Energy pricing and the future of the Energy Market

Business and Trade Committee Closed Inquiry
Opened: 8 Dec 2021 Closed: 18 Apr 2023 Parliament page
The Business, Energy and Industrial Strategy Committee is holding an inquiry on Energy pricing and the future of the Energy Market. The Committee’s inquiry on the retail energy market follows unprecedented surges in wholesale energy prices since the summer and with a number of firms going out of business, including … Read more
32 Recommendations
27 Conclusions
1 Report
4 Oral sessions
19 Letters
4 Events
Activity timeline 29 events
31 Jan
2023
Correspondence
13 Oct
2022
Report published
21 Sep
2022
Correspondence
6 Sep
2022
Correspondence
29 Jul
2022
Correspondence
29 Jul
2022
Correspondence
26 Jul
2022
Report published
12 Jul
2022
Correspondence
5 Jul
2022
Correspondence
5 Jul
2022
Correspondence
28 Jun
2022
Correspondence
28 Jun
2022
Correspondence
Oral evidence sessions 4 sessions
24 May 2022
View on parliament.uk
Daniel Osgood · Department for Business, Energy & Industrial Strategy Dermot Nolan · Ofgem Jonathan Brearley · Ofgem Neil Kenward · Ofgem Neil Lawrence · Ofgem Rt Hon Kwasi Kwarteng MP · Department for Business, Energy and Industrial Strategy
19 Apr 2022
View on parliament.uk
Chris O’ Shea · Centrica Hayden Wood · Bulb Energy Jake Brown · Avro Energy Keith Anderson · ScottishPower Michael Lewis · E.ON Simone Rossi · EDF
22 Mar 2022
View on parliament.uk
Energy pricing and the future of the energy market and the impact of energy prices industry
Dr Richard Leese · Energy Intensive Users Group Gillian Cooper · Citizens Advice Martin Lewis CBE · Money Saving Expert Nishma Patel · Chemical Industries Association Paul Wilson · Federation of Small Businesses Rachel Fletcher · Ofwat Rachel Fletcher · Octopus Energy Simon Oscroft · So Energy
8 Feb 2022
View on parliament.uk
Oral evidence session
Emma Pinchbeck · Energy UK Jonathan Brearley · Ofgem Jonathan Brearley · Department for Energy Security and Net Zero Jonathan Marshall · The Resolution Foundation Neil Kenward · Ofgem Neil Lawrence · Ofgem Peter Smith · National Energy Action Stephen Fitzpatrick · OVO Energy
Title HC No. Published Items Response
Third Report - Energy pricing and the future of the Energy Market HC 236 26 Jul 2022 59 Responded
Recommendations & Conclusions
59 results
1 Conclusion Acknowledged
Third Report - Energy pricing and …
Until June 2019, Ofgem granted energy suppliers a licence to operate in the market without...
Until June 2019, Ofgem granted energy suppliers a licence to operate in the market without ensuring they had access to sufficient levels of working capital, an acceptable business plan, or were run by individuals with relevant expertise. Ofgem’s delay to … Read more
Government Response
The Department for Business, Energy and Industrial Strategy has launched a cross-Government Affordability Sprint to share data and information on affordability, and Ofgem will support the new Prime Minister and Cabinet.
Department for Business and Trade
View details
2 Conclusion Accepted
Third Report - Energy pricing and …
The lack of ongoing requirements for suppliers operating in the market allowed thinly capitalised companies...
The lack of ongoing requirements for suppliers operating in the market allowed thinly capitalised companies to rely on customers’ money to fuel business growth and operate with either no hedging or inadequate hedging against future energy prices. These companies took … Read more
Government Response
Ofgem accepts the recommendations of the Oxera report in full, including the development of consumer interest and competition frameworks, and will seek further views from stakeholders.
Department for Business and Trade
View details
3 Conclusion Acknowledged
Third Report - Energy pricing and …
Oxera’s review of Ofgem’s performance to regulate the retail market raised serious and fundamental questions...
Oxera’s review of Ofgem’s performance to regulate the retail market raised serious and fundamental questions about the regulator’s ability to carry out its primary duties. We agree with its findings that Ofgem has no proper frameworks for defining and measuring … Read more
Government Response
Ofgem understands the Committee is eager to see the detail of its compliance and enforcement activity and actions and proposes to share this in due course, with a broader package of information requested in the Committee’s report, the annual report and Ofgem accounts in July following each financial year.
Department for Business and Trade
View details
4 Recommendation Not Addressed
Third Report - Energy pricing and …
We recommend that Ofgem implements the recommendations of the Oxera report in full to ensure...
We recommend that Ofgem implements the recommendations of the Oxera report in full to ensure that it has the proper frameworks for defining consumer interests and competition. We call on Ofgem to carry out rigorous quantitative impact analysis to underpin … Read more
Government Response
The response outlines the contents of a report to the Committee, not the specific actions recommended regarding Ofgem's frameworks, impact analysis, governance, and Board effectiveness.
