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
View on parliament.uk
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
View on parliament.uk
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
View on parliament.uk
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
View on parliament.uk
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
View on parliament.uk
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
View on parliament.uk
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
View on parliament.uk
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
View on parliament.uk
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
8 results
Clear
4 Conclusion Deferred
5th Report - Tackling the energy c…
Warm Home Discount value proves insufficient against rising energy bills for vulnerable consumers.
The value of the Warm Home Discount has increased by only £10 since 2011, while household energy bills have risen by more than £500. The current value of the rebate is wholly insufficient to support vulnerable consumers this winter and … Read more
Government Response
The government highlights that eligible households will receive £150 off their winter energy bills and acknowledges the committee's recommendation to increase the rebate's value. It states that it will explore improvements to the level of support and scheme reach during the next scheme period, following a consultation.
Department for Energy Security and Net Zero
View details
6 Conclusion Deferred
5th Report - Tackling the energy c…
Retarget Warm Home Discount using tiered approach linked to need, usage, and wholesale prices.
From winter 2026–27, the Warm Home Discount should be retargeted using a tiered approach, so that funding is allocated based on household need and energy usage, and the value of the rebate should be linked to wholesale prices. (Recommendation, Paragraph … Read more
Government Response
The government states it will explore improvements to the Warm Home Discount scheme, including the level of support and reach, following a consultation. It notes the committee's recommendation to link the rebate value to wholesale prices and aim for a more targeted scheme, but does not commit to a specific tiered approach or pricing link for winter 2026–27.
Department for Energy Security and Net Zero
View details
9 Recommendation Deferred
5th Report - Tackling the energy c…
Launch consultation on energy social tariff by January 2026 for introduction by winter 2026–27.
We recommend that the Government launches a consultation on an energy social tariff by January 2026 and commits to introducing a social tariff on this basis ahead of winter 2026–27. (Recommendation, Paragraph 35)
Government Response
The government states it is consulting on extending the Warm Home Discount and will consider all options for future bill support, and has sought views on the design of support for fuel-poor households as part of the Fuel Poverty Strategy review. However, it does not commit to launching a specific consultation on an energy social tariff by January 2026 or introducing one by winter 2026–27.
Department for Energy Security and Net Zero
View details
21 Conclusion Deferred
5th Report - Tackling the energy c…
High energy costs exacerbate severe impacts of billing issues, leading to overdue back bills.
Energy bills are generally becoming more accurate, but the high cost of energy means that when billing issues do occur, the impacts are felt far more severely. In an era of smart metering, it is unacceptable that back bills are … Read more
Government Response
The government acknowledges the issue of inaccurate bills and notes Ofgem is undertaking a broad assessment of billing rules, including back billing, with consultations extending to January 2026. The government is also consulting on strengthening the Energy Ombudsman's powers and reviewing the Guaranteed Standards of Performance.
Department for Energy Security and Net Zero
View details
22 Conclusion Deferred
5th Report - Tackling the energy c…
Limit smart meter back-billing period to six months and publish supplier penalty data for breaches.
Ofgem should limit the back billing period to six months for customers with a smart meter. It should also publish annual data on the penalties it gives energy suppliers for breaching its back billing rules. (Recommendation, Paragraph 79)
Government Response
The government states this is a matter for Ofgem, which is currently undertaking a broad assessment of billing rules, including back billing, with consultations due by late January 2026. The government does not commit to the specific six-month limit or data publication but supports better redress mechanisms.
Department for Energy Security and Net Zero
View details
23 Conclusion Deferred
5th Report - Tackling the energy c…
Smart meter rollout remains sluggish, unreliable, and fails to achieve adequate GB coverage.
The smart meter rollout has been sluggish, unreliable and has failed to achieve adequate coverage across Great Britain. Poor levels of reliability mean that many consumers are unable to benefit from more accurate billing, which has increased the occurrence of … Read more
Government Response
The government acknowledges the smart meter rollout issues and has consulted on a new policy framework for 2026-2030, proposing updated smart meter rollout targets by 2030 and more stringent requirements for suppliers to ensure meters are functioning in smart mode within 90 days. Responses to the consultation are currently being analysed.
Department for Energy Security and Net Zero
View details
26 Conclusion Deferred
5th Report - Tackling the energy c…
Reducing Energy Ombudsman escalation time risks increased caseloads, slower resolutions, and higher consumer bills.
We have reservations about the Government’s proposal to reduce the time before a case can be escalated to the Energy Ombudsman from eight to four weeks. This would likely inflate the volume of cases referred to the Ombudsman, which might … Read more
Government Response
The government acknowledges the concerns regarding its proposal to reduce the Energy Ombudsman escalation period and states it is keen to identify exceptions to shortened timescales. It expects to publish an update on its consultation after carefully considering stakeholder views.
Department for Energy Security and Net Zero
View details
31 Recommendation Deferred
5th Report - Tackling the energy c…
Develop and introduce an opt-in energy bills discount scheme for businesses within six months.
We agree with Make UK that the Government should introduce an opt-in energy bills discount scheme for businesses, whereby the Government provides eligible businesses with a unit rate discount, up to a maximum value, when wholesale prices rise above a … Read more
Government Response
The government acknowledges the challenge of high industrial electricity prices and details existing and planned support schemes. However, it defers committing to the recommended opt-in energy bills discount scheme, stating it will engage with Make UK on alternative approaches and issue a call for evidence on the CPPA market.
Department for Energy Security and Net Zero
View details
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