5
Provide update on household energy affordability plans for winter 2023-24 and future scheme reforms.
Conclusion
The Department does not yet know how its plans for winter 2023–24, or once support ends in April 2024, will impact households, or how it will ensure the energy retail market provides a fair deal for consumers. At the time of our evidence session, the Department’s plans for winter 2023–24 meant household energy bills are expected to increase by £775 in 2023–24 if energy prices remain high. The government has committed to consulting on amending the EPG as soon as is feasible after April 2023 so that those who use very large volumes of energy have their support capped, whilst ensuring most households can continue to benefit. At the time of the NAO report, when the scheme comes to an end in April 2024, the Department did not expect the average annual bill to be much above £3,000, meaning that withdrawing the EPG would not have a sudden significant impact on consumer bills. However, wholesale gas prices are volatile and outside of the Department’s control. The government also announced it will develop a new approach to consumer protection in energy through a wider retail market reform, including options such as social tariffs. It has not yet published further information on what this would look like and how it will bring back supplier competition in the market. Recommendation 5: The Department should write to the committee within 6 months to provide an update on: • its plans to ensure energy affordability in winter 2023–24; and • its progress with future plans for the domestic scheme, such as capping support to those that use very large volumes of energy and introducing discounts on bills for households on benefits.
Government Response
A response document is linked to this report, dated 24 September 2023. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Inquiry
Energy Bills Support
Report
Fifty-Eighth Report - Energy bills support
16 Jun 2023
HC 1074
Addressee Bodies
HM Treasury
Timeline
Recommendation age
3.2 yrs
Report published
16 Jun 2023