Department for Business and Trade
View details
5 Conclusion Not Addressed
Third Report - Energy pricing and …
Even when matters of poor practice and potential breaches of licence conditions were directly reported...
Even when matters of poor practice and potential breaches of licence conditions were directly reported to Ofgem, the regulator repeatedly failed to use its enforcement powers in any meaningful way. This was at the expense of customers who Ofgem is … Read more
Government Response
The response only indicates that the government is addressing progress in respect of such companies, but does not address the core criticism of Ofgem's lack of enforcement.
Department for Business and Trade
View details
6 Recommendation Acknowledged
Third Report - Energy pricing and …
We call on Ofgem to make full and proper use of its enforcement and compliance...
We call on Ofgem to make full and proper use of its enforcement and compliance powers to clamp down on rule breaking by suppliers, particularly relating to customer service standards. Ofgem should work with the Government to ensure it has … Read more
Government Response
Ofgem has begun to consider the new powers that would be of benefit to consumers, including enforcement for unfit directors, the ability to appoint a third party to operate an energy supplier, the power to act against the parent company of a licensee, and making it quicker and easier to revoke a licence.
Department for Business and Trade
View details
7 Recommendation Acknowledged
Third Report - Energy pricing and …
Whilst we have been reassured by Jonathan Brearley that changes are being made to the...
Whilst we have been reassured by Jonathan Brearley that changes are being made to the governance, leadership, and performance of Ofgem we remain deeply concerned that such negligent behaviour was able to take place for so long. If Dermot Nolan … Read more
Government Response
Ofgem and the Department have begun discussions to refresh the framework document and expect to publish it by December 2022.
Department for Business and Trade
View details
8 Conclusion Acknowledged
Third Report - Energy pricing and …
Avro Energy improperly used customers’ money, including siphoning off customers’ cash to different businesses in...
Avro Energy improperly used customers’ money, including siphoning off customers’ cash to different businesses in the directors’ names, issuing loans to the directors, and paying poorly performing executives an unreasonably high salary. We were disappointed by the admission from Ofgem’s … Read more
Government Response
Ofgem acknowledges the committee's concerns and notes that it has provided views to the Government regarding the Strategy and Policy Statement.
Department for Business and Trade
View details
9 Recommendation Not Addressed
Third Report - Energy pricing and …
We call on the administrators of Avro Energy to request that the Insolvency Service consider...
We call on the administrators of Avro Energy to request that the Insolvency Service consider bringing action against the former Directors of Avro Energy specifically and to update us on what, if any action, can be taken to recover customers’ money.
Government Response
Ofgem will develop an annual report for the Committee that includes measures to ensure effective accountability and transparency, key decisions, performance issues and policy concerns, a breakdown of the allocation of Ofgem resources, and a summary of the compliance and enforcement action taken in response to rule breaking by energy suppliers.
Department for Business and Trade
View details
10 Recommendation Not Addressed
Third Report - Energy pricing and …
We further call on the Government to review whether regulators such as Ofgem should be...
We further call on the Government to review whether regulators such as Ofgem should be given new powers to bring enforcement action for unfit conduct by energy company directors given the very limited scope for The Insolvency Service to do … Read more
Government Response
Response discusses why they are not replacing standing charges with a volumetric alternative based on usage.
Department for Business and Trade
View details
11 Conclusion Accepted
Third Report - Energy pricing and …
We expect Ofgem, as the independent regulator, to clearly outline to Ministers and Parliament the...
We expect Ofgem, as the independent regulator, to clearly outline to Ministers and Parliament the risks and consequences associated with the delivery of Government objectives. We do not believe that Ofgem properly raised the risks to Government, or Parliament, that … Read more
Government Response
Ofgem has worked with Government to introduce the Public Interest Business Protection Tax and is committed to working with suppliers and Insolvency Practitioners to ensure current rules and Consumer Protection regulations are adhered to.
Department for Business and Trade
View details
12 Conclusion Deferred
Third Report - Energy pricing and …
More significantly, we are concerned by the Government’s apparent lack of understanding of the extensive...
More significantly, we are concerned by the Government’s apparent lack of understanding of the extensive failings of the regulator and the consequences that this would have on the market in the event of any demand or supply-side shocks. 76 Energy … Read more
Government Response
The government states that the matter is for the Government and does not address the committee's concern.
Department for Business and Trade
View details
13 Conclusion Not Addressed
Third Report - Energy pricing and …
We would encourage more robust lines of communication and a clear delineation of responsibilities between...
We would encourage more robust lines of communication and a clear delineation of responsibilities between Ofgem and BEIS to ensure transparency and effective scrutiny.
Government Response
The government states that this is a matter for Government.
Department for Business and Trade
View details
14 Recommendation Accepted
Third Report - Energy pricing and …
We require Ofgem to start regularly and proactively reporting to the Department on how it...
We require Ofgem to start regularly and proactively reporting to the Department on how it is meeting its duties and to inform Ministers of any risks associated with the delivery of Government strategy. We ask the Department and Ofgem to … Read more
Government Response
Ofgem launched its supplier stress testing regime earlier in 2022 and is analysing the responses to the second iteration ahead of winter. Ofgem plans to develop an adaptive framework to ensure the right level of resilience, while minimising unnecessary burden and barriers to innovation. build on this to deliver a new capital adequacy regime.
Department for Business and Trade
View details
15 Recommendation Acknowledged
Third Report - Energy pricing and …
We recommend that the Government urgently publishes its long-delayed Strategy and Policy Statement for Ofgem...
We recommend that the Government urgently publishes its long-delayed Strategy and Policy Statement for Ofgem to guide the regulator on how to manage the political and distributional trade-offs intrinsic to its responsibilities and clarify the split of responsibilities between Ofgem … Read more
Government Response
Ofgem has been analysing responses to its policy consultation on Strengthening Financial customer credit balances and stress-testing and will share its revised analysis with the Committee.
Department for Business and Trade
View details
16 Conclusion Accepted
Third Report - Energy pricing and …
We recognise that this Committee has an important role in the scrutiny of Ofgem’s activity.
We recognise that this Committee has an important role in the scrutiny of Ofgem’s activity. We expect the regulator to be carrying out its core functions and delivering on its duties. It is neither feasible nor appropriate for Parliament to … Read more
Government Response
The government describes the 2021 consultation between Ofgem and BEIS on supplier payment default under the Renewables Obligation, and indicates that Ofgem published a consultation in June this year which included measures to protect money collected to meet Renewables Obligation payments.
Department for Business and Trade
View details
17 Conclusion Acknowledged
Third Report - Energy pricing and …
We are concerned that the costs of the Supplier of Last Resort process, which has...
We are concerned that the costs of the Supplier of Last Resort process, which has been added to regressive standing charges on electricity bills, has increased affordability challenges for the most vulnerable customers, at the most difficult time. This is … Read more
Government Response
Ofgem is reviewing its approach to the Supplier of Last Resort levy in light of the Energy Price Guarantee and will update the Committee in due course.
Department for Business and Trade
View details
18 Recommendation Deferred
Third Report - Energy pricing and …
We recommend that the Government and Ofgem reform the Supplier of Last Resort process so...
We recommend that the Government and Ofgem reform the Supplier of Last Resort process so that the costs are more fairly recouped whether through general taxation or energy bills.
Government Response
The government will undertake a wider review of all elements of the energy price cap as part of discussions with Government on the future of price protection for consumers as the Energy Price Guarantee draws to a close.
Department for Business and Trade
View details
19 Conclusion Not Addressed
Third Report - Energy pricing and …
The Supplier of Last Resort process ensured that customers of failed energy companies maintained their...
The Supplier of Last Resort process ensured that customers of failed energy companies maintained their supply. However, customers carried the risk of failure, while suppliers exited facing minimal costs, and in some cases, even made a financial return. Suppliers of … Read more
Government Response
The response discusses social tariffs and Ofgem's plans to refine distributional analysis, but doesn't address the concerns about the Supplier of Last Resort process, administrators acting in the best interest of customers, or the delay in sharing customer information.
Department for Business and Trade
View details
20 Recommendation Deferred
Third Report - Energy pricing and …
We support the National Audit Office’s recommendation that the Government and Ofgem review and subsequently...
We support the National Audit Office’s recommendation that the Government and Ofgem review and subsequently update the Supplier of Last Resort process to address the problems that arose over the last year, including delays in the transfer of customer information … Read more
Government Response
The government states that the recommendation to review and update the Supplier of Last Resort process is a matter for the government.
Department for Business and Trade
View details
21 Conclusion Acknowledged
Third Report - Energy pricing and …
The Special Administration Regime has been used for the first time to deal with the...
The Special Administration Regime has been used for the first time to deal with the failure of Bulb Energy, leaving taxpayers exposed to billions of pounds worth of costs. The decision not to implement a hedging strategy may have led … Read more
Government Response
Ofgem is working with the Department to ensure the development of a clear and coordinated roadmap for the future energy retail market to support the achievement of an effective transition to net zero in line with the targets set by Government.
Department for Business and Trade
View details
22 Recommendation Not Addressed
Third Report - Energy pricing and …
We recommend that the Government implements a hedging strategy at Bulb Energy.
We recommend that the Government implements a hedging strategy at Bulb Energy. In the meantime, we ask that the Government provides us with detailed analysis of the cost implications for BEIS and the taxpayer of its decision not to purchase … Read more
Government Response
The government indicates industry is making progress on implementation of market-wide half-hourly settlement, which Ofgem believes will be an important enabler of a more flexible, low carbon and low-cost energy system. This is not relevant to the recommendation about Bulb Energy.
Department for Business and Trade
View details
23 Recommendation Deferred
Third Report - Energy pricing and …
We recommend that, given the size of Bulb, the costs of the Special Administration Regime...
We recommend that, given the size of Bulb, the costs of the Special Administration Regime are paid through general taxation, as opposed to recouping the costs from already stretched energy bills. The Government should undertake a review of the Special … Read more
Government Response
The government stated that this is a matter for the government.
Department for Business and Trade
View details
24 Conclusion Acknowledged
Third Report - Energy pricing and …
We support Ofgem’s objective to ensure energy suppliers are well-capitalised and prudently run.
We support Ofgem’s objective to ensure energy suppliers are well-capitalised and prudently run. If its plans to introduce a capital adequacy regime and improve its monitoring of suppliers’ approach to risk management are executed effectively, these measures could reduce the … Read more
Government Response
Ofgem continues to work with suppliers and the Department to prepare for the implementation of an increased Energy Bill Support Scheme and the Energy Price Guarantee, providing support in scheme design, guidance, enacting Licence Condition changes and monitoring supplier compliance.
Department for Business and Trade
View details
25 Recommendation Not Addressed
Third Report - Energy pricing and …
Ofgem should publish detailed proposals that will ensure energy suppliers have a higher level of...
Ofgem should publish detailed proposals that will ensure energy suppliers have a higher level of capital adequacy in the future which is in line with growth. Financial stress testing and monitoring of suppliers’ risk management strategies should be conducted by … Read more
Government Response
The government intends to refresh the data used for distributional analysis, and all updated assessments will be shared with the Department and Committee when available.
Department for Business and Trade
View details
26 Conclusion Accepted
Third Report - Energy pricing and …
Our first priority is to ensure that customer credit balances are protected, so that in...
Our first priority is to ensure that customer credit balances are protected, so that in the event of a supplier failure, customers are always able to recover the credit 78 Energy pricing and the future of the energy market they … Read more
Government Response
Ofgem has announced four Market Compliance Reviews to drive improvement across the market.
Department for Business and Trade
View details
27 Recommendation Accepted
Third Report - Energy pricing and …
Ofgem must publish a more robust impact analysis of its proposals for energy suppliers to...
Ofgem must publish a more robust impact analysis of its proposals for energy suppliers to ringfence customer credit balances. We expect the impact analysis to be based on evidence received from suppliers following an information request so that it is … Read more
Government Response
Ofgem already publishes data on customer debt on a quarterly basis, arising from analysis of data gathered under Social Obligations Reporting.
Department for Business and Trade
View details
28 Recommendation Deferred
Third Report - Energy pricing and …
We found consensus from across the sector that the Government should bring forward legislation to...
We found consensus from across the sector that the Government should bring forward legislation to increase the frequency of the Renewables Obligation payments. We ask the Government to set out the reasons for repeated delay and failure in this area … Read more
Government Response
The government states this is a matter for government.
Department for Business and Trade
View details
29 Recommendation Not Addressed
Third Report - Energy pricing and …
We recommend that the Government brings forward legislation to increase the frequency of Renewables Obligation...
We recommend that the Government brings forward legislation to increase the frequency of Renewables Obligation payment deadlines. The Government and Ofgem should work together to implement this change in a way that provides a suitable period of adjustment for suppliers. Read more
Government Response
The response discusses Ofgem's data collection and analysis of self-disconnection among smart-PPM customers and existing rules and guidance, but does not address bringing forward legislation to increase the frequency of Renewables Obligation payment deadlines.
Department for Business and Trade
View details
30 Conclusion Acknowledged
Third Report - Energy pricing and …
The design of the energy price cap has contributed to recent instability in the supplier...
The design of the energy price cap has contributed to recent instability in the supplier market. Ofgem failed to properly stress test its design against a range of scenarios or consider how it interacted with its other regulations. The methodology … Read more
Government Response
Ofgem agrees with the Committee’s assessment of the benefits of Smart prepayment meters and is committed to ensuring that customers receive all the benefits of fully working and interoperable smart meters, but enforcement activity is currently focused on other areas of work due to resource constraints.
Department for Business and Trade
View details
31 Conclusion Accepted
Third Report - Energy pricing and …
We welcome more frequent calculations of the price cap if this stabilises the supplier market...
We welcome more frequent calculations of the price cap if this stabilises the supplier market amid current market conditions. However, Ofgem’s cost benefit analysis of its proposed move to quarterly price cap updates did not consider the impact that further … Read more
Government Response
The government states that the introduction of the Energy Price Guarantee means there is no longer a risk of prices increasing for consumers in January and Ofgem is reviewing its approach in light of the Energy Price Guarantee and will update the Committee in due course.
Department for Business and Trade
View details
32 Conclusion Acknowledged
Third Report - Energy pricing and …
Ofgem should update the cost benefit analysis of its proposal for a quarterly price cap,...
Ofgem should update the cost benefit analysis of its proposal for a quarterly price cap, so it reflects the risk of prices increasing this January, in order for Ofgem, the Government, and Parliament to fully understand the potential impacts for … Read more
Government Response
Ofgem is reviewing its approach to the price cap in light of the Energy Price Guarantee and will update the Committee in due course.
Department for Business and Trade
View details
33 Conclusion Accepted
Third Report - Energy pricing and …
The Energy Bill [HL], which was introduced to Parliament on 6 July 2022, included provisions...
The Energy Bill [HL], which was introduced to Parliament on 6 July 2022, included provisions to extend the energy price beyond 2023, but it will not change how the price cap functions. Neither the Government nor Ofgem has undertaken an … Read more
Government Response
The government is introducing the Energy Price Guarantee to protect households from the spiralling costs of energy and will consider how price protection needs to evolve as the energy system changes.
Department for Business and Trade
View details
34 Recommendation Accepted
Third Report - Energy pricing and …
We ask Ofgem to undertake an immediate review of the costs and benefits of the...
We ask Ofgem to undertake an immediate review of the costs and benefits of the energy price cap to inform decisions about its operation and alternative forms of price protection.
Government Response
Ofgem carries out detailed reviews of the costs and benefits to consumers for every decision made with regard to the price cap, such as those published in early August 2022. There will be an opportunity for a wider review of all elements of the the energy price cap will be undertaken as part of discussions with Government on the future of price protection for consumers as the Energy Price Guarantee draws to a close.
Department for Business and Trade
View details
35 Recommendation Accepted
Third Report - Energy pricing and …
We call on the Government to consider the introduction of a social tariff for the...
We call on the Government to consider the introduction of a social tariff for the most vulnerable customers and a relative tariff for the rest of the market, to be introduced once wholesale energy prices have stabilised. We ask the … Read more
Government Response
The government states it is already protecting households through the Energy Price Guarantee and other existing policies, and will consider how price protection needs to evolve, with next steps to be set out in due course.
Department for Business and Trade
View details
36 Conclusion Acknowledged
Third Report - Energy pricing and …
The Government’s failure to regulate third-party intermediaries in combination with Ofgem’s failure to regulate energy...
The Government’s failure to regulate third-party intermediaries in combination with Ofgem’s failure to regulate energy suppliers led to third-party intermediaries promoting energy suppliers with flawed business models and unsustainable pricing. We are concerned that third-party intermediaries did not pay sufficient … Read more
Government Response
The government recognizes the risks to consumers from unregulated third-party intermediaries (TPIs), and is considering responses to a call for evidence while assessing the impact of recent market events. Ofgem has implemented reforms including requiring suppliers to only work with energy brokers signed up to a qualifying alternative dispute resolution scheme.
Department for Business and Trade
View details
37 Recommendation Deferred
Third Report - Energy pricing and …
We recommend that the Government brings forward regulation of third-party intermediaries.
We recommend that the Government brings forward regulation of third-party intermediaries. Regulations should ensure that third-party intermediaries encourage customers to switch not just on price, but also on customer service standards and other factors. The regulations should also ensure that … Read more
Government Response
The government is considering responses to a call for evidence on third-party intermediaries and assessing the impact of recent market events, with next steps on the future of the retail market to be set out in due course.
Department for Business and Trade
View details
38 Conclusion Acknowledged
Third Report - Energy pricing and …
The previous Energy Retail Market Strategy was primarily driven by the objective to accelerate switching...
The previous Energy Retail Market Strategy was primarily driven by the objective to accelerate switching rates. The collapse of energy retailers demonstrated the flaws of this approach. The revised retail strategy will need to develop a market that differentiates not … Read more
Government Response
Ofgem is working with the Department to ensure the development of a clear and coordinated roadmap for the future energy retail market and the Department is expected to publish an update to their Energy Retail Market Strategy later this year.
Department for Business and Trade
View details
39 Recommendation Acknowledged
Third Report - Energy pricing and …
The Department and Ofgem must urgently update the Energy Retail Market Strategy so that the...
The Department and Ofgem must urgently update the Energy Retail Market Strategy so that the supplier retail market aligns with our net zero target; this must include interim milestones and high-level principles about the role suppliers will play in achieving … Read more
Government Response
Ofgem is working with the Department to ensure the development of a clear and coordinated roadmap for the future energy retail market to support the achievement of an effective transition to net zero in line with the targets set by Government. The Department is expected to publish an update to their Energy Retail Market Strategy later this year, including further information about timescales for finalisation and implementation.
Department for Business and Trade
View details
40 Recommendation Accepted
Third Report - Energy pricing and …
In order to deliver the Government’s target of a zero carbon electricity system by 2035,...
In order to deliver the Government’s target of a zero carbon electricity system by 2035, we further recommend that greater consideration is given to smart tariffs in the revised Energy Retail Market Strategy. Specifically, we ask the Government to consider … Read more
Government Response
The government indicates industry is making progress on implementation of market-wide half-hourly settlement, which Ofgem believes will be an important enabler of a more flexible, low carbon and low-cost energy system.
Department for Business and Trade
View details
41 Recommendation Accepted
Third Report - Energy pricing and …
We are gravely concerned by the latest forecasts from industry experts that the price cap...
We are gravely concerned by the latest forecasts from industry experts that the price cap will increase to £3,244 in October 2022 and £3,363 in January 2023. This will have very serious consequences for households across the country, particularly those … Read more
Government Response
The government announced the Energy Price Guarantee, limiting typical household energy bills to £2,500 per year for two years, and highlighted other existing targeted support measures for vulnerable households.
Department for Business and Trade
View details
42 Conclusion Acknowledged
Third Report - Energy pricing and …
We note some delivery risks in ensuring the Energy Bills Support Scheme reaches vulnerable customers...
We note some delivery risks in ensuring the Energy Bills Support Scheme reaches vulnerable customers this winter, including certain types of tenants, customers using legacy prepayment meters, and those who are in debt to their energy provider.
Government Response
Ofgem continues to work with suppliers and the Department to prepare for the implementation of an increased Energy Bill Support Scheme and the Energy Price Guarantee, providing support in informing scheme design and guidance, enacting Licence Condition changes and monitoring supplier compliance.
Department for Business and Trade
View details
43 Recommendation Acknowledged
Third Report - Energy pricing and …
We recommend that the Government ensures there are sufficient safeguards in place for tenants to...
We recommend that the Government ensures there are sufficient safeguards in place for tenants to benefit from the Energy Bills Support Scheme. We recommend that the Government pays the scheme via a negative standing charge to mitigate the risk of … Read more
Government Response
Ofgem continues to work with suppliers and the Department to prepare for both the implementation of an increased Energy Bill Support Scheme and the Energy Price Guarantee, providing support in scheme design, guidance, and monitoring supplier compliance.
Department for Business and Trade
View details
44 Recommendation Acknowledged
Third Report - Energy pricing and …
While the Government committed to publishing a Fairness and Affordability call for evidence over a...
While the Government committed to publishing a Fairness and Affordability call for evidence over a year ago, this is yet to materialise. This is a vital piece of work which will need to address how to allocate energy policy costs … Read more
Government Response
Ofgem will share all available information on distributional effects of different policies with the Department and the Committee and intends to refresh the data used for distributional analysis, sharing updated assessments when available.
Department for Business and Trade
View details
45 Recommendation Acknowledged
Third Report - Energy pricing and …
We recommend that the Government urgently publishes its overdue Fairness and Affordability call for evidence,...
We recommend that the Government urgently publishes its overdue Fairness and Affordability call for evidence, particularly in the context of rising energy prices. We recommend that the review includes a distributional analysis of the impact that recovering policy costs from … Read more
Government Response
Ofgem will share all available information on distributional effects of different policies with the Department and the Committee and intends to refresh the data used for distributional analysis.
Department for Business and Trade
View details
46 Recommendation Accepted
Third Report - Energy pricing and …
Ofgem should require energy suppliers to take a pro-consumer approach to payments and debt collections.
Ofgem should require energy suppliers to take a pro-consumer approach to payments and debt collections. We urge Ofgem to take swift and firm action in response to suppliers breaching the Ability To Pay licence conditions and ensure that suppliers promote … Read more
Government Response
Ofgem has announced four Market Compliance Reviews to drive improvement across the market, including one focused on how suppliers support customers in debt or payment difficulty and is taking enforcement action where necessary.
Department for Business and Trade
View details
47 Conclusion Accepted
Third Report - Energy pricing and …
Energy prices are expected to increase to unprecedented levels and the Government’s May 2022 support...
Energy prices are expected to increase to unprecedented levels and the Government’s May 2022 support package will no longer offset the significant increases for households. A considerable number of households will struggle to pay their energy bills and will be … Read more
Government Response
The government outlined actions to support people and businesses with their energy bills and tackle the root causes of the issues in the UK energy market, including the 'Energy Price Guarantee' and targeted support for vulnerable households.
Department for Business and Trade
View details
48 Recommendation Accepted
Third Report - Energy pricing and …
We recommend that the Government develops a scheme to help vulnerable customers accelerate the repayment...
