 2025 35 Responded
Recommendations & Conclusions
5 results
Clear
5 Conclusion Accepted in Part
5th Report - Tackling the energy c…
Broaden Warm Home Discount eligibility to include all fuel-poor and vulnerable households.
The eligibility criteria for the Warm Home Discount should be broadened to include all households in fuel poverty and those meeting vulnerability criteria, such as those with disabilities or long-term health conditions. (Recommendation, Paragraph 28)
Government Response
The government states it expanded the Warm Home Discount to cover an additional 2.7 million households, reaching 45% of fuel-poor households. It notes the committee's recommendation for further expansion and commits to exploring options for improving the scheme's reach and providing additional support to fuel-poor and excluded low-income households, following a consultation response.
Department for Energy Security and Net Zero
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18 Conclusion Accepted in Part
5th Report - Tackling the energy c…
Ofgem's standing charge proposals risk unfairness and consumer detriment without safeguards.
We welcome Ofgem’s ambition to reassess how costs are allocated across consumer energy bills, but we are unconvinced that its proposals for a mandatory zero or low standing charge tariff option will go far enough to address the inherent unfairness … Read more
Government Response
The government agrees with offering choice and lower standing charges, citing a published consultation to move Warm Home Discount costs to the unit rate, which would reduce standing charges by £39 for typical households from April. It also mentions Ofgem's review of disconnections and a future Call for Evidence in 2026 on gas network transition, but doesn't directly address the committee's specific concerns about the sufficiency or risks of Ofgem's mandatory zero/low standing charge tariff proposals.
Department for Energy Security and Net Zero
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24 Recommendation Accepted in Part
5th Report - Tackling the energy c…
Set ambitious smart meter targets, including interim rollout and reliability for existing operational devices.
The Government must set ambitious new targets for smart meters by the end of this year, including interim rollout targets to 2030 and strict new targets for suppliers on the reliability of existing smart meters and a requirement that smart … Read more
Government Response
The government has opened a consultation on a new policy framework for 2026-2030, proposing that suppliers complete the smart meter rollout by 2030 and meet more stringent requirements to ensure meters are operational within 90 days. Responses to this consultation are currently being analysed, indicating a future commitment to new targets.
Department for Energy Security and Net Zero
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27 Recommendation Accepted in Part
5th Report - Tackling the energy c…
Place Energy Ombudsman on statutory footing, publish supplier compliance, and ban debt collection during investigations.
The Government must place the Energy Ombudsman on a statutory footing and data should be published on the compliance of each supplier with its rulings, including whether these are delivered on time. The Government must also ban energy suppliers from … Read more
Government Response
The government is proposing to explicitly designate the Energy Ombudsman through legislation to strengthen its position and create a legal obligation for suppliers to implement rulings. However, it does not commit to publishing supplier compliance data or a direct ban on debt collection during investigations, noting that Ofgem already has rules for fair and proportionate debt recovery.
Department for Energy Security and Net Zero
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30 Conclusion Accepted in Part
5th Report - Tackling the energy c…
Industrial energy cost support insufficient and too slow, needing urgent extension to SMEs.
We welcome support to reduce industrial energy costs in the Industrial Strategy but this does not go far or fast enough. Support for just a limited number of businesses underestimates the scale of the challenge and we are concerned that … Read more
Government Response
The government acknowledges the challenges and states that the new British Industrial Competitiveness Scheme (BICS) will reduce electricity costs for up to 7,000 businesses and be available to eligible businesses regardless of size, addressing the call for SME support. It also highlights other support schemes, reiterating its targeted approach.
Department for Energy Security and Net Zero
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Government Response AI assessment · 35 of 9 classified
Accepted 5
Accepted in Part 5
Acknowledged 8
Deferred 8
Not Addressed 7
Rejected 2
Total 9 recs + 26 conclusions