UK Inquiry Tracker

Energy Bills Support

Public Accounts Committee Closed Inquiry

Opened: 18 Jan 2023 Closed: 24 Sep 2023 Parliament page

In September 2022 Government announced the Energy Price Guarantee Scheme and Energy Bill Relief Scheme in response to the energy price crisis. Following on from work done by the National Audit Office on Energy bill support , the Committee will question senior officials at the Department for Business, Energy and … Read more

3 Recommendations

25 Conclusions

1 Report

2 Oral sessions

5 Letters

2 Events

Activity timeline 11 events

24 Sep
2023

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Fifty-eighth report from Session 2022-23

7 Sep
2023

Correspondence

Correspondence from James Bowler, Permanent Secretary, HM Treasury, re Additional information: Recommendation 4a Forty-eighth Report of Ses…

16 Jun
2023

Report published

Fifty-Eighth Report - Energy bills support

17 Apr
2023

Correspondence

Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Energy Security and Net Zero, re Energy Bills Discount Schem…

17 Apr
2023

Correspondence

Correspondence from Rt Hon Grant Shapps MP, Secretary of State, Department for Energy Security and Net Zero, re Contingent Liability Notifi…

28 Mar
2023

Correspondence

Correspondence from James Bowler, Permanent Secretary, HM Treasury, re follow up to question raised at the Public Accounts Committee on Ene…

21 Mar
2023

Correspondence

Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Energy Security and Net Zero, re Energy Bills Support, dated…

27 Feb
2023

Oral evidence

Energy bills support

27 Feb
2023

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Energy bills support

23 Feb
2023

Oral evidence

Energy bills support pre-panel

23 Feb
2023

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Energy bills support pre-panel

Oral evidence sessions 2 sessions

27 Feb 2023

View on parliament.uk

Energy bills support

James Bowler CB · HM Treasury Jeremy Pocklington CB · Ministry of Defence Jonathan Mills · Department for Energy Security and Net Zero Phil Duffy · HM Treasury Sarah Munby · Department for Business, Energy and Industrial Strategy

23 Feb 2023

View on parliament.uk

Energy bills support pre-panel

Andy Manning · Citizens Advice Dhara Vyas · Energy UK Kate Nicholls · UK Hospitality Paul Wilson · Federation of Small Businesses

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Fifty-Eighth Report - Energy bills support	HC 1074	16 Jun 2023	28	Responded

Recommendations & Conclusions

3 results

4 Conclusion Deferred

Fifty-Eighth Report - Energy bills…

Provide analysis of policy impacts on businesses and prevent a financial cliff edge after March 2023.

HM Treasury and the Department do not fully understand the pressures the non-domestic sector will face when the EBRS ends in March 2023, or the potential risk of insolvencies. Many organisations are suffering financially from the aftermath of the pandemic … Read more HM Treasury and the Department do not fully understand the pressures the non-domestic sector will face when the EBRS ends in March 2023, or the potential risk of insolvencies. Many organisations are suffering financially from the aftermath of the pandemic and this has been exacerbated by recent high energy prices. The Department wanted the EBRS to achieve economic benefits, but it risks undermining this if its decision to withdraw support results in increased insolvencies. From April 2023, support for the non-domestic sector will reduce significantly when the Department replaces the EBRS with the Energy Bills Discount Scheme (EBDS) if energy prices remain high. While gas prices have recently fallen significantly from the record-high levels last year, some non-domestic consumers will not feel the benefit if they are trapped in fixed tariffs that were set in late- summer 2022. Additional financial support for energy bills is available for Energy and Trade Intensive Industries, but not for other sectors that can have high energy usage, such as the hospitality sector. HM Treasury expects that other changes from April 2023, such as reduction in business rates, will offset reductions in energy bills support for these sectors. The challenges of the non-domestic sector dealing with rising energy bills has exposed the lack of regulation and visibility that Ofgem and the Department have over the way non-domestic energy market operates. Recommendation 4a: The Treasury should, in parallel to its Treasury Minute response, provide details of its analysis of how the changes to business rates, taxes and energy support will affect businesses across different sectors, and outline how Energy bills support 7 it will ensure that businesses will not face a financial cliff edge after March 2023. It must also monitor and report on the effectiveness of the additional financial support made available to Energy and Trade Intensive Industries in ensuring the resilience of those industries. Rec Show less

Government Response

The government agrees but deflects, stating the department will use findings from Ofgem’s non-domestic market review to inform future actions, with further details to be set out in the summer and plans to be taken forward by Autumn 2023, rather than the Treasury providing an immediate analysis.

HM Treasury

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26 Conclusion Deferred

Fifty-Eighth Report - Energy bills…

Marginal electricity pricing links high gas prices to consumer bills, incurring huge public costs.

The approach to pricing electricity in the UK – known as marginal pricing - means that high wholesale gas prices results in high energy bills for consumers. This is because all electricity generators in the market are paid a fixed … Read more

Government Response

The government agrees with the conclusion and states it aims to publish a second Review of Electricity Market Arrangements (REMA) consultation in Autumn 2023. The REMA programme will consider various options to protect consumers from future price spikes and ensure they benefit from lower cost renewables.

HM Treasury

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28 Conclusion Deferred

Fifty-Eighth Report - Energy bills…

Decoupling electricity and gas prices needs careful reform for long-term consumer benefits.

We asked about whether the vast majority of the additional cost of energy to UK customers was going into increased profits for the energy sector. Energy UK told us that in looking at decoupling electricity and gas, the government should … Read more

Government Response

The government agrees with the committee's observation and plans to publish a second Review of Electricity Market Arrangements (REMA) consultation in Autumn 2023. This programme will consider various options to shield consumers from future price spikes and ensure they benefit from lower cost renewables, with decisions on reforms taking place throughout the programme.

HM Treasury

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Government Response AI assessment · 28 of 3 classified

Accepted 18

Acknowledged 5

Deferred 3

Not Addressed 1

Rejected 1

Total 3 recs + 25 conclusions

Correspondence 5 letters

7 Sep 2023 Correspondence from James Bowler, Permanent Secretary, HM Treasury, re Additional information: Recommendation 4a Forty-eighth Report of Session 2022-23 (Energy Bills Support), dated 14 August 2023

Parliament page

17 Apr 2023 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Energy Security and Net Zero, re Energy Bills Discount Scheme, dated 28 March 2023

Parliament page

17 Apr 2023 Correspondence from Rt Hon Grant Shapps MP, Secretary of State, Department for Energy Security and Net Zero, re Contingent Liability Notification: Energy Bills Discount Scheme, dated 27 March 2023

Parliament page

28 Mar 2023 Correspondence from James Bowler, Permanent Secretary, HM Treasury, re follow up to question raised at the Public Accounts Committee on Energy Bills Support on 27 February 2023, dated 16 March 2023

Parliament page

21 Mar 2023 Correspondence from Jeremy Pocklington CB, Permanent Secretary, Department for Energy Security and Net Zero, re Energy Bills Support, dated 10 March 2023

Parliament page