We recommend that the Government develops a scheme to help vulnerable customers accelerate the repayment of debt that has accrued as a result of the energy pricing crisis, for example, by matching the contribution made by customers through the Fuel … Read more
Government Response
Ofgem publishes data on customer debt on a quarterly basis, arising from analysis of data gathered under Social Obligations Reporting, and intends to publish updated analysis quarterly thereafter.
Department for Business and Trade
View details
49 Recommendation Deferred
Third Report - Energy pricing and …
It is unacceptable that prepayment customers, who are often moved to a prepayment meter because...
It is unacceptable that prepayment customers, who are often moved to a prepayment meter because they cannot afford their energy bill, pay more for their energy than direct debit customers. We recommend that Ofgem addresses this differential, for example by … Read more
Government Response
The government states that this is a matter for Government, not Ofgem.
Department for Business and Trade
View details
50 Conclusion Accepted
Third Report - Energy pricing and …
We are concerned by reports that self-disconnection is already at a record high, and this...
We are concerned by reports that self-disconnection is already at a record high, and this is before the expected, unprecedented rise to the energy price cap this winter. Ofgem only collects partial data on self-disconnection and does not have a … Read more
Government Response
Ofgem introduced a quarterly request for information to gather data from larger domestic suppliers on self-disconnection and Ofgem's view is that it would be preferable to have longer-term data available before making it publicly available.
Department for Business and Trade
View details
51 Recommendation Acknowledged
Third Report - Energy pricing and …
We recommend that Ofgem urgently improves its data collection on self-disconnection and publishes this on...
We recommend that Ofgem urgently improves its data collection on self-disconnection and publishes this on a more frequent basis. We ask Ofgem to conduct an impact analysis on how expected increases to the price cap this winter will affect customers … Read more
Government Response
Ofgem introduced a quarterly request for information on prepayment meter customers, including self-disconnection, in Q4 2021 but is waiting to have at least one year of data before making it publicly available, possibly in early 2023; they also state the existing Ability to Pay rules require suppliers to assess a consumer’s ability to pay and agree an affordable payment plan.
Department for Business and Trade
View details
52 Conclusion Acknowledged
Third Report - Energy pricing and …
Replacing legacy prepayment meters with smart prepayment meters is crucial to protecting vulnerable customers in...
Replacing legacy prepayment meters with smart prepayment meters is crucial to protecting vulnerable customers in the coming months because they allow suppliers to identify customers who are at risk of self-disconnection and provide immediate support. Yet we are hearing reports … Read more
Government Response
Ofgem agrees with the committee's assessment of the benefits of smart prepayment meters and is committed to ensuring customers receive those benefits, but enforcement activity is currently focused on other areas due to resource constraints and traditional meter installations are decreasing.
Department for Business and Trade
View details
53 Recommendation Acknowledged
Third Report - Energy pricing and …
We call on Ofgem to enforce its New and Replacement Obligation in the supplier licence.
We call on Ofgem to enforce its New and Replacement Obligation in the supplier licence. We recommend that the Government makes it mandatory for all prepayment households to have a smart meter installed urgently, irrespective of supplier, so that 82 … Read more
Government Response
Ofgem agrees with the benefits of smart prepayment meters but is focused on other areas due to resource constraints; they expect new non-smart meter installations to decline as customers become more aware of the benefits and stocks of traditional equipment falls.
Department for Business and Trade
View details
54 Recommendation Accepted
Third Report - Energy pricing and …
Energy efficiency is the quickest and most cost-effective way to reduce gas demand and lower...
Energy efficiency is the quickest and most cost-effective way to reduce gas demand and lower household energy bills. The absence of a home insulation programme is an unacceptable gap in policy that must be urgently rectified. Since wholesale prices rose … Read more
Government Response
The government states that energy efficiency is a key priority and details the Energy Price Guarantee, the Energy Bills Support Scheme, and its commitment to improve homes to EPC band C by 2030.
Department for Business and Trade
View details
55 Recommendation Accepted
Third Report - Energy pricing and …
We reiterate our previous views that the Government should implement urgent, far- reaching, and long-term...
We reiterate our previous views that the Government should implement urgent, far- reaching, and long-term measures to replace the Green Homes Grant scheme that provides the energy efficiency supply chain with confidence of enduring demand and ends the stop-start policy … Read more
Government Response
The government has committed £6.6bn this Parliament to improve homes to EPC band C by 2030, is consulting on raising Minimum Energy Efficiency Standards for privately rented homes to EPC band C by 2028, and is considering options to deliver £9.2bn to improve energy efficiency across homes, schools and hospitals.
Department for Business and Trade
View details
56 Conclusion Acknowledged
Third Report - Energy pricing and …
A systemic failure in regulation left the energy supply market, and ultimately taxpayers, more exposed...
A systemic failure in regulation left the energy supply market, and ultimately taxpayers, more exposed when the global wholesale energy crisis began. Some energy supplier businesses were allowed to behave in an entirely unacceptable way, without any consequence for their … Read more
Government Response
BEIS maintains a regular dialogue with Ofgem to review lessons learned and understand where policies can be enhanced to improve outcomes, and will work with Ofgem and relevant bodies to understand if there are any gaps within the current regime which prevent unfit conduct by energy company directors being appropriately addressed.
Department for Business and Trade
View details
57 Conclusion Acknowledged
Third Report - Energy pricing and …
The energy price crisis is putting continued strain on the remaining suppliers in the market.
The energy price crisis is putting continued strain on the remaining suppliers in the market. At the same time, Ofgem is proceeding with a programme of major regulatory reform with the objective to reverse its previous litany of shortcomings and … Read more
Government Response
The government acknowledges Ofgem's efforts to improve the robustness of the energy supply market, including an independent review into supplier failures and a new Review of UK Energy Regulation, and details its own oversight of Ofgem.
Department for Business and Trade
View details
58 Conclusion Accepted
Third Report - Energy pricing and …
The impact of the energy price crisis on households is ongoing and severe, particularly in...
The impact of the energy price crisis on households is ongoing and severe, particularly in the context of other considerable inflationary pressures, and is likely to cause an unacceptable rise in fuel poverty and hardship this winter. With wholesale Energy … Read more
Government Response
The government states it has already set out decisive action including the Energy Price Guarantee and other targeted support to address the energy price crisis.
Department for Business and Trade
View details
59 Recommendation Accepted
Third Report - Energy pricing and …
With the worst yet to come, the consequences of the energy price crisis and wider...
With the worst yet to come, the consequences of the energy price crisis and wider cost-of-living crisis on customers, and energy suppliers, is still to be seen. The extent of these challenges cannot be dealt with by BEIS or Ofgem … Read more
Government Response
The government has taken decisive action to support people and businesses, including the Energy Price Guarantee limiting typical household bills to £2,500 a year for two years, the Energy Bill Relief Scheme providing a discount on wholesale prices for non-domestic customers, and targeted support for vulnerable households.
Department for Business and Trade
View details
Government Response AI assessment · 59 of 32 classified
Accepted 20
Acknowledged 23
Deferred 7
Not Addressed 9
Total 32 recs + 27 conclusions
Correspondence 19 letters
31 Jan 2023 Note from Ofgem incl. compliance and enforcement strategy, and detail for resourcing for compliance and enforcement
Parliament page
21 Sep 2022 To committee Letter from the Minister for Energy, Clean Growth and Climate Change relating to the special administration of Bulb, 5 September 2022
Parliament page
6 Sep 2022 To committee Letter from the Secretary of State relating to the special administration of Bulb Energy, 16 August 2022
Parliament page
29 Jul 2022 To committee Letter from Chair to Rishi Sunak MP on energy bills, 26 July 2022
Parliament page
29 Jul 2022 To committee Letter from Chair to Liz Truss MP on energy bills, 26 July 2022
Parliament page
12 Jul 2022 To committee Letter from the Secretary of State relating to the Energy Security Bill, 6 July 2022
Parliament page
5 Jul 2022 To committee Letter from the Minister for Energy, Clean Growth and Climate Change relating to the Special Administration of Bulb Energy, 28 June 2022
Parliament page
5 Jul 2022 To committee Letter from the CEO of Ofgem relating to his appearance before the Committee last month, 27 June 2022
Parliament page
28 Jun 2022 To committee Letter from the End Fuel Poverty Coalition to the Chief Executive of OFCOM relating to energy markets, 14 June 2022
Parliament page
28 Jun 2022 To committee Letter from the Secretary of State to Alan Brown MP following up from the session on energy pricing, 20 June 2022
Parliament page
14 Jun 2022 To committee Letter from the Chair to autoswitchers in the energy market, 26 May 2022
Parliament page
24 May 2022 To committee Letter from the Minister of State for Energy, Clean Growth & Climate Change relating to Special Administration of Bulb, 17 May 2022
Parliament page
24 May 2022 From committee Letter to the Chancellor relating to the projected increase in the energy price cap, 24 May 2022
Parliament page
24 May 2022 To committee Letter from the CEO of Centrica following up from his appearance before the Committee, 11 May 2022
Parliament page
17 May 2022 Correspondence from the Minister for Energy, Clean Growth and Climate Change relating to the Special Administration of Bulb, 27 April 2022
Parliament page
20 Apr 2022 To committee Letter from the Minister for Energy, Clean Growth and Climate Change relating to the special administration of Bulb Energy
Parliament page
19 Apr 2022 To committee Letter from Lord Callanan on the Warm Home Discount and Energy Company Obligation schemes
Parliament page
1 Mar 2022 To committee Letter from Ofgem in follow up to oral evidence on energy pricing and the UK energy market
Parliament page
1 Mar 2022 To committee Letter from Centrica on the energy market and customer credit balances
Parliament page