How can Britain ensure secure, affordable energy for all?
On Wednesday 4 June the ESNZ Committee opens the oral evidence phase in a major new inquiry on the cost of energy for UK consumers, business and industry. This first session will consider the affordability of energy for poorer households, including developing issues around the Winter Fuel Payment.
Well over a third of UK households have to spend more than 10% of their income after housing costs on domestic energy – up from one fifth of households in 2021, before the gas price shock sent the cost of living spiralling upwards.
With evidence from leading charities working in the sector, the Committee will look at ways to support financially vulnerable consumers this coming winter and beyond, including through the Winter Fuel Payment and Warm Home Grant. It will also consider if there is a case for an energy social tariff and how to support consumers that have fallen into energy debt.
Meeting details
The UK’s energy regulator Ofgem has faced serious questions about structure and competition in UK retail markets, after a series of high-profile company failures as energy prices rocketed after the Russian invasion of Ukraine affected millions of households, and added further bailout costs onto their bills.
The Committee will question key stakeholders in the energy market on the current state of the retail market in the UK and possible reforms. Its recent report on warm homes retrofit called for a reduction in the policy costs levied on electricity to bring its cost to consumers down relative to gas, as a driver for electrification and the clean energy transition.
How else could our energy bills be restructured - replacing the Energy Price Cap, or the way standing charges are levied - to drive transparency and affordability in the clean, secure energy transition?