Energy pricing and the future of the Energy Market
Business and Trade Committee
Closed
Inquiry
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 …
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32
Recommendations
27
Conclusions
1
Report
4
Oral sessions
19
Letters
4
Events
Activity timeline 29 events
31 Jan
2023
2023
13 Oct
2022
2022
21 Sep
2022
2022
6 Sep
2022
2022
29 Jul
2022
2022
29 Jul
2022
2022
26 Jul
2022
2022
Report published
12 Jul
2022
2022
5 Jul
2022
2022
5 Jul
2022
2022
28 Jun
2022
2022
Oral evidence sessions 4 sessions
24 May 2022
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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
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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
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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
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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
Reports 1 report · click to expand
| 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
9 results
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 …
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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
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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 …
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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
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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
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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 …
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Government Response
Response discusses why they are not replacing standing charges with a volumetric alternative based on usage.
Department for Business and Trade
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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
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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 …
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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
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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 …
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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
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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 …
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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
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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.
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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
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Government Response AI assessment · 59 of 32 classified
Accepted
20
Acknowledged
23
Deferred
7